IN.gov: Additional Employer Responsibilities

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Governor Mitch Daniels

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Additional Employer Responsibilities

I-C. ADDITIONAL EMPLOYER RESPONSIBILITIES

Employment may be defined differently by laws regarding taxes, worker compensation, labor, and unemployment. Often, a worker's status as an employee is dependent on how much work is performed and how wages are paid. Some laws use tests involving the amount of control the payer has over how, where, and when the work is done. The IRS has Publication 15A, which outlines the criteria it uses to make the determination of whether a worker is an employee or an independent contractor.

The term "independent contractor" is used to refer to a business, a business owner with employees, or a self-employed business owner with no employees. This should not confuse the issue of employer responsibilities. If you have employees, you are responsible for them. If you are unsure of whether someone who performs services for you is an employee or and independent contractor, consult each agency listed in this section to be sure of which definitions apply for which purposes.

I-C-1. Unemployment Insurance

Unemployment insurance is a partial, temporary replacement of income to employees who lose their jobs through no fault of their own.

For the purposes of unemployment insurance coverage, employment is generally, any personal service performed for compensation unless excluded by law. A worker is usually an employee unless:

the worker is not directed or controlled as to how he or she does the job;
the work performed is unrelated to the business's normal operation; and
the worker is engaged in an independently established trade, occupation or profession.

As an employer, the business will generally qualify for coverage if: the business has $1500 or more total gross payroll in a calendar quarter; or it employs one or more worker(s) for 20 weeks or more during a calendar year. If the business has employees in domestic, agricultural or not-for-profit employment or if the business qualifies for FUTA (Federal Unemployment Tax Act) coverage the business may qualify under other provisions of the program. Contact the Department of Workforce Development at the address listed at the end of this section for more information.

Establishing State Employment Insurance Account: Employers must pay both FUTA (Federal Unemployment Tax Act) and SUTA (State Unemployment Tax Act) taxes. FUTA taxes are paid to the Internal Revenue Service. SUTA taxes are paid by establishing a state employment insurance account (file A Report to Determine Status Form 2837), and then filing quarterly payments (submit Form UC-1, Quarterly Contribution Report and Form UC-5A, Quarterly Payroll Report) to the Indiana Department of Workforce Development. For more information on state unemployment coverage you may obtain an Employer's Desk Guide by contacting the following office:

Department of Workforce Development (DWD)
10 North Senate Avenue
Indianapolis, Indiana 46204-2277
317-232-6702 or 800-437-9136
http://www.IN.gov/dwd

See Section IV Assistance, for services offered by DWD.

I-C-2. Worker's Compensation

All Indiana employers must obtain worker's compensation from a private insurance carrier. If an injury to an employee occurs and results in more than one day away from work, the employer must electronically file an Indiana Worker's Compensation First Report of Employee Injury, Illness.

Certification of Independent Contractor Status and Worker's Compensation Exemption:
Independent contractors in the construction and building trade are required to apply to the Indiana Department of Revenue for certification of independent contractor status. Clearance must first be received from the Department of Revenue before an application for exemption may be processed by the Worker's Compensation Board. The independent contractor must be certify that he or she has worker's compensation coverage for all employees in accordance with IC 22-3-2 through IC 22-3-6 and that the independent contractor desires to be exempt from being able to recover under the worker's compensation policy or self-insurance of an individual for whom the independent contractor will perform work only as an independent contractor. There is a seven (7) day waiting period before a certificate can be validated. The fee for each certificate is $20.

Indiana Department of Revenue
100 N. Senate Ave., N-105
Indianapolis, IN 46204
(317) 232-2165
http://www.IN.gov/dor

Worker's Compensation Board
402 W. Washington St. Room W196
Indianapolis, Indiana 46204
317-233-3808, 800-824-2667
http://www.IN.gov/workcomp/

I-C-3. Labor Laws

Information regarding any Indiana labor laws can be obtained by calling the individual numbers listed with each area, or by contacting:

Indiana Department of Labor
402 West Washington Street, Room W195
Indianapolis, IN 46204
317-232-2655
http://www.IN.gov/labor

I-C-3-a. Indiana Occupational Safety and Health Act (IOSHA)

The Indiana Department of Labor, IOSHA Division, is the sole compliance agency for occupational safety and health standards in the State of Indiana. The ultimate goal of IOSHA is the elimination of occupational injury, disease, and illness among Indiana workers. There are general industry standards that apply to any employer. Some specific industries have their own standards as well. Additionally, employees may not suffer dismissal or discrimination for making known a concern about workplace health or safety. For more information, contact IOSHA at 317-232-2693.

I-C-3-b. Indiana Worker's Safety Initiative (INSafe)

The INSafe (INSafe), a division of the Indiana Department of Labor, works with Indiana's employers, employees, labor unions, professional groups, trade organizations, and others to ensure workplace health and safety.

I-C-3-c. Child Labor Laws

The Indiana Department of Labor's Bureau of Child Labor enforces the Indiana child labor laws, which apply to minors ages 14 through 17 years. The Bureau oversees Employment Certificates, processes and acts on complaints of violations including, but not limited to, excessive hours, late hours, or hazardous occupations.

Generally, any minor between ages 14 and 17 years must obtain an Employment Certificate before beginning employment. Employment Certificates are issued by the school corporation the minor attends. For more information regarding the employment of a minor, call 317-232-2676 or 888-333-6967.

I-C-3-d. Age Discrimination

The Indiana Department of Labor's Employment Standards Division administers Indiana's Age Discrimination Act and investigates charges of age discrimination at state-covered businesses (generally, those employing fewer than 20 employees). Charges of age discrimination against employers of more than 20 must be filed with the Equal Employment Opportunity Commission (EEOC). For more information, call 317-232-2673.

I-C-3-e. Minimum Wage

The Employment Standards Division also administers the Indiana Minimum Wage Law, which applies to employers not subject to the federal Fair Labor Standards Act. Indiana's minimum wage is $5.85 per hour as of July 24, 2007. Following that on July 24, 2008 it will raise to $6.25 per hour and July 24, 2009 it will raise to $7.25 per hour. For more information regarding state and federal minimum wage laws, call 317-232-2655.

I-C-3-f. Wage Payment

Employees who are not paid all wages earned on the regular payday for the period in which they are earned may file a wage claim with the Employment Standards Division. If a valid complaint cannot be resolved administratively, the file is referred to a private attorney for action, and penalties up to double the amount due, plus attorneys fees and court costs may be assessed against the employer. For additional information call 317-232-2673.

I-C-4. NEW HIRE REPORTING

Effective October 1, 1997, under Indiana State Statute IC22.4.1-4-2. and the Federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) all public, private, non-profit, and government employers are required to report all new and rehired employees within 20 days of hire to the Indiana New Hire Reporting Center. Failure to report a new employee could result in a fine of $500. Web Site: http://www.in-newhire.com/ or for questions call 1-866-879-0198 or 317-612-3028.

I-C-5. POSTING REQUIREMENTS

Many state and federal employment laws have corresponding posting requirements. Please keep in mind that most of the posters have size requirements included in state or federal law, and many of the "combined posters" sold by private companies do not meet these size requirements. At least one copy of each poster is free to any employer, and the contact information is listed below with each one.

I-C-5-a. Minimum Wage

Federal:
Your Rights under the Fair Labor Standards Act and Employee Polygraph Protection Act Posters are needed by businesses including:

any enterprise with an annual gross income of at least $500,000;
a hospital, residential institution, or school;
a public agency;
anyone engaged in interstate commerce or the production of goods for interstate commerce;
any employer of domestic service workers earning at least $50 per quarter, or working more than 8 hours per week; or
others - contact the offices below or the Indiana Department of Labor office listed above to determine which rules cover your business.

Your Rights under the Family and Medical Leave Act Poster is needed by:

employers of 50 or more within 75 miles.

Contact: U.S. Department of Labor, Wage and Hour Division - 866-487-2365

State: Indiana Minimum Wage Law Poster needed by anyone not covered by Federal Minimum Wage and having 2 or more employees during any work week.

Contact: Indiana Department of Labor, Wage and Hour Division at 866-487-2365
317-232-2673

I-C-5-b. Equal Employment Opportunity

Federal: The Law Poster needed by:

private employers, state and local governments, and educational institutions;
anyone holding federal contracts or subcontracts; or
anyone receiving federal financial assistance.

Contact: Equal Employment Opportunity Commission
317-226-7212 or 800-669-4000

State: Equal Opportunity is the Law Poster needed by:

state, political, or civil subdivisions;
anyone employing six or more persons;
labor organizations; or
employment agencies.

Contact: Indiana Civil Rights Commission
317-232-2600 or 800-628-2909

I-C-5-c. Occupational Safety And Health

State: Safety and Health Protection on the Job Poster is needed by anyone with employees in Indiana. (NO FEDERAL POSTER IS NEEDED IN INDIANA)

Contact: Indiana Department of Labor, IOSHA Compliance Division
317-232-2694

I-C-5-d. Child Labor

State: The Notice of Teen Worker Hour Restrictions poster is required to be posted by all Indiana employers who employ teens ages 14 through 17 years of age. (Federal requirements are covered on the Fair Labor Standards Act poster listed under Minimum Wage.)

Contact: Indiana Department of Labor, Bureau of Child Labor 317-232-2675 or 888-833-6967
http://www.in.gov/labor/childlabor/pdf/hrposter.pdf click on "Forms" for poster.

I-C-5-e. Unemployment Compensation

State: Indiana Employment and Training Services Act Poster is needed by:

anyone with one or more employees in 20 different weeks or who paid $1500 or more in one quarter;
employers of ten or more people in agricultural labor for twenty or more weeks in the year, or who paid $20,000 or more in one quarter;
employers of domestic labor paid cash wages of $1000 or more in one quarter; or
state and political subdivisions and private schools.

Contact: Indiana Department of Workforce Development
317-232-6702 (Marion County) or 1-800-437-9136

I-C-5-f. Worker's Compensation

State: Worker's Compensation Notice is needed by almost anyone with employees. (This is not a poster provided by the Board, but posting must be similar in form to example given by the Board.)

Contact: Worker's Compensation Board
317-232-7101, 800-824-2667

I-C-5-g USERRA (Uniformed Services Employment and Reemployment Rights Act

Federal Protects the job rights of individuals who voluntarily or involuntarily leave employment positions to undertake military service. Also prohibits employers from discriminating against past and present members of the uniformed services, and applicants to the uniformed services

Contact: U.S. Department of Labor 866-487-2365

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