INDIANA UNEMPLOYMENT TAX – IMPORTANT!!
The Indiana Department of Workforce Development is now mailing out 2014 “Merit Rate
Notices” to all applicable Indiana employers. You and AccuPay need to take the following 2 action steps in response to your 2014 Merit Rate Notice:
SHOULD YOU MAKE A “VOLUNTARY PAYMENT”?
If you are eligible, your Merit Rate Notice will provide you an opportunity to “buy down” your scheduled 2014 Indiana unemployment tax rate to the next lowest schedule rate for 2014.
AccuPay will determine if your “voluntary payment” is a good deal. If we have received your 2014 Merit Rate statement from the Department of Workforce Development, we have already completed these calculations for your company. WE DO NOT CHARGE FOR OUR CALCULATIONS! If we have determined you will benefit by making the voluntary payment, you will receive a letter within the week explaining your next steps.
WE NEED YOUR 2014 TAX RATE NOTICE
AccuPay needs a copy of your 2014 “Merit Rate Notice” so we can collect the correct amount of Indiana unemployment tax from your first payroll in January 2014. You can fax a copy to us at 317-885-7591 or e-mail it to firstname.lastname@example.org.
A BIT MORE INFORMATION FROM THE INDIANA UNEMPLOYMENT DIVISION
- Employer tax rates for 2014 Indiana unemployment taxes will range from a low of .5% to the hightest rate of 9.4%. These rates are established based on each employer’s prior tax payments into the unemployment system as compared to benefits paid out to former employees.
- Indiana will again be a “credit reduction state” during 2014. This means that Indiana employers will pay federal unemployment tax at the normal rate of 6/10 of 1% during 2014, but most likely will also pay an additional “credit reduction tax” of 1.5% in late 2014.
- Indiana has advised that its 2014 credit reduction rate of 1.5% will be “capped” at that level for future years. Indiana now anticipates that the federal loan will be repaid in 2018, which will then eliminate Indiana’s status as a “credit reduction state”. Indiana employers will no longer pay the “catch up” year-end FUTA tax in year in which the federal loan is repaid.
If you have any questions about your 2014 unemployment taxes, call us at 317-885-7600. We appreciate
you as a client and look forward to partnering with you in 2014!
PayDay is an email communication of payroll news, legal updates and tax considerations intended to inform clients and colleagues of AccuPay about current payroll issues and planning techniques. You should consult with your CPA or tax advisor before implementing any ideas, comments or planning techniques.