Payroll Indiana, Unique Aspects of Indiana Payroll Law and Practice

 Payroll Indiana, Unique Aspects of Indiana Payroll Law and Practice


Indiana payroll has some unique aspects and conditions. Some of the details and laws are set out in this article including information concerning: tax withholding and reporting; unemployment insurance taxes and reporting; wage and hour  laws; and child support withholding.

The Indiana State Agency that oversees the collection and reporting of State income taxes deducted from payroll checks is:

Department of Revenue

Compliance Division

Indiana Govt. Center North

Indianapolis, IN 46204-2253

(317) 233-4018


Indiana requires that you use Indiana form “WH-4, Employee’s Withholding Exemption and County Status Certificate” instead of a Federal W-4 Form for Indiana State Income Tax Withholding.

Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In Indiana cafeteria plans are: not taxable for income tax calculation; not taxable for unemployment insurance purposes. 401(k) plan deferrals are: not taxable for income taxes; taxable for unemployment purposes.

In Indiana supplemental wages are taxed at a 3.4% flat rate.

You may file your Indiana State W-2s by magnetic media if you choose to.

The Indiana State Unemployment Insurance Agency is:

Department of Workforce Development

Indiana Government Center S.

10 N. Senate Ave., Rm. 331

Indianapolis, IN 46204-2277



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