The Indiana Department of Workforce Development, recently drafted 2023 “Merit Rate Notices” for all applicable Indiana employers. These notices are scheduled to go out by mail in early January. Tax agencies in other states will be sending these notices soon if they haven’t already. Here are steps that you and AccuPay need to take to ensure accurate tax reporting in 2023.
We Need Your 2023 Tax Rate and Frequency Notices
AccuPay needs copies of your 2023 “Merit Rate Notices” from every state where your employees work so we can collect the correct amount of unemployment tax from your first payroll in January 2023. You can find your 2023 notice now on DWD’s website, Uplink, under “Correspondence History.” (See below if you need login help.) You can fax a copy to us at 317-885-7591 or e-mail it to email@example.com. In addition, please send us copies of any notices pertaining to withholding tax frequency. The IRS has already sent these letters, but you may also receive them from any state where your employees live and/or work. (Most states will only send if there is a change in frequency.) It is very important that these notices be forwarded to AccuPay!
Should You Make a “Voluntary Payment”?
If you are eligible, your Merit Rate Notice will provide you an opportunity to “buy down” your scheduled 2023 Indiana unemployment tax rate to the next lowest schedule rate for 2023. Notices with a buy-down option will show a dollar amount in the box titled “Voluntary Payment Offer.” Other states’ merit rate notices may include similar buy-down options.
AccuPay will determine if your “voluntary payment” is a good deal. If you receive your 2023 Merit Rate statement from Indiana Department of Workforce Development or another state’s tax agency indicating a voluntary payment option, please forward to Accupay, and we will complete these calculations for your company. WE DO NOT CHARGE FOR OUR CALCULATIONS!
If based on AccuPay’s calculations, you determine you would like to make the Indiana voluntary payment, this will need to be done via the Uplink website at https://uplink.in.gov/ESS. The Department of Workforce Development will not accept paper checks. (Please read merit rate notices from other states closely to determine how voluntary payments must be remitted, and when they are due.)
If you do not know your Uplink login, you can click either “Register” or “First Time User” to create one. You will need your company’s FEIN, DWD Account Number (found at the top of your merit rate notice), and gross wages from the third quarter 2022. All of this information can be found on your third quarter 2022 UC-5A. Once you login to Uplink, click the Make a Payment tab on the left side of the screen. The voluntary payment amount should pre-populate. Confirm the amount and click “Make a Payment.” You will then be led to a secure site where you can initiate a credit card or electronic check payment. (Fees may apply for credit card payments.) Be sure that the effective date is on or before the February 1, 2023 deadline. Late payments will NOT result in a lower merit rate and will NOT be refunded by the DWD. (See the “fine print” on the back of your merit rate notice for more information.) Be sure to print or save your payment confirmation and forward a copy to AccuPay. We will continue to withhold unemployment tax at the “pre-buydown” rate until we receive this confirmation from you.
If you have any questions about your 2023 unemployment taxes, call us at 317-885-7600. We appreciate you as a client and look forward to partnering with you in 2023!
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.