Indiana Unemployment Compensation laws & HR compliance analysis

Indiana Unemployment Compensation: What you need to know

Virtually all Indiana employers are subject to unemployment insurance taxes (IN Code Sec. 22-4-1-1 et seq.). Coverage extends to:
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• Employers that are covered by the Federal Unemployment Tax Act (FUTA);
• Employers that have incurred liability for wages payable to one or more individuals;
• Employers that in any calendar quarter during the current or preceding calendar year paid wages of $1 or more (subject to certain exceptions);
• Anyone who acquired the business of a covered employer;
• The state and its political subdivisions;
• Religious, charitable, and other tax-exempt, nonprofit organizations that have four or more individuals employed for some portion of a day in each of 20 different weeks in either the current or preceding calendar year;
• Employers of agricultural workers, if they either paid wages of $20,000 or more for agricultural work in any quarter of either the current or preceding calendar year, or employed 10 or more workers for some portion of a day in each of 20 different calendar weeks in either the current or preceding calendar year;
• Employers of domestic workers, if they paid $1,000 or more for domestic work in any quarter of the current or preceding calendar year; and
• Employers that voluntarily elect to provide coverage for employees (IN Code Sec. 22-4-7-1).
The law excludes certain services from coverage, including, for example, services provided by:
• Students working for schools, colleges, or universities;
• Students working for work-study programs;
• Spouses of students working for schools;
• Insurance salespersons;
• Student nurses;
• Hospital interns;
• Certain newspaper distributors;
• Casual laborers;
• Part-time employees working for nonprofit entities; and
• Prison inmates (

Read more about Unemployment Compensation