Section 20-26-5-37.2 - School corporation delinquencies on FICA taxes(a) This section applies to school corporations and charter schools that are required to do any of the following: (1) Pay to the Internal Revenue Service employer and employee taxes imposed after June 30, 2016, under FICA.(2) Pay to the department of state revenue amounts that are deducted and withheld as taxes after June 30, 2016, under IC 6-3-4-8.(b) As used in this section, "delinquency" or "delinquent" refers to either of the following: (1) Failing to pay FICA taxes within thirty (30) days after the taxes are due.(2) Failing to pay to the department of state revenue amounts that are deducted and withheld as taxes under IC 6-3-4-8 after June 30, 2016, (including any known accrued interest and penalties on those taxes) within thirty (30) days after the payment of those withheld taxes is due.(c) As used in this section, "due date" refers to:(1) the date by which employer and employee taxes owed by a school corporation or a charter school under FICA must be paid to the Internal Revenue Service; or(2) the date by which amounts that are deducted and withheld as taxes under IC 6-3-4-8 must be paid to the department of state revenue; as applicable.
(d) As used in this section, "FICA" refers to the Federal Insurance Contributions Act.(e) As used in this section, "FICA taxes" refers to employer and employee taxes imposed after June 30, 2016, under FICA. The term includes any known accrued interest and penalties.(f) If a school corporation or a charter school:(1) fails to pay FICA taxes in full to the Internal Revenue Service within thirty (30) days after the due date; or(2) fails to pay amounts that are deducted and withheld as taxes under IC 6-3-4-8 after June 30, 2016, (including any known accrued interest and penalties on those taxes) within thirty (30) days after the due date; the school business official or school financial officer responsible for ensuring that a school corporation's or charter school's tax payments are made shall report the school corporation's or charter school's delinquency to the governing body of the school corporation or charter school not later than forty-five (45) days after the due date. The school official or school financial officer shall make a report under this subsection each time the school corporation or charter school fails to pay FICA taxes within thirty (30) days after the due date or fails to pay amounts that are deducted and withheld as taxes under IC 6-3-4-8 (including any known accrued interest and penalties on those taxes) within thirty (30) days after the due date.
(g) Not later than thirty (30) days after receiving a report under subsection (f), the governing body of the school corporation or charter school shall hold a public meeting at which:(1) the governing body shall provide a report on the school corporation's or charter school's failure to pay:(B) amounts that are deducted and withheld as taxes under IC 6-3-4-8; as applicable; and
(2) interested parties are permitted to testify regarding the school corporation's or charter school's failure to pay FICA taxes or amounts that are deducted and withheld as taxes under IC 6-3-4-8 (as applicable).(h) This subsection applies if, within a three hundred sixty-five (365) day period, a school corporation or charter school is:(1) delinquent in paying FICA taxes two (2) or more times; or(2) delinquent in paying amounts that are deducted and withheld as taxes under IC 6-3-4-8 after June 30, 2016, two (2) or more times. Not later than forty-five (45) days after a school corporation or charter school is delinquent for the second or subsequent time, the school corporation or charter school shall notify the department, the budget agency, and the distressed unit appeal board of the delinquency.
Added by P.L. 127-2016, SEC. 16, eff. 7/1/2016.