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Payroll Indiana, Unique Aspects of Indiana Payroll Law and Practice

The Indiana State Agency that oversees theEmployers  address
collection and reporting of State income
taxes  deducted  from  payroll  checks  is:Employer's Federal Employer Identification
Number  (EIN)
Department  of  Revenue
This information must be reported within 20
Compliance  Divisiondays  of  the  hiring  or  rehiring.
Indiana  Govt.  Center  NorthThe information can be sent as a W-4 or
equivalent  by  mail,  fax or electronically.
Indianapolis,  IN  46204-2253
There is a $500 penalty for a late report in
(317)  233-4018Indiana.
Indiana requires that you use Indiana formThe Indiana new hire-reporting agency can be
"WH-4, Employee's Withholding Exemption andreached at 866-879-0198 or 317-612-3028 or on
County Status Certificate" instead of athe  web  at
Federal W-4 Form for Indiana State Income Tax
Withholding.Indiana does not allow compulsory direct
deposit
Not all states allow salary reductions made
under Section 125 cafeteria plans or 401(k)Indiana requires the following information on
to be treated in the same manner as the IRSan employee's pay stub:straight time and
code allows. In Indiana cafeteria plans are:overtime  payhours  workeditemized deductions
not taxable for income tax calculation; not
taxable for unemployment insurance purposes.Indiana requires that employee be paid
401(k) plan deferrals are: not taxable forsemimonthly or biweekly; less frequently for
income taxes; taxable for unemploymentFLSA-exempt  employees.
purposes.
Indiana requires that the lag time between
In Indiana supplemental wages are taxed at athe end of the pay period and the payment of
3.4%  flat  rate.wages  to  the  employee not exceed ten days.
You may file your Indiana State W-2s byIndiana payroll law requires that
magnetic  media  if  you  choose  to.involuntarily terminated employees must be
paid their final pay by their next regular
The Indiana State Unemployment Insurancepayday and that voluntarily terminated
Agency  is:employees must be paid their final pay by the
next  regular  payday.
Department  of  Workforce  Development
Deceased employee's wages must be paid when
Indiana  Government  Center  S.normally due to the surviving spouse; if
none, other distributee after affidavit of
10  N.  Senate  Ave.,  Rm.  331right;  estate  not  over  $25,000.
Indianapolis,  IN  46204-2277Escheat laws in Indiana require that
unclaimed wages be paid over to the state
(317)  232-6702after  one  year.
The State of Indiana taxable wage base forThe employer is further required in Indiana
unemployment purposes is wages up toto keep a record of the wages abandoned and
$7,000.00.turned over to the state for a period of 10
years.
Indiana has optional reporting of quarterly
wages  on  magnetic  media.Indiana payroll law mandates no more than
$3.02  may  be  used  as  a  tip  credit.
Unemployment records must be retained in
Indiana for a minimum period of five years.In Indiana the payroll laws covering
This information generally includes: name;mandatory rest or meal breaks are only that
social security number; dates of hire, rehireminors under 16 must have 30 minutes during
and termination; wages by period; payroll pay3rd-5th hour of shift lasting at least 6
periods and pay dates; date and circumstanceshours.
of  termination.
There is no provision in Indiana law
The Indiana State Agency charged withconcerning record retention of wage and hour
enforcing  the  state  wage and hour laws is:records therefor it is probably wise to
follow  FLSA  guidelines.
Department  of  Labor
The Indiana agency charged with enforcing
Wage  and  Hour  DivisionChild  Support  Orders  and  laws  is:
402  West  Washington  St.,  Rm.  W195Bureau  of  Child  Support
Indianapolis,  IN  46204402  W.  Washington  St.,  Room  W360
(317)  232-2673Indianapolis,  IN  46204
The minimum wage in Indiana is $5.15 per(317)  233-5437
hour.
Indiana has the following provisions for
The general provision in Indiana concerningchild  support  deductions:
paying overtime in a non-FLSA covered
employer is one and one half times regularWhen to start Withholding? 14 working days
rate  after  40-hour  week.after the withholding order is mailed to the
employer.
Indiana State new hire reporting requirements
are that every employer must report every newWhen  to  send  Payment?  payday
hire and rehire. The employer must report the
federally  required  elements  of:When to send Termination Notice? Within 10
days  of  termination.
Employee's  name
Maximum  Administrative  Fee? $2 per payment.
Employee's  address
Withholding Limits? Federal Rules under CCPA.
Employee's  social  security  number
Please note that this article is not updated
Employer's  namefor changes that can and will happen from
time to time.



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