Notices FAQs
- I received a notice, why do I owe money?
If you have received a notice indicating a balance due, it could be for one of several reasons:
1. Outstanding Liabilities: Payments are automatically applied to any prior outstanding liabilities on your account, unless the payment was made using the immediate payment option in ESS. This does not include liabilities in an active tax warrant.
2. Penalties and Interest: You may have received a notice due to penalties and interest assessed for failing to pay by the due date, filing an inadequate report (e.g., invalid SSN for a reported worker), or not paying at the correct merit rate.
Important Reminder: DWD requires electronic reporting and payment, per regulation. If you choose to mail a payment, it must be received by DWD by the due date, as the postmark date of the payment is not evaluated for timeliness. Employers choosing to mail payments do so at their own risk.
For any questions regarding a notice about a balance due, please contact Employer Services at 800-891-6499.
- Merit Rate Notice: what is this? why did I get this? why did my rate go up? how can I bring it back down? What is a merit rate and how is it calculated?
What is a merit rate?
- A DWD merit rate is the unemployment insurance (UI) tax rate assigned to Indiana employers by the Department of Workforce Development (DWD) based on their individual experience with unemployment claims. This rate determines how much an employer pays in state unemployment taxes.
How is a merit rate calculated?
- The merit rate is calculated annually and is based on your business’s history of paying unemployment taxes and the amount of unemployment benefits paid to your former employees.
- Employers with fewer claims and timely payments generally receive a lower (better) merit rate.
- Employers with more claims or late/unpaid taxes may receive a higher (worse) merit rate.
Why Did You Get a Notice?
- DWD sends a Merit Rate Notice each year to inform you of your new UI tax rate for the upcoming year.
- You may also receive a notice if your rate changes due to delinquent reports, past due liabilities, or changes in your account status.
If you have outstanding reports or liabilities, your rate may be increased by 2% as a penalty.
What to Do:
- Review the notice for details about your new rate and any reasons for changes.
If you have questions, contact the DWD Employer Call Center at 1-800-891-6499.
- Why am I receiving an initial notice for UI benefits on an employee who worked here (up to 18 months ago)?
You are receiving an initial notice for unemployment insurance (UI) benefits for an employee who worked for you up to 18 months ago because Indiana’s unemployment system uses a “base period” to determine eligibility.
The base period is typically the first four of the last five completed calendar quarters before the claim is filed. This means wages paid by your business up to 18 months prior to the claim can be used to determine the employee's eligibility.
As a base period employer, you are required to provide information about the employee’s wages and the reason for separation, even if the separation happened many months ago.
What You Should Do:
1. Review the notice carefully.
2. Respond through Uplink ESS with accurate information about the employee’s work history and reason for separation.For more details, see the Employer Self Service FAQ and the Employer Guide.
- I have received a charge statement and I'm not sure what I am supposed to do.
A charge statement from the Indiana Department of Workforce Development (DWD) shows unemployment benefits that have been charged to your employer account.
Here’s what you should do:
1. Review the Statement:
Carefully check the details of the charge statement. It lists former employees who have received unemployment benefits and the amounts charged to your account.2. Verify Accuracy:
Make sure the information is correct. Confirm that the individuals listed were your employees and that the charges match your records.3. Protest If Needed:
If you believe any charges are incorrect (for example, if the person did not work for you or was separated for a reason that should not result in charges), you can file a protest. Instructions for protesting are usually included with the statement or can be found in your Uplink Employer Self-Service (ESS) account.4. Respond Promptly:
There is a deadline to file a protest, typically within 20 days of the statement date. Submit your protest through Uplink ESS or as directed on the statement.5. Keep Records:
Save a copy of the charge statement and any correspondence for your records.For more details, see the Employer Self Service FAQ and the Employer Guide.
