§ 22-4-11-2 — Experience account; debit balance; rate of contributions; construction industry rate; deposits

(a) Except as provided in IC 22-4-10-6 and IC 22-4-11.5, the department 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any voluntary payments made in accordance with IC 22-4-10-5 or IC 22-4-10-5.5 (repealed):
(1) for each calendar year, an employer's rate shall be determined
in accordance with the rate schedules in section 3.3 or 3.5 of this
chapter; and
(2) for each calendar year, an employer's rate shall be two and
five-tenths percent (2.5%), except as otherwise provided in
subsection (g) or IC 22-4-37-3, unless:
(A) the employer has been subject to this article throughout the
thirty-six (36) consecutive calendar months immediately
preceding the computation date;
(B) there has been some annual payroll in each of the three (3)
twelve (12) month periods immediately preceding the
computation date; and
(C) the employer has properly filed all required contribution
and wage reports, and all contributions, penalties, and interest
due and owing by the employer or the employer's predecessors
have been paid.
(c) In addition to the conditions and requirements set forth and
provided in subsection (b)(2)(A), (b)(2)(B), and (b)(2)(C), an
employer's rate is equal to the sum of the employer's contribution rate
determined or estimated by the department under this article plus two
percent (2%) unless all required contributions 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 predecessor for periods before 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 department has given the
employer a written notice by mail of:
(A) the delinquency; or
(B) failure to file the reports;
whichever is the later date. The department or the department's
designee may waive the imposition of rates under this subsection if the
department finds the employer's failure to meet the deadlines was for
excusable cause. The department shall give written notice to the
employer before this additional condition or requirement shall apply.
An employer's rate under this subsection may not exceed twelve
percent (12%).
(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 and six-tenths percent (1.6%) 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: Subtract:
(A) the amount described in IC 22-4-10-4.5(e)(2), if any; from
(B) the total amount of benefits charged to the fund under
section 1 of this chapter.
STEP THREE: Multiply the quotient determined under STEP
ONE by the difference determined under STEP TWO.
(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.
(g) Except as otherwise provided in IC 22-4-37-3, this subsection,
instead of subsection (b)(2), applies to an employer in the construction
industry. As used in the subsection, "construction industry" means
business establishments whose proper primary classification in the
current edition of the North American Industry Classification System
Manual - United States, published by the National Technical
Information Service of the United States Department of Commerce is
23 (construction). For each calendar year beginning after December 31,
2013, an employer's rate shall be equal to the lesser of four percent
(4%) or the average of the contribution rates paid by all employers in
the construction industry subject to this article during the twelve (12)
months preceding the computation date, unless:
(1) the employer has been subject to this article throughout the
thirty-six (36) consecutive calendar months immediately
preceding the computation date;
(2) there has been some annual payroll in each of the three (3)
twelve (12) month periods immediately preceding the
computation date; and
(3) the employer has properly filed all required contribution and
wage reports, and all contributions, penalties, and interest due and
owing by the employer or the employer's predecessors have been
paid.
(h) The department shall satisfy the notice requirement in
subsection (c) by sending:
(1) physical mail to the employer's last known address; or
(2) electronic mail to an electronic mail address provided to the
department by the employer or a representative of the employer.
However, if electronic mail is used and the department does not receive
a receipt or electronic confirmation within five (5) days of
transmission, the notice is insufficient and notice must be sent by
physical mail as soon as practicable.
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; P.L.108-2006,
SEC.15; P.L.175-2009, SEC.12; P.L.110-2010, SEC.26; P.L.1-2010,
SEC.86; P.L.2-2011, SEC.9; P.L.42-2011, SEC.39; P.L.6-2012,
SEC.153; P.L.154-2013, SEC.3; P.L.183-2015, SEC.2; P.L.171-2016,
SEC.7; P.L.200-2025, SEC.6.