Information Maintained by the Office of Code Revision Indiana Legislative Services Agency
IC 22-4-11
     Chapter 11. Employer Experience Accounts

IC 22-4-11-1
Experience account; charging
    
Sec. 1. (a) For the purpose of charging employers' experience or reimbursable accounts with regular benefits paid subsequent to July 3, 1971, to any eligible individual but except as provided in IC 22-4-22 and subsection (f), such benefits paid shall be charged proportionately against the experience or reimbursable accounts of the individual's employers in the individual's base period (on the basis of total wage credits established in such base period) against whose accounts the maximum charges specified in this section shall not have been previously made. Such charges shall be made in the inverse chronological order in which the wage credits of such individuals were established. However, when an individual's claim has been computed for the purpose of determining the individual's regular benefit rights, maximum regular benefit amount, and the proportion of such maximum amount to be charged to the experience or reimbursable accounts of respective chargeable employers in the base period, the experience or reimbursable account of any employer charged with regular benefits paid shall not be credited or recredited with any portion of such maximum amount because of any portion of such individual's wage credits remaining uncharged at the expiration of the individual's benefit period. The maximum so charged against the account of any employer shall not exceed twenty-eight percent (28%) of the total wage credits of such individual with each such employer with which wage credits were established during such individual's base period. Benefits paid under provisions of IC 22-4-22-3 in excess of the amount that the claimant would have been monetarily eligible for under other provisions of this article shall be paid from the fund and not charged to the experience account of any employer. This exception shall not apply to those employers electing to make payments in lieu of contributions who shall be charged for all benefit payments which are attributable to service in their employ. Irrespective of the twenty-eight percent (28%) maximum limitation provided for in this section, any extended benefits paid to an eligible individual based on service with a governmental entity of this state or its political subdivisions shall be charged to the experience or reimbursable accounts of the employers, and fifty percent (50%) of any extended benefits paid to an eligible individual shall be charged to the experience or reimbursable accounts of the individual's employers in the individual's base period, other than governmental entities of this state or its political subdivisions, in the same proportion and sequence as are provided in this section for regular benefits paid. Additional benefits paid under IC 22-4-12-4(c) and benefits paid under IC 22-4-15-1(c)(8) shall:
        (1) be paid from the fund; and
        (2) not be charged to the experience account or the reimbursable account of any employer.


    (b) If the aggregate of wages paid to an individual by two (2) or more employers during the same calendar quarter exceeds the maximum wage credits (as defined in IC 22-4-4-3) then the experience or reimbursable account of each such employer shall be charged in the ratio which the amount of wage credits from such employer bears to the total amount of wage credits during the base period.
    (c) When wage records show that an individual has been employed by two (2) or more employers during the same calendar quarter of the base period but do not indicate both that such employment was consecutive and the order of sequence thereof, then and in such cases it shall be deemed that the employer with whom the individual established a plurality of wage credits in such calendar quarter is the most recent employer in such quarter and its experience or reimbursable account shall be first charged with benefits paid to such individual. The experience or reimbursable account of the employer with whom the next highest amount of wage credits were established shall be charged secondly and the experience or reimbursable accounts of other employers during such quarters, if any, shall likewise be charged in order according to plurality of wage credits established by such individual.
    (d) Except as provided in subsection (f), if an individual:
        (1) voluntarily leaves an employer without good cause in connection with the work; or
        (2) is discharged from an employer for just cause;
wage credits earned with the employer from whom the employee has separated under these conditions shall be used to compute the claimant's eligibility for benefits, but charges based on such wage credits shall be paid from the fund and not charged to the experience account of any employer. However, this exception shall not apply to those employers who elect to make payments in lieu of contributions, who shall be charged for all benefit payments which are attributable to service in their employ.
    (e) Any nonprofit organization which elects to make payments in lieu of contributions into the unemployment compensation fund as provided in this article is not liable to make the payments with respect to the benefits paid to any individual whose base period wages include wages for previously uncovered services as defined in IC 22-4-4-4, nor is the experience account of any other employer liable for charges for benefits paid the individual to the extent that the unemployment compensation fund is reimbursed for these benefits pursuant to Section 121 of P.L.94-566. Payments which otherwise would have been chargeable to the reimbursable or contributing employers shall be charged to the fund.
    (f) If an individual:
        (1) earns wages during the individual's base period through employment with two (2) or more employers concurrently;
        (2) is separated from work by one (1) of the employers for reasons that would not result in disqualification under IC 22-4-15-1; and
        (3) continues to work for one (1) or more of the other employers after the end of the base period and continues to work during the applicable benefit year on substantially the same basis as during the base period;
wage credits earned with the base period employers shall be used to compute the claimant's eligibility for benefits, but charges based on the wage credits from the employer who continues to employ the individual shall be charged to the experience or reimbursable account of the separating employer.
    (g) Subsection (f) does not affect the eligibility of a claimant who otherwise qualifies for benefits nor the computation of benefits.
    (h) Unemployment benefits paid shall not be charged to the experience account of a base period employer when the claimant's unemployment from the employer was a direct result of the condemnation of property by a municipal corporation (as defined in IC 36-1-2-10), the state, or the federal government, a fire, a flood, or an act of nature, when at least fifty percent (50%) of the employer's employees, including the claimant, became unemployed as a result. This exception does not apply when the unemployment was an intentional result of the employer or a person acting on behalf of the employer.
(Formerly: Acts 1947, c.208, s.1101; Acts 1965, c.190, s.4; Acts 1967, c.310, s.13; Acts 1971, P.L.355, SEC.23; Acts 1973, P.L.239, SEC.3.) As amended by Acts 1976, P.L.114, SEC.2; Acts 1977, P.L.262, SEC.18; P.L.227-1983, SEC.4; P.L.80-1990, SEC.10; P.L.172-1991, SEC.1; P.L.202-1993, SEC.3; P.L.290-2001, SEC.2; P.L.189-2003, SEC.1.

IC 22-4-11-2
Experience account; debit balance; rate of contribution; deposits
    
Sec. 2. (a) Except as provided in IC 22-4-11.5, the commissioner shall for each year determine the contribution rate applicable to each employer.
    (b) The balance shall include contributions with respect to the period ending on the computation date and actually paid on or before July 31 immediately following the computation date and benefits actually paid on or before the computation date and shall also include any voluntary payments made in accordance with IC 22-4-10-5:
        (1) for each calendar year, an employer's rate shall be determined in accordance with the rate schedules in section 3 or 3.3 of this chapter; and
        (2) for each calendar year, an employer's rate shall be two and seven-tenths percent (2.7%), except as otherwise provided in IC 22-4-37-3, unless and until:
            (A) the employer has been subject to this article throughout the thirty-six (36) consecutive calendar months immediately preceding the computation date; and
            (B) there has been some annual payroll in each of the three (3) twelve (12) month periods immediately preceding the computation date.


    (c) In addition to the conditions and requirements set forth and provided in subsection (b)(2)(A) and (b)(2)(B), an employer's rate shall not be less than five and four-tenths percent (5.4%) unless all required contribution and wage reports have been filed within thirty-one (31) days following the computation date and all contributions, penalties, and interest due and owing by the employer or the employer's predecessors for periods prior to and including the computation date have been paid:
        (1) within thirty-one (31) days following the computation date; or
        (2) within ten (10) days after the commissioner has given the employer a written notice by registered mail to the employer's last known address of:
            (A) the delinquency; or
            (B) failure to file the reports;
        whichever is the later date.
The board or the board's designee may waive the imposition of rates under this subsection if the board finds the employer's failure to meet the deadlines was for excusable cause. The commissioner shall give written notice to the employer before this additional condition or requirement shall apply.
    (d) However, if the employer is the state or a political subdivision of the state or any instrumentality of a state or a political subdivision, or any instrumentality which is wholly owned by the state and one (1) or more other states or political subdivisions, the employer may contribute at a rate of one percent (1%) until it has been subject to this article throughout the thirty-six (36) consecutive calendar months immediately preceding the computation date.
    (e) On the computation date every employer who had taxable wages in the previous calendar year shall have the employer's experience account charged with the amount determined under the following formula:
        STEP ONE: Divide:
            (A) the employer's taxable wages for the preceding calendar year; by
            (B) the total taxable wages for the preceding calendar year.
        STEP TWO: Multiply the quotient determined under STEP ONE by the total amount of benefits charged to the fund under section 1 of this chapter.
    (f) One (1) percentage point of the rate imposed under subsection (c) or the amount of the employer's payment that is attributable to the increase in the contribution rate, whichever is less, shall be imposed as a penalty that is due and shall be deposited upon collection into the special employment and training services fund established under IC 22-4-25-1. The remainder of the contributions paid by an employer pursuant to the maximum rate shall be:
        (1) considered a contribution for the purposes of this article; and
        (2) deposited in the unemployment insurance benefit fund established under IC 22-4-26.
(Formerly: Acts 1947, c.208, s.1102; Acts 1953, c.177, s.12; Acts 1955, c.317, s.6; Acts 1965, c.190, s.5; Acts 1967, c.310, s.14; Acts 1971, P.L.355, SEC.24.) As amended by Acts 1977, P.L.262, SEC.19; P.L.227-1983, SEC.5; P.L.225-1985, SEC.2; P.L.34-1985, SEC.4; P.L.20-1986, SEC.6; P.L.18-1987, SEC.37; P.L.80-1990, SEC.11; P.L.1-1992, SEC.107; P.L.105-1994, SEC.2; P.L.21-1995, SEC.73; P.L.179-1999, SEC.1; P.L.98-2005, SEC.8.

IC 22-4-11-3
Rate schedules for contributions; determination
    
Sec. 3. (a) The applicable schedule of rates for the calendar year 1983 and thereafter shall be determined by the ratio resulting when the balance in the fund as of the determination date is divided by the total payroll of all subject employers for the immediately preceding calendar year. Schedule A, B, C, or D, appearing on the line opposite the fund ratio in the schedule below, shall be applicable in determining and assigning each employer's contribution rate for the calendar year immediately following the determination date. For the purposes of this subsection, "total payroll" means total remuneration reported by all contributing employers as required by this article and does not include the total payroll of any employer who elected to become liable for payments in lieu of contributions (as defined in IC 22-4-2-32). For the purposes of this subsection, "subject employers" means those employers who are subject to contribution.
FUND RATIO SCHEDULE

When the Fund Ratio Is:
            Applicable
    As Much As     But Less Than     Schedule
         1 .0%    A
    1 .0%    1 .5%    B
    1 .5%    2 .25%    C
    2 .25%        D
    (b) For calendar years before 2002, if the conditions and requirements of section 2 of this chapter are met, the rate of contributions shall be determined and assigned, with respect to each calendar year, to employers whose accounts have a credit balance and who are eligible therefor according to each employer's credit reserve ratio. Each employer shall be assigned the contribution rate appearing in the applicable schedule A, B, C, or D on the line opposite his credit reserve ratio as set forth in the rate schedule below:
RATE SCHEDULE FOR ACCOUNTS

WITH CREDIT BALANCES

When the Credit Reserve Ratio Is:
        As    But         Rate Schedules
        Much    Less             (%)
        As    Than     A     B     C     D     E
    3 .0         1 .2    0 .2    0 .2    0 .2    0 .15
    2 .8    3 .0    1 .4    0 .4    0 .2    0 .2    0 .15
    2 .6    2 .8    1 .6    0 .6    0 .2    0 .2    0 .15
    2 .4    2 .6    1 .8    0 .8    0 .4    0 .2    0 .2
    2 .2    2 .4    2 .0    1 .0    0 .6    0 .2    0 .2
    2 .0    2 .2    2 .2    1 .2    0 .8    0 .4    0 .4
    1 .8    2 .0    2 .4    1 .4    1 .0    0 .6    0 .6
    1 .6    1 .8    2 .6    1 .6    1 .2    0 .8    0 .8
    1 .4    1 .6    2 .8    1 .8    1 .4    1 .0    1 .0
    1 .2    1 .4    3 .0    2 .0    1 .6    1 .2    1 .2
    1 .0    1 .2    3 .2    2 .2    1 .8    1 .4    1 .4
    0 .8    1 .0    3 .4    2 .4    2 .0    1 .6    1 .6
    0 .6    0 .8    3 .6    2 .6    2 .2    1 .8    1 .8
    0 .4    0 .6    3 .8    2 .8    2 .4    2 .0    2 .0
    0 .2    0 .4    4 .0    3 .0    2 .6    2 .2    2 .2
    0     0 .2    4 .2    3 .2    2 .8    2 .4    2 .4
    (c) Each employer whose account as of any computation date occurring on and after June 30, 1984, shows a debit balance shall be assigned the rate of contributions appearing on the line opposite his debit ratio as set forth in the following rate schedule for accounts with debit balances:
RATE SCHEDULE FOR ACCOUNTS

WITH DEBIT BALANCES

When the Debit Reserve Ratio Is:
        As    But         Rate Schedules
        Much    Less             (%)
        As    Than     A     B     C     D     E
            1.5     4.5     4.4     4.3     4.2     3.6
        1.5    3.0     4.8     4.7     4.6     4.5     3.8
        3.0    4.5     5.1     5.0     4.9     4.8     4.1
        4.5    6.0     5.4     5.3     5.2     5.1     4.4
        6.0         5.7     5.6     5.5     5.4     5.4
    (d) Any adjustment in the amount charged to any employer's experience account made subsequent to the assignment of rates of contributions for any calendar year shall not operate to alter the amount charged to the experience accounts of any other base-period employers.
(Formerly: Acts 1947, c.208, s.1103; Acts 1955, c.317, s.7; Acts 1965, c.190, s.6; Acts 1967, c.310, s.15; Acts 1971, P.L.355, SEC.25.) As amended by Acts 1977, P.L.262, SEC.20; Acts 1982, P.L.136, SEC.1; P.L.225-1985, SEC.3; P.L.171-1991, SEC.2; P.L.1-1992, SEC.108; P.L.202-1993, SEC.4; P.L.1-1994, SEC.112; P.L.21-1995, SEC.76; P.L.259-1997(ss), SEC.2; P.L.30-2000, SEC.2; P.L.273-2003, SEC.3.

IC 22-4-11-3.1 Repealed
    
(Repealed by P.L.1-2001, SEC.51.)

IC 22-4-11-3.2
Repealed
    
(Repealed by P.L.273-2003, SEC.8.)

IC 22-4-11-3.3


Contribution rates after 2001
    
Sec. 3.3. (a) For calendar years after 2001, if the conditions of section 2 of this chapter are met, the rate of contributions shall be determined and assigned, with respect to each calendar year, to employers whose accounts have a credit balance and who are eligible therefore according to each employer's credit reserve ratio. Each employer shall be assigned the contribution rate appearing in the applicable schedule A, B, C, D, or E on the line opposite the employer's credit reserve ratio as set forth in the rate schedule below:
    RATE SCHEDULE FOR ACCOUNTS
                        WITH CREDIT BALANCES
When the Credit Reserve Ratio Is:
As    But         Rate Schedules
Much    Less             (%)
As    Than     A     B      C      D      E
3.00         1 .10    0 .10    0 .10    0 .10    0 .15
2.80    3 .00    1 .30    0 .30    0 .10    0 .10    0 .15
2.60    2 .80    1 .50    0 .50    0 .10    0 .10    0 .15
2.40    2 .60    1 .70    0 .70    0 .30    0 .10    0 .20
2.20    2 .40    1 .90    0 .90    0 .50    0 .10    0 .20
2.00    2 .20    2 .10    1 .10    0 .70    0 .30    0 .40
1.80    2 .00    2 .30    1 .30    0 .90    0 .50    0 .60
1.60    1 .80    2 .50    1 .50    1 .10    0 .70    0 .80
1.40    1 .60    2 .70    1 .70    1 .30    0 .90    1 .00
1.20    1 .40    2 .90    1 .90    1 .50    1 .10    1 .20
1.00    1 .20    3 .10    2 .10    1 .70    1 .30    1 .40
0.80    1 .00    3 .30    2 .30    1 .90    1 .50    1 .60
0.60    0 .80    3 .50    2 .50    2 .10    1 .70    1 .80
0.40    0 .60    3 .70    2 .70    2 .30    1 .90    2 .00
0.20    0 .40    3 .90    2 .90    2 .50    2 .10    2 .20
0.00    0 .20    4 .10    3 .10    2 .70    2 .30    2 .40
    (b) For calendar years after 2001, if the conditions of section 2 of this chapter are met, the rate of contributions shall be determined and assigned, with respect to each calendar year, to employers whose accounts have a debit balance and who are eligible therefore according to each employer's debit reserve ratio. Each employer shall be assigned the contribution rate appearing in the applicable schedule A, B, C, D, or E on the line opposite the employer's debit reserve ratio as set forth in the rate schedule below:
RATE SCHEDULE FOR ACCOUNTS

WITH DEBIT BALANCES

When the Debit Reserve Ratio Is:
As    But         Rate Schedules
Much    Less             (%)
As    Than     A     B      C      D      E
    1 .50    4 .40    4 .30    4 .20    4 .10    5 .40
1.50    3 .00    4 .70    4 .60    4 .50    4 .40    5 .40
3.00    4 .50    5 .00    4 .90    4 .70    4 .70    5 .40
4.50    6 .00    5 .30    5 .20    5 .10    5 .00    5 .40
6.00         5 .60    5 .50    5 .40    5 .40    5 .40
As added by P.L.290-2001, SEC.4. Amended by P.L.1-2002, SEC.89; P.L.273-2003, SEC.4.

IC 22-4-11-4
Payroll report; inadequate report; correction; contributions
    
Sec. 4. (a) If the commissioner finds that any employer has failed to file any payroll report or has filed a report which the commissioner finds incorrect or insufficient, the commissioner shall make an estimate of the information required from the employer on the basis of the best evidence reasonably available to the commissioner at the time and notify the employer thereof by mail addressed to the employer's last known address. Except as provided in subsection (b), unless the employer files the report or a corrected or sufficient report, as the case may be, within fifteen (15) days after the mailing of the notice, the commissioner shall compute the employer's rate of contribution on the basis of the estimates, and the rate determined in this manner shall be subject to increase but not to reduction on the basis of subsequently ascertained information. The estimated amount of contribution is considered prima facie correct.
    (b) The commissioner may adjust the amount of contribution estimated in this manner on the basis of information ascertained after the expiration of the notice period if the employer or other interested party:
        (1) makes an affirmative showing of all facts alleged as a reasonable cause for the failure to timely file any payroll report; and
        (2) submits accurate and reliable payroll reports.
(Formerly: Acts 1947, c.208, s.1104.) As amended by P.L.20-1986, SEC.7; P.L.18-1987, SEC.38; P.L.21-1995, SEC.74; P.L.18-2001, SEC.1; P.L.290-2001, SEC.5; P.L.1-2002, SEC.90.