Your Michigan City guide
 

Welcome to our Michigan City Archive. Have fun browsing!

 

Article #281: Payroll Indiana, Unique Aspects of Indiana Payroll Law and Practice

(Browse for more articles)

 
The Indiana State Agency that oversees The Indiana new hire-reporting agency can
the collection and reporting of State be reached at 866-879-0198 or
income taxes deducted from payroll checks 317-612-3028 or on the web at
is: Indiana does not allow compulsory direct
Department of Revenue deposit
Compliance Division Indiana requires the following
Indiana Govt. Center North information on an employee's pay
Indianapolis, IN 46204-2253 stub:straight time and overtime payhours
(317) 233-4018 workeditemized deductions
Indiana requires that you use Indiana Indiana requires that employee be paid
form "WH-4, Employee's Withholding semimonthly or biweekly; less frequently
Exemption and County Status Certificate" for FLSA-exempt employees.
instead of a Federal W-4 Form for Indiana Indiana requires that the lag time
State Income Tax Withholding. between the end of the pay period and the
Not all states allow salary reductions payment of wages to the employee not
made under Section 125 cafeteria plans or exceed ten days.
401(k) to be treated in the same manner Indiana payroll law requires that
as the IRS code allows. In Indiana involuntarily terminated employees must
cafeteria plans are: not taxable for be paid their final pay by their next
income tax calculation; not taxable for regular payday and that voluntarily
unemployment insurance purposes. 401(k) terminated employees must be paid their
plan deferrals are: not taxable for final pay by the next regular payday.
income taxes; taxable for unemployment Deceased employee's wages must be paid
purposes. when normally due to the surviving
In Indiana supplemental wages are taxed spouse; if none, other distributee after
at a 3.4% flat rate. affidavit of right; estate not over
You may file your Indiana State W-2s by $25,000.
magnetic media if you choose to. Escheat laws in Indiana require that
The Indiana State Unemployment Insurance unclaimed wages be paid over to the state
Agency is: after one year.
Department of Workforce Development The employer is further required in
Indiana Government Center S. Indiana to keep a record of the wages
10 N. Senate Ave., Rm. 331 abandoned and turned over to the state
Indianapolis, IN 46204-2277 for a period of 10 years.
(317) 232-6702 Indiana payroll law mandates no more than
The State of Indiana taxable wage base $3.02 may be used as a tip credit.
for unemployment purposes is wages up to In Indiana the payroll laws covering
$7,000.00. mandatory rest or meal breaks are only
Indiana has optional reporting of that minors under 16 must have 30 minutes
quarterly wages on magnetic media. during 3rd-5th hour of shift lasting at
Unemployment records must be retained in least 6 hours.
Indiana for a minimum period of five There is no provision in Indiana law
years. This information generally concerning record retention of wage and
includes: name; social security number; hour records therefor it is probably wise
dates of hire, rehire and termination; to follow FLSA guidelines.
wages by period; payroll pay periods and The Indiana agency charged with enforcing
pay dates; date and circumstances of Child Support Orders and laws is:
termination. Bureau of Child Support
The Indiana State Agency charged with 402 W. Washington St., Room W360
enforcing the state wage and hour laws Indianapolis, IN 46204
is: (317) 233-5437
Department of Labor Indiana has the following provisions for
Wage and Hour Division child support deductions:
402 West Washington St., Rm. W195 - When to start Withholding? 14
Indianapolis, IN 46204 working days after the withholding order
(317) 232-2673 is mailed to the employer.
The minimum wage in Indiana is $5.15 per - When to send Payment? payday
hour. - When to send Termination Notice?
The general provision in Indiana Within 10 days of termination.
concerning paying overtime in a non-FLSA - Maximum Administrative Fee? $2 per
covered employer is one and one half payment.
times regular rate after 40-hour week. - Withholding Limits? Federal Rules
Indiana State new hire reporting under CCPA.
requirements are that every employer must Please note that this article is not
report every new hire and rehire. The updated for changes that can and will
employer must report the federally happen from time to time.
required elements of: Charles J. Read, CPA has been in the
- Employee's name payroll, accounting and tax business for
- Employee's address 30 years,the last fifteen in private
- Employee's social security number practice. Mr. Read is the author of "Tax
- Employer's name and Accounting Issuesin Forming a New
- Employers address Business."
- Employer's Federal Employer To find professional payroll services at
Identification Number (EIN) a budget price go to paperless payroll
This information must be reported within company.
20 days of the hiring or rehiring. For a full service payroll bureau with
The information can be sent as a W-4 or CPA's on staff visit .
equivalent by mail, fax or See an excerpt of Mr. Read's interviews
electronically. from William Shatner's "Heartbeat of
There is a $500 penalty for a late report America"television show on the web sites
in Indiana. linked above.






1- A- B- 2- 3- 4- 5- 6- 7- 8- 9- 10- 11- 12- 13- 14- 15- 16- 17- 18- 19- 20- 21- 22- 23- 24- 25- 26- 27- 28- 29- 30- 31- 32- 33- 34- 35- 36- 37- 38- 39- 40- 41- 42- 43- 44- 45- 46- 47- 48- 49-