Payments; time; amounts instead of contributions; election;
interest and penalties; joint applications
Sec. 1. Contributions shall accrue and become payable from each
employer for each calendar year in which it is subject to this article
with respect to wages paid during such calendar year except where
the status of an employer is changed by cessation or disposition of
business or appointment of a receiver, trustees, trustee in bankruptcy,
or other fiduciary, contributions shall immediately become due and
payable on the basis of wages paid or payable by such employer as
of the date of the change of status. Such contributions shall be paid
to the department in such manner as the commissioner may prescribe,
and shall not be deducted, in whole or in part, from the remuneration
of individuals in an employer's employ. When contributions are
determined in accordance with Schedule A as provided in
IC 22-4-11-3, the board may prescribe rules to require an estimated
advance payment of contributions in whole or in part, if in the
judgment of the board such advance payments will avoid a debit
balance in the fund during the calendar quarter to which the advance
payment applies. An adjustment shall be made following the quarter
in which an advance payment has been made to reflect the difference
between the estimated contribution and the contribution actually
payable. Advance payment of contributions shall not be required for
more than one (1) calendar quarter in any calendar year.
(a)(1) Any employer which is, or becomes, subject to this
article by reason of IC 22-4-7-2(g) or IC 22-4-7-2(h) shall pay
contributions as provided under this article unless it elects to
become liable for "payments in lieu of contributions" (as
defined in IC 22-4-2-32).
(2) Except as provided in subsection (a)(4), the election to
become liable for "payments in lieu of contributions" must be
filed with the department on a form prescribed by the
commissioner not later than thirty-one (31) days following the
date upon which such entity qualifies as an employer under this
article, and shall be for a period of not less than two (2)
calendar years.
(3) Any employer which makes an election in accordance with
subdivisions (1) through (2) will continue to be liable for
"payments in lieu of contributions" until it files with the
commissioner a written notice terminating its election. This
notice must be filed not later than thirty (30) days prior to the
beginning of the taxable year for which such termination shall
first be effective.
(4) Any employer which qualifies to elect to become liable for
"payments in lieu of contributions" and has been paying
contributions under this article for a period subsequent to
January 1, 1972, may change to a reimbursable basis by filing
with the department not later than thirty (30) days prior to the
beginning of any taxable year a written notice of election to
become liable for payments in lieu of contributions. Such
election shall not be terminable by the organization for that and
the next year.
(b)(1) Employers making "payments in lieu of contributions"
under subsection (a) shall make reimbursement payments
monthly. At the end of each calendar month the department
shall bill each such employer (or group of employers) for an
amount equal to the full amount of regular benefits plus
one-half (1/2) of the amount of extended benefits paid during
such month that is attributable to services in the employ of such
employers or group of employers. Governmental entities of this
state and its political subdivisions electing to make "payments
in lieu of contributions" shall be billed by the department at the
end of each calendar month for an amount equal to the full
amount of regular benefits plus the full amount of extended
benefits paid during the month that is attributable to service in
the employ of the governmental entities.
(2) Payment of any bill rendered under subdivision (1) shall be
made not later than thirty (30) days after such bill was mailed
to the last known address of the employer or was otherwise
delivered to it, unless there has been an application for review
and redetermination in accordance with subdivision (4).
(3) Payments made by any employer under the provisions of
this subsection shall not be deducted or deductible, in whole or
in part, from the remuneration of individuals in the employ of
the employer.
(4) The amount due specified in any bill from the department
shall be conclusive on the employer unless, not later than fifteen
(15) days after the bill was mailed to its last known address or
otherwise delivered to it, the employer files an application for
redetermination. If the employer so files, the employer shall
have an opportunity to be heard, and such hearing shall be
conducted by a liability administrative law judge pursuant to
IC 22-4-32-1 through IC 22-4-32-15. After the hearing, the
liability administrative law judge shall immediately notify the
employer in writing of the finding, and the bill, if any, so made
shall be final, in the absence of judicial review proceedings,
fifteen (15) days after such notice is issued.
(5) Past due payments of amounts in lieu of contributions shall
be subject to the same interest and penalties that, pursuant to
IC 22-4-29, apply to past due contributions.
(c) Two (2) or more employers that have elected to become liable
for "payments in lieu of contributions" in accordance with subsection
(a) may file a joint application with the department for the
establishment of a group account for the purpose of sharing the cost
of benefits paid that are attributable to service in the employ of such
employers. Such group account shall be established as provided in
regulations prescribed by the commissioner.
(Formerly: Acts 1947, c.208, s.1001; Acts 1955, c.317, s.4; Acts
1971, P.L.355, SEC.18.) As amended by Acts 1977, P.L.262, SEC.17;
Acts 1981, P.L.209, SEC.6; P.L.18-1987, SEC.33; P.L.135-1990,
SEC.1; P.L.21-1995, SEC.70; P.L.235-1999, SEC.9.
Last modified: May 27, 2006