Payroll Indiana, Unique Aspects of Indiana Payroll Law and Practice

The Indiana State Agency that oversees the- Employer's Federal Employer Identification Number
collection and reporting of State income taxes(EIN)
deducted from payroll checks is:This information must be reported within 20 days of
Department of Revenuethe hiring or rehiring.
Compliance DivisionThe information can be sent as a W-4 or equivalent
Indiana Govt. Center Northby mail, fax or electronically.
Indianapolis, IN 46204-2253There is a $500 penalty for a late report in Indiana.
(317) 233-4018The Indiana new hire-reporting agency can be
Indiana requires that you use Indiana form "WH-4,reached at 866-879-0198 or 317-612-3028 or on the
Employee's Withholding Exemption and County Statusweb at
Certificate" instead of a Federal W-4 Form forIndiana does not allow compulsory direct deposit
Indiana State Income Tax Withholding.Indiana requires the following information on an
Not all states allow salary reductions made underemployee's pay stub:straight time and overtime
Section 125 cafeteria plans or 401(k) to be treated inpayhours workeditemized deductions
the same manner as the IRS code allows. In IndianaIndiana requires that employee be paid semimonthly
cafeteria plans are: not taxable for income taxor biweekly; less frequently for FLSA-exempt
calculation; not taxable for unemployment insuranceemployees.
purposes. 401(k) plan deferrals are: not taxable forIndiana requires that the lag time between the end
income taxes; taxable for unemployment purposes.of the pay period and the payment of wages to the
In Indiana supplemental wages are taxed at a 3.4%employee not exceed ten days.
flat rate.Indiana payroll law requires that involuntarily
You may file your Indiana State W-2s by magneticterminated employees must be paid their final pay by
media if you choose to.their next regular payday and that voluntarily
The Indiana State Unemployment Insurance Agencyterminated employees must be paid their final pay by
is:the next regular payday.
Department of Workforce DevelopmentDeceased employee's wages must be paid when
Indiana Government Center S.normally due to the surviving spouse; if none, other
10 N. Senate Ave., Rm. 331distributee after affidavit of right; estate not over
Indianapolis, IN 46204-2277$25,000.
(317) 232-6702Escheat laws in Indiana require that unclaimed wages
The State of Indiana taxable wage base forbe paid over to the state after one year.
unemployment purposes is wages up to $7,000.00.The employer is further required in Indiana to keep a
Indiana has optional reporting of quarterly wages onrecord of the wages abandoned and turned over to
magnetic media.the state for a period of 10 years.
Unemployment records must be retained in IndianaIndiana payroll law mandates no more than $3.02 may
for a minimum period of five years. This informationbe used as a tip credit.
generally includes: name; social security number; datesIn Indiana the payroll laws covering mandatory rest
of hire, rehire and termination; wages by period;or meal breaks are only that minors under 16 must
payroll pay periods and pay dates; date andhave 30 minutes during 3rd-5th hour of shift lasting at
circumstances of termination.least 6 hours.
The Indiana State Agency charged with enforcingThere is no provision in Indiana law concerning record
the state wage and hour laws is:retention of wage and hour records therefor it is
Department of Laborprobably wise to follow FLSA guidelines.
Wage and Hour DivisionThe Indiana agency charged with enforcing Child
402 West Washington St., Rm. W195Support Orders and laws is:
Indianapolis, IN 46204Bureau of Child Support
(317) 232-2673402 W. Washington St., Room W360
The minimum wage in Indiana is $5.15 per hour.Indianapolis, IN 46204
The general provision in Indiana concerning paying(317) 233-5437
overtime in a non-FLSA covered employer is one andIndiana has the following provisions for child support
one half times regular rate after 40-hour week.deductions:
Indiana State new hire reporting requirements are- When to start Withholding? 14 working days after
that every employer must report every new hire andthe withholding order is mailed to the employer.
rehire. The employer must report the federally- When to send Payment? payday
required elements of:- When to send Termination Notice? Within 10 days
- Employee's nameof termination.
- Employee's address- Maximum Administrative Fee? $2 per payment.
- Employee's social security number- Withholding Limits? Federal Rules under CCPA.
- Employer's namePlease note that this article is not updated for
- Employers addresschanges that can and will happen from time to time.