Rules For Unemployment Insurance Tax Liability
Indiana changed its unemployment compensation law in 2015. Following the change, Indiana, unlike most other states and the federal government, no longer requires that a minimum amount of wages must be paid before an employer is liable for UI tax. Instead, the law basically assumes that typical employers are liable simply if they pay any wages to at least one employee.
- paid wages of $1,500 or more in any calendar quarter, or
- had one or more employees at any time in each of twenty calendar weeks.
Different rules, not covered here, apply to agricultural workers, domestic workers, and employees of some non-profit organizations..
One piece of good news is that state UI tax payments generally can be credited against your FUTA taxes. However, because Indiana borrowed federal funds to pay UI benefits in the wake of the Great Recession, and is in the processing of paying back that loan, the amount of state UI taxes that currently can be credited against FUTA taxes is lower than it otherwise would be.
Wage Base And Tax Rates
UI tax is paid on each employee’s wages up to a maximum annual amount. Since 2011 in Indiana, that amount, known as the taxable wage base, has been stable at $9,500. Moreover, under current state law, that will remain the wage base until 2020. However, it’s always possible the lawand the amountcould change.
The state UI tax rate for new employers, also known as the standard rate, also may change from one year to the next. However, in recent years, the rate has been stable at 2.5%. The new employer rate usually remains in effect for at least 36 months. Established employers are subject to a lower or higher rate than new employers depending on an “experience rating.” This means, among other things, whether your business has ever had any employees who made claims for state unemployment benefits.
Where Does The Unemployment Rate Come From
Workforce agencies, such as the Indiana Department of Workforce Development , exist as part of state government in all 50 states and have cooperative data agreements with the Bureau of Labor Statistics of the U.S. Department of Labor. Each state has analysts who work cooperatively and uniformly in each of the employment and wage statistical program areas. The Local Area Unemployment Statistics is just one of several programs, and this is the program from which the monthly unemployment and labor force estimates are produced.
Each month, BLS announces the total number of employed and unemployed persons in the United States for the most recently completed month, along with many characteristics of such individuals. This LAUS program is a federal-state cooperative program and estimates several components of the labor force each month: civilian labor force, employment, unemployment and unemployment rate. The data can be drilled down to the county level, as well as cities with populations exceeding 25,000. Some states also publish data for smaller cities and towns, but this data can be highly volatile due to the small survey sample size. Indiana publishes data for some of these small areas throughout the state.
Instead, LAUS estimates are based on a model using three primary variables in addition to historical trends and current surveyed estimates:
As more data becomes available, we revise.
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Eligibility Requirements For Indiana Unemployment Benefits
The Indiana DWD determines eligibility for workers claiming unemployment benefits in the state. You must meet the following three eligibility requirements to collect unemployment benefits in Indiana:
- You must have earned at least a minimum amount in wages before you were unemployed.
- You must be unemployed through no fault of your own, as defined by Indiana law.
- You must be able and available to work, and you must be actively seeking employment.
Indiana Supply Chainexperience And Vulnerabilities
The pandemic has overburdened an already-thin labor force in the trucking industry. With vaccine mandates and the virus itself, the industry has experienced significant numbers of retirements and other labor force dropouts. Because over 71% of goods shipped throughout the country are shipped by truck, the shortage of drivers is accelerating supply chain bottlenecks.5 The freight demand has continued to challenge the remaining available drivers, causing wage inflation in the trucking industry, asserting more power for drivers, who may drive less and rest more, thereby shipping fewer goods, causing more supply chain bottlenecks.6 Because Indiana relies upon trucking to conduct its business as a manufacturing leader, this adds additional headwinds to growth.
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File Quarterly Ui Tax Reports And Payments
In Indiana, UI tax reports and payments are due on or before the last day of the month following the end of each calendar quarter. In other words:
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Quarter |
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You can file your reports and payments online or on paper. DWD recommends that reports be filed online. However, DWD also mails report forms to employers. Large employers also have the option to report using electronic media that option is not covered here.
To file online, use the Uplink Employer Self Service website. To file on paper, use Form UC-1, Quarterly Contribution Report, and Form UC-5, Quarterly Payroll Report. You should use the copies of these forms that DWD sends you. However, if necessary, you can download blank substitute forms from the Forms and Downloads section of the DWD website. You can make premium payments by check or electronic check without a fee. You also can pay by credit card, but there is a nominal fee.
As long as you have an active SUTA account, you must file reports every quarter by the due date. If you are liable for UI taxes for any part of a calendar year, you are liable for the entire year and must file quarterly reports for the entire year. If you believe your business no longer meets the qualifications for UI tax, you must notify DWD. In such cases, you must continue to file quarterly contribution and wage reports until you are notified that your account has been made inactive. You will be subject to a penalty if you fail to file.
Government Initiative To Control Unemployment
Several policies have been initiated by the government to reduce the unemployment problem in the economy. The policies to reduce unemployment are highlighted below:
Like the above-mentioned schemes, there are various other schemes launched by the Government of India in order to address the social and economic welfare of the citizens and the nation. The links of related schemes launched by the government are given below.
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Indiana Unemployment Rate Hits Historic Low Amid Increasingly Tight Labor Market
A sign at a job fair welcomes job seekers. According to December unemployment numbers, there are less people without jobs actively looking for one.
Indianas unemployment rate may have reached a historic low, reaching just 2.7 percent in December. More workers found employment, but the overall labor force is continuing a months-long downward slide.
Its still preliminary data, but it shows Indiana with the fewest number of workers having trouble finding jobs since the federal government began tracking state levels in the 1970s. But lately theres simply fewer people reporting availability to work each month.
Andrew Butters, economics professor at Indiana University, said those two things together indicate an even tighter labor market. He said research seems to show older workers may be retiring sooner and others are on the sidelines grappling with issues like child care.
People are either finding better or new jobs thats mostly reflective of the elevated quit rate but we also just have less Hoosiers in the labor market right now, he said.
The Bureau of Labor Statistics estimates theres still around 240,000 job openings in the state.
Contact reporter Justin at or follow him on Twitter at .
How Is The Unemployment Rate Revised
The LAUS preliminary estimates are revised each month to take advantage of the revised CES estimates, which are used as one major variable for the LAUS model, and of the additional unemployment claims dataanother major variable. Sometimes firms surveyed report their data late, and sometimes there are other delays in modeling or processing that contribute to these minor monthly revisions.
In addition, at the beginning of each year, the previous years estimates are thoroughly revised again through a process known as benchmarking. The Quarterly Census of Employment & Wages is known as the universe of employment and wage data. These data come from Unemployment Insurance covered employers, sometimes referred to as payroll employers, who provide quarterly employment levels and payroll to the states. The QCEW is a much more complete set of data that provides employment levels of all payroll establishments. The CES draws its sample of establishments from QCEW. The QCEW program publishes a quarterly count of employment and wages reported by employers, covering approximately 95 percent of wage and salary workers . Unfortunately, the QCEW is lagged by about six months . Once this complete data set becomes available, it is used to benchmark the employment levels used for the monthly estimates prior to beginning another year of estimating.
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Unemployment Rate Remains Unchanged Over The Month At 32 Percent
INDIANAPOLIS Indianas unemployment rate stands at 3.2 percent for April and remains lower than the national rate of 3.9 percent. With the exception of one month when it was equal , Indiana’s unemployment rate now has been below the U.S. rate for more than four years. The monthly unemployment rate is a U.S. Bureau of LaborStatistics indicator that reflects the number of unemployed people seeking employment within the prior four weeks as apercentage of the labor force.
Indianas labor force had a net increase of 11,655 overthe previous month. This was a result of a 737 increase in unemployed residents and an increase of 10,918 employed residents. Indiana’s total labor force, which includes both Hoosiers employed and those seeking employment, stands at 3.33 million, and the states 64.0 percent laborforce participation rate remains above the national rate of 62.8 percent.
In addition, Indiana’s initial unemployment insurance claims continue to be at historical lows.
Learnmore about how unemployment rates are calculated here: .
Employment by Sector
EDITORSNOTES:
Data are sourced from April Current Employment Statistics,Local Area Unemployment Statistics U.S. Bureau of Labor Statistics
Do You Meet The Minimum Earnings Requirement
Like every state, Indiana looks at your recent work history and earnings during a one-year “base period” to determine your eligibility for unemployment. . In Indiana, as in most states, the base period is the earliest four of the five complete calendar quarters before you filed your benefits claim. For example, if you filed your claim in December of 2019, the base period would be from July 1, 2018, through June 30, 2019.
To qualify for benefits in Indiana, you must meet all of the following four requirements:
- You must have earned at least $4,200 in the entire base period.
- You must have earned at least $2,500 in the last six months of the base period.
- In the entire base period, you must have earned at least 1.5 times your wages in the highest paid quarter of the base period.
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How To Appeal A Denial Of Unemployment Benefits In Indiana
If your unemployment claim is denied, you have ten days to appeal the decision to an administrative law judge. A hearing will be held on your appeal, typically by phone. You’ll receive information on the hearing, including how to participate and present evidence. If you are unhappy with the judge’s decision, you may file an appeal with the Unemployment Insurance Review Board within 18 days. If you are still dissatisfied, you may file an appeal in court.
For more information on the unemployment process, including current eligibility requirements and benefits amounts, visit the website of the Indiana Department of Workforce Development.
Types Of Unemployment In India
In India, there are seven types of unemployment. The types of unemployment are discussed below:
Aspirants preparing for UPSC Civil services exams or any government exams can check the relevant links given below to prepare more comprehensively
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Jobs And The Labor Force
Our current forecast has job creation continuing to exceed its pre-pandemic level through the end of next year. Employment growth over that six-quarter period is enough to restore employment to its 2019 fourth-quarter peak. That said, Indiana employment is still about 60,000 below our forecasts before the pandemic. That is, we believe 60,000 workers in Indiana have dropped out of the labor force, beyond previously anticipated unemployment and retirement expectations. This shortfall in the workforce mirrors the U.S., which has lost about 4.3 million workers from 2019 levelsâabout half attributable to a loss of labor force and half to unemployment. Indiana has been affected in this way somewhat less severely than at the national levelâIndiana has lost about 2.0% of its workforce vs. 2.3% for the U.S.
Last winter, we thought that slack in the labor market would provide opportunities for growth in 2021, but Indiana along with the rest of the country has reported labor shortagesâa reversal of expectations.
We hope to see the workforce recover in Indiana by the end of 2022, and yet many factors will affect the recovery, including stimulus, supply chain restoration, labor participation rates, and continued demand for goods and services.
There are several salient features on the employment front.
Indianas Outlook For 2022
Associate Professor of Finance, Division of Business, IUPUC
Co-Director, Indiana Business Research Center, Indiana University Kelley School of Business
Quotes and quips about forecast risks, uncertainty and the unprecedented economic conditions would not do justice to the uncharted terrain where the U.S. and Indiana economies find themselves.
Turn on the radio or peruse a news outlet, and it would seem that each day brings another type of economic fallout resulting from the COVID-19 pandemic.
This doesnt mean that all is lost, but it does make it a challenge to know how to prioritize the economic risks and potential threats. Well begin with the challenges and close with the better news, namely, we do foresee modest growth in the coming year.
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Current Unemployment Rates For States And Historical Highs/lows
Current Unemployment Rates for States and Historical Highs/Lows, SeasonallyAdjustedState
Preliminary
Note: Rates shown are a percentage of the labor force. Data refer to place of residence. Seriesbegin in January 1976. Historical highs and lows show the most recent month that a rate wasrecorded in the event of multiple occurrences. Estimates for at least the latest five years aresubject to revision early in the following calendar year. Estimates for the current month aresubject to revision the following month.
December 17, 2021
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Can A 50 Year Old Collect Social Security
For example, workers between the age of 50 and 54 may be able to collect disability benefits even if they can perform sedentary labor those 55 to 59 could be eligible even if able to perform light work and, in some circumstances, those age 60 to age 64 may be able to collect Social Security Disability even if able to
What Are Some Best Practices When Looking At The Unemployment Rate
Now that a better understanding of the unemployment data and caveats have been established, here are a few tips to keep in mind to best utilize unemployment data:
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