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Payroll Indiana, Unique Aspects of Indiana Payroll Law and Practice

The Indiana State Agency that oversees the
collection and reporting of State incomeThere is a $500 penalty for a late report in
taxes  deducted  from  payroll  checks  is:Indiana.
Department  of  RevenueThe Indiana new hire-reporting agency can be
reached at 866-879-0198 or 317-612-3028 or on
Compliance  Divisionthe  web  at
Indiana  Govt.  Center  NorthIndiana does not allow compulsory direct
deposit
Indianapolis,  IN  46204-2253
Indiana requires the following information on
(317)  233-4018an employee's pay stub:straight time and
overtime  payhours  workeditemized deductions
Indiana requires that you use Indiana form
"WH-4, Employee's Withholding Exemption andIndiana requires that employee be paid
County Status Certificate" instead of asemimonthly or biweekly; less frequently for
Federal W-4 Form for Indiana State Income TaxFLSA-exempt  employees.
Withholding.
Indiana requires that the lag time between
Not all states allow salary reductions madethe end of the pay period and the payment of
under Section 125 cafeteria plans or 401(k)wages  to  the  employee not exceed ten days.
to be treated in the same manner as the IRS
code allows. In Indiana cafeteria plans are:Indiana payroll law requires that
not taxable for income tax calculation; notinvoluntarily terminated employees must be
taxable for unemployment insurance purposes.paid their final pay by their next regular
401(k) plan deferrals are: not taxable forpayday and that voluntarily terminated
income taxes; taxable for unemploymentemployees must be paid their final pay by the
purposes.next  regular  payday.
In Indiana supplemental wages are taxed at aDeceased employee's wages must be paid when
3.4%  flat  rate.normally due to the surviving spouse; if
none, other distributee after affidavit of
You may file your Indiana State W-2s byright;  estate  not  over  $25,000.
magnetic  media  if  you  choose  to.
Escheat laws in Indiana require that
The Indiana State Unemployment Insuranceunclaimed wages be paid over to the state
Agency  is:after  one  year.
Department  of  Workforce  DevelopmentThe employer is further required in Indiana
to keep a record of the wages abandoned and
Indiana  Government  Center  S.turned over to the state for a period of 10
years.
10  N.  Senate  Ave.,  Rm.  331
Indiana payroll law mandates no more than
Indianapolis,  IN  46204-2277$3.02  may  be  used  as  a  tip  credit.
(317)  232-6702In Indiana the payroll laws covering
mandatory rest or meal breaks are only that
The State of Indiana taxable wage base forminors under 16 must have 30 minutes during
unemployment purposes is wages up to3rd-5th hour of shift lasting at least 6
$7,000.00.hours.
Indiana has optional reporting of quarterlyThere is no provision in Indiana law
wages  on  magnetic  media.concerning record retention of wage and hour
records therefor it is probably wise to
Unemployment records must be retained infollow  FLSA  guidelines.
Indiana for a minimum period of five years.
This information generally includes: name;The Indiana agency charged with enforcing
social security number; dates of hire, rehireChild  Support  Orders  and  laws  is:
and termination; wages by period; payroll pay
periods and pay dates; date and circumstancesBureau  of  Child  Support
of  termination.
402  W.  Washington  St.,  Room  W360
The Indiana State Agency charged with
enforcing  the  state  wage and hour laws is:Indianapolis,  IN  46204
Department  of  Labor(317)  233-5437
Wage  and  Hour  DivisionIndiana has the following provisions for
child  support  deductions:
402  West  Washington  St.,  Rm.  W195
- When to start Withholding? 14 working
Indianapolis,  IN  46204days after the withholding order is mailed to
the  employer.
(317)  232-2673
-  When  to  send  Payment? payday
The minimum wage in Indiana is $5.15 per
hour.- When to send Termination Notice? Within
10  days  of  termination.
The general provision in Indiana concerning
paying overtime in a non-FLSA covered- Maximum Administrative Fee? $2 per
employer is one and one half times regularpayment.
rate  after  40-hour  week.
- Withholding Limits? Federal Rules under
Indiana State new hire reporting requirementsCCPA.
are that every employer must report every new
hire and rehire. The employer must reportPlease note that this article is not updated
the  federally  required  elements  of:for changes that can and will happen from
time  to  time.
-  Employee's  name
Charles J. Read, CPA has been in the payroll,
-  Employee's  addressaccounting and tax business for 30 years,the
last fifteen in private practice. Mr. Read
-  Employee's  social  security  numberis the author of "Tax and Accounting Issuesin
Forming  a  New  Business."
-  Employer's  name
To find professional payroll services at a
-  Employers  addressbudget price go to paperless payroll
company.
- Employer's Federal Employer Identification
Number (EIN)For a full service payroll bureau with CPA's
on  staff  visit .
This information must be reported within 20
days  of  the  hiring  or  rehiring.See an excerpt of Mr. Read's interviews from
William Shatner's "Heartbeat of
The information can be sent as a W-4 orAmerica"television show on the web sites
equivalent  by  mail,  fax or electronically.linked above.



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