Withholding Taxes: Indiana
Federal law and guidance on this subject should be reviewed together with this section.
Authors: Stuart R. Buttrick, Susan W. Kline and Tareen Zafrullah, Faegre Baker Daniels LLP
- Generally, an employee is subject to income tax withholding in Indiana if the employee works in Indiana. Special rules apply to employees who live in states with a reciprocal agreement with Indiana. See Withholding on Residents, Nonresidents and Expatriates.
- Indiana employers must maintain a Form WH-4, Employee's Withholding Exemption and County Status Certificate, for each employee working in Indiana. See Employee's Withholding Allowance Certificate.
- Employers must withhold on supplemental wages, such as bonuses, at a flat rate. See Supplemental Wages.
- Indiana employers must provide federal Form W-2, Wage and Tax Statement, to each employee annually by January 31. See Form W-2 Requirements.
- Indiana employers must keep records of all documents needed to determine tax liability for a certain number of years. See Recordkeeping Requirements.
- Indiana has requirements pertaining to a Local Income Tax. See Local Requirements.