Indiana Payroll

Did you know that Indiana residents, including full-time, part-time, temporary, or seasonal workers, are subject to withholding on all income earned, no matter where the service was performed?

Indiana Income Tax Withholding

Indiana requires employers to withhold income tax from employee's compensation and remit withheld amounts to the Department of Revenue.

Employers are required to withhold from wages regardless of the number of employees or the place wage payments are made.

Reciprocal agreements with Kentucky, Michigan, Ohio, Pennsylvania, and Wisconsin provide that Indiana employers need not withhold Indiana tax from wages paid to employees who reside in these states, but employers are urged to withhold the appropriate tax applicable to the employees' state of legal residence.

Indiana Benefits

Indiana Voting Rights:

Employer Right To Schedule Voting Hours	Pay Deduction For Voting Time Leave
No	No

Indiana does not have a voting time leave law.

Indiana Compensation

Employees covered by Indiana's minimum wage law must be paid $5.15 an hour.

All employees are covered except for:

• individuals working in an executive, administrative, or professional capacity;
• outside salespersons;
• employees working on commission;
• individuals under 16 years of age;
• independent contractors;
• student nurses, hospital interns, and residents;
• students working for their schools;
• certain agricultural workers;
• individuals not employed for more than four weeks in any four consecutive three-month periods; and
• individuals subject to the Motor Carrier Act.

Indiana Payroll

Employers covered by Indiana's wage payment law must pay wages at least semimonthly or biweekly if requested. Payments must be made not more than 10 days following the close of a pay period.

Indiana Unemployment:

Taxable Wage Base ($000s)	New Employer Rate (% Taxable Wages)	Employee Tax Rate (% Taxable Wages)	Period Effective
7,000	2.7	None	Calendar Year 2007

Helpful Links for Indiana Payroll

Indiana Department of Revenue
Indiana Government Center North
100 N. Senate Avenue
Indianapolis, Indiana 46204
(317) 233-4016

Indiana Department of Workforce Development
10 N. Senate Avenue
Indianapolis, Indiana 46204
(317) 232-7436

Indiana Laws

Indiana Regulations

Tax Forms and Publications