Employer Qualifications and Special Circumstances
Business Types
Employer Qualifications
To qualify as an employer for UI in Indiana, your business or organization must meet certain criteria set by DWD. Here are the main ways an entity qualifies as an employer:
General Qualification Criteria
- Regular Business Entity (Ind. Code § 22-4-7-1):
If you pay at least $1 in wages to a worker (not including agricultural, 501(c)(3) nonprofit, or domestic service employers), you are considered an employer. - Acquisition of a Business (Ind. Code § 22-4-7-2(a-b)):
If you acquire all or part of an existing business and continue its operations, you may be required to register as an employer.- If entities share substantial common ownership, management, or control, and all or part of the workforce moves from one entity to another entity, a mandatory transfer of experience balance has occurred and must be reported to DWD. If the receiving entity is not an employer at the time of the transfer, the receiving entity automatically becomes liable under the Act.
- Voluntary Election (Ind. Code § 22-4-7-2(d)):
Some entities not otherwise required to participate (like certain nonprofits or churches) can elect to provide UI coverage. - Agricultural Employers (Ind. Code § 22-4-7-2(e)):
If you pay $20,000 or more in cash wages in a calendar quarter or employ 10 or more workers for 20 weeks in a year, you qualify. - Governmental* (Ind. Code § 22-4-7-2(g)):
Government entities are covered from the first dollar of payroll.- Exclusions include: Elected officials; members of a legislative or judiciary body; members of the state National Guard or Air National Guard; employees serving on a temporary, emergency basis; individuals designated in major non-tenured policy-making or advisory positions.
*If the entity is a Governmental employer, they may opt to become a Reimbursable Employer as opposed to an employer paying quarterly premiums.
- 501(c)(3) Nonprofits* (Ind. Code § 22-4-7-2(h)):
- Nonprofits qualify if they employ four or more workers in 20 different weeks in a calendar year.
- Do not count workers that are excluded because of the work that they perform, such as members of the clergy, and do not count anyone if the entity is a church, convention of churches, association of churches, or an entity that is primarily operated for religious purposes and which is supervised, managed, controlled, or principally supported by a church, or by a convention / association of churches.
*If the entity is a Nonprofit employer, they may opt to become a Reimbursable Employer as opposed to an employer paying quarterly premiums.
- Domestic Employers (Ind. Code § 22-4-7-2(i)):
If you pay $1,000 or more in cash wages in a calendar quarter for domestic services in your home, you qualify. - Seasonal Employers:
- If you would like to be considered for seasonal status, see here.
