Rate Computation
Premiums are based on the first $9,500 of gross wages per employee per calendar year.
| Rate Type | Rate | Maximum cost per employee (if paid timely) |
| Minimum | 0.50% | $47.50 |
| Typical New Employer | 2.50% | $237.50 |
| Maximum in good standing | 7.40% | $703.00 |
| Maximum delinquent rate | 9.40% | $902.50 |
State Unemployment Tax Act (SUTA) Indiana Code Title 22 Article 4
New employers and employers restarting Indiana employment after a break of one or more years have fixed rates by industry. Employers that have been operating for three or more years are rated based on their usage of the unemployment system and their potential liability for claim filing.
An employer’s rate is determined by variables such as the number of former employees receiving benefits, the employer’s total payroll subject to UI contribution, voluntary payments, and the transfer of all or part of an existing Indiana business.
Premiums are paid by the employer without deduction from the wages of an employee. Employers are not allowed to actively discourage or work to prevent former employees from applying for benefits. Employers are expected to promptly respond to any request for information about the earnings or separation of their former employees.
Employers may find their rate increases if they routinely fail to respond to DWD attempts at contact, resulting in inaccurate benefit decisions. |
Indiana also adds percentage points to the employer’s rate for missing or inadequate reports, outstanding assessments, unpaid predecessor liabilities, and failure to report mandatory transfers under the SUTA Dumping Prevention Act. Each type of violation is explained in full detail in this guide.
