Indiana Payroll, Unique Aspects of Indiana Payroll Law and Practice
Indiana payroll has some unique aspects and conditions. Some of the details and laws are set out in this article, including information regarding: tax withholding and reporting; Unemployment Insurance Taxes and Reports; wage and hour laws; and withholding of child support.
The Indiana State Agency that oversees the collection and reporting of state income taxes deducted from payroll checks is:
revenue Department
Compliance Division
Indiana Government. North Center
Indianapolis, IN 46204-2253
(317) 233-4018
http://www.ai.org/dor
Indiana requires that you use the Indiana form “WH-4, County State and Employee Withholding Exemption Certificate” instead of the federal W-4 form for Indiana state income tax withholding.
Not all states allow salary reductions made under Section 125 or 401 (k) cafeteria plans to be treated the same way the IRS code allows. In Indiana cafeteria plans: are not taxable for income tax calculation; not taxable for unemployment insurance purposes. The 401 (k) plan deferrals are: nontaxable for income taxes; taxable for unemployment purposes.
In Indiana, supplemental wages are taxed at a flat rate of 3.4%.
You can file your Indiana W-2 form by magnetic means if you wish.
The Indiana State Unemployment Insurance Agency is:
Department of Workforce Development
Indiana Government Center S.
10 N. Senate Ave., Room 331
Indianapolis, IN 46204-2277
(317) 232-6702
http://www.state.in.us/workcomp/index.html
The state of Indiana taxable wage base for unemployment purposes is wages up to $ 7,000.00.
Indiana has optional quarterly wage reporting on magnetic media.
Unemployment records must be kept in Indiana for a minimum period of five years. This information generally includes: name; Social Security number; hiring, rehiring and termination dates; wages by period; payroll pay periods and pay dates; date and circumstances of termination.
The Indiana state agency charged with enforcing state wage and hour laws is:
work Department
Division of hours and wages
402 West Washington St., Room W195
Indianapolis, IN 46204
(317) 232-2673
http://www.state.in.us/labor/
The minimum wage in Indiana is $ 5.15 per hour.
The general provision in Indiana for overtime pay at a non-FLSA-covered employer is one and a half times the regular rate after 40 hours per week.
The state of Indiana’s new hire reporting requirements are that each employer must report every new hire and rehire. The employer must report the elements required by the federal government of:
- Name of the employee
- Employee address
- Employee’s Social Security Number
- Name of the employee
- Employee address
- Employer’s Federal Employer Identification Number (EIN)
This information must be reported within 20 days after hiring or rehiring.
Information can be submitted as a W-4 or equivalent by mail, fax, or electronically.
There is a $ 500 fine for a late report in Indiana.
You can contact the Indiana New Hire Reporting Agency at 866-879-0198 or 317-612-3028 or on the web at http://www.in-newhire.com.
Indiana does not allow mandatory direct deposit
Indiana requires the following information on an employee’s pay stub:
Indiana requires the employee to receive a biweekly or biweekly payment; less often for FLSA-exempt employees.
Indiana requires that the lag time between the end of the pay period and the payment of wages to the employee not to exceed ten days.
Indiana payroll law requires that involuntarily laid off employees be paid their final pay before their next regular payday and that voluntarily laid off employees must be paid their final pay before the next regular payday.
The deceased employee’s salary must be paid when it is normally owed to the surviving spouse; if none, another beneficiary after an affidavit of right; equity not exceeding $ 25,000.
Indiana withholding laws require that unclaimed wages be paid to the state after one year.
In addition, the employer is required in Indiana to keep a record of wages abandoned and turned over to the state for a period of 10 years.
Indiana payroll law requires that no more than $ 3.02 be used as a tip credit.
In Indiana, the payroll laws covering mandatory breaks or meal breaks are only that minors under the age of 16 must have 30 minutes during the third through fifth hour of a shift that lasts at least 6 hours.
There is no provision in Indiana law regarding the retention of wage and hour records, so it is probably prudent to follow the FLSA guidelines.
The Indiana agency charged with enforcing child support laws and orders is:
Child support office
402 W. Washington St., room W360
Indianapolis, IN 46204
(317) 233-5437
http://www.in.gov/dcs/support/index.html
Indiana has the following provisions for child support deductions:
- When to start withholding? 14 business days after the withholding order is sent to the employer.
- When to send the payment? payday
- When to send the Notice of Termination? Within 10 days after termination.
- Maximum administrative fee? $ 2 per payment.
- Retention limits? Federal rules under CCPA.
Please note that this article is not updated for changes that can and will happen from time to time.
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