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