Section 646IAC5-2-4. Estimation of wages

   (a) Pursuant to the department's authority set forth in IC 22-4-11-4, if an employer fails to timely submit quarterly reports, the department will investigate and, if necessary, estimate employer wages, and resulting contributions. The following circumstances relate to a wage estimation by the department:

(1) An employer's contacting other state agencies regarding unemployment issues does not constitute the submission of reports required by the department.

(2) An employer's failure to claim certified mail notices sent by the department does not constitute a lack of notice to the employer.

  (b) Once an auditor has determined that there is sufficient reason to begin the estimation process, the department will send the employer a penalty letter by certified mail, return receipt requested. The penalty letter will:

(1) state the quarter or quarters and year or years of the missing report or reports; and

(2) inform the employer that it has fifteen (15) days to produce the reports or the department will estimate the data.

If the employer does not submit the reports in question, the department will estimate the employer wages and compute the resulting contributions, penalty, and interest for the covered quarters.

  (c) After the department has done a wage estimation, and liability computation, the department will send the employer a notice and demand for payment by certified mail, return receipt requested. The notice and demand sets forth the quarter or quarters and year or years in question, and the contributions, penalties, and interest due to the department. The penalties include:

(1) a twenty-five dollar ($25) fine for failure to file the wage report within ten (10) days of the agency's written request; and

(2) a twenty-five dollar ($25) fine for the failure to file the contribution report within ten (10) days of the agency's written request.

The employer has fifteen (15) days from the mailing date of the notice of demand within which to file a timely protest.

  (d) With regard to employer protests, the following:

(1) If the employer files the actual reports in a timely manner, the department will adjust the employer's account to reflect the information provided. However, the twenty-five dollar ($25) penalties for failure to timely file the reports will not be removed.

(2) If the employer files the actual reports after the expiration of the time for a timely protest, the estimation can be adjusted upward based upon the actual information submitted by the employer; however, it will not be adjusted downward unless the employer meets the following two (2) statutory conditions:

(A) The employer produces true and actual reports.

(B) The employer establishes reasonable cause for its failure to timely file the required reports.

(Department of Workforce Development; 646 IAC 5-2-4; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)