Indiana Payroll Instructions

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Goldenseal Payroll Software Info

US Federal Withholding Tables

Free 2017 Payroll Tax Table Updates

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Indiana charges both state and county income taxes. See State of Indiana Departmental Notice #1, available from the Indiana Department of Revenue, for a listing of local tax rates for each county.

The state withholding rate changed in 2017. Indiana also removed the separate non-resident rates for each county, so there are now half as many tax tables and tax items. Several counties also changed rates (some rates or withholding formulas are pretty much guaranteed to change every year).

Indiana makes payroll extremely complicated for companies doing work in multiple counties. You may need to use a large number of different wage schedules, so you can identify the wages earned in each county.

HINT-- Turtle Creek Software provides free annual updates to our payroll software users, for US federal and Indiana tax withholding tables and formulas.

Indiana State Withholding Instructions

To enter withholding information for an employee in your Goldenseal company file, follow these steps:

  1. Choose Employees from the Accounts menu.
  2. Locate the employee record.
  3. Click the Payroll Setup button.
  4. 3. Enter the employee's marital status into the Marital Status field. You only need to use the Single or Married status, which is used only for federal taxes.
  5. Choose the correct Tax package for the county where the employee lives. State and County taxes are included in each package.
  6. Enter the number of federal dependents into the Federal Exemptions field.
  7. Enter the number of personal exemptions, claimed on Form WH-4, in the State Exemptions field.
  8. Enter the number of dependent exemptions, claimed on Form WH-4, in the Other Exemptions field.
  9. Click OK.

Indiana County Taxes

Each Indiana county has its own tax rate, which means a large number of Tax Tablse and Tax Items.

NOTE-- We have changed the basic setup for county taxes, starting with the 2005 tax year. It is now much easier to set up for work in multiple counties, though still much more effort than other states.

You'll need to set up a Tax Package for each county tax rate for which you need to withhold. To do that, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Packages from the submenu.
  2. Click the New button (or click on an existing package and click the Duplicate button).
  3. Click next to each tax that is included in this package.
  4. Click OK. Then repeat steps 2 and 3 to create more packages, or click Close to leave the setup window.

If employees are withheld at more than one county rate, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Wage Schedules from the submenu.
  2. Click the New button (or click on an existing schedule and click the Duplicate button).
  3. Enter the appropriate tax package in the Tax Package field.
  4. Click OK. Then repeat steps 2 and 3 to create more wage schedules, or click Close to leave the setup window.
  5. Enter the appropriate Wage Schedule into each Labor Hours record, when you enter employee hours into Goldenseal.

Indiana State Unemployment Tax Instructions

In 2017, Indiana SUTA is charged on the first $9,500 of wages for each employee (unchanged from last year). The starting rate for a new business is 2.7%. After the first year the rate is different for each company, depending on past layoff history.

To enter your Indiana SUTA tax rate into the Goldenseal payroll software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. You'll see a list of Tax Items. Locate the Indiana SUTA tax in the list, and double-click on it. HINT: If you don't see SUTA in the list, you'll need to import the Indiana payroll info first.
  3. Enter the percentage rate that you pay into the percentage field to the right of Calculation method.
  4. If the cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.

Indiana Marital Status

Use the following to determine the value for the Marital Status popup menu in each Employee account:

  • Single- single employee with one personal exemption
  • Married- married employee with two personal exemptions
  • Dual Income- married employee with one personal exemption
  • Head of House- employee claims Head of Family status
  • Other- not used


Indiana Tax Contacts

Department of Revenue website

Payroll Tax Office-- 317 233-4016
SUTA rate info-- 317 232-7436

Indiana Tax Form Control Section
Room 113 State Office Building
100 N Senate Ave
Indianapolis IN 46204 2253


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