Indiana Payroll Tax And Labor Laws

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Did you know that regardless of where the service was performed, all income earned by Indiana residents, including full-time, part-time, temporary, and seasonal employees, is subject to withholding?

Indiana Wage and Hour Laws

Indiana’s minimum wage rule requires that employees be paid $7.25 per hour.

Except for the following personnel, who are not covered:

• • employees on a commission basis;
  • people under the age of sixteen;
  • self-employed individuals;
  • Nursing students, interns, and residents;
  • students that volunteer at their schools;
  • employees in the agriculture industry;
  • persons who have not worked for more than four weeks in any of the last four three-month periods; and
  • people who are covered by the Motor Carrier Act

Indiana Payroll for Employers

Indiana Unemployment:

Taxable Wage Base ($000s):                        9,500

New Employer Rate (% Taxable Wages)    2.5

Employee Tax Rate (% Taxable Wages)     None

Indiana Income Tax Withholding

Employers in Indiana are required to withhold income tax from their employees’ pay and return the withheld amounts to the Department of Revenue.

Employers must deduct from wages regardless of the number of workers or the location where wages are paid.

Employers in Indiana are not required to withhold Indiana tax from wages paid to employees who live in Kentucky, Michigan, Ohio, Pennsylvania, or Wisconsin under reciprocal agreements, but they are encouraged to withhold the appropriate tax relevant to the employees’ state of legal residence.

Indiana Benefits

Indiana Voting Rights:

Employer Right to Schedule Voting Hours         No

Pay Deduction for Voting Time Leave                 No

There is no such thing as a voting time leave law in Indiana.

Indiana State Tax Resources