Why is it important that Indiana focus on SUTA Dumping?
Under the experience rating system, employers pay unemployment taxes at rates commensurate with claims activities by their employees. Employers with high unemployment activity pay higher unemployment tax rates, and employers with lower activity pay less. Employers who engage in SUTA Dumping (or other tax manipulation schemes) to avoid paying their fair share unfairly shift their costs to other employers. SUTA dumping is harmful because it: • Compromises the integrity of the UI system. • Results in an uneven playing field. • Adversely affects tax rates for all employers. • Costs the UI Trust Fund millions of dollars each year.
