Indiana employer tax information
About Indiana employer tax information
With Square, you can run payroll, pay your taxes and stay ahead of the compliance to focus on running your business. This guide is intended for your state taxes only. It’s important to note that laws vary by jurisdiction, and this guide does not attempt to address all jurisdictions or federal taxes — for example, counties or cities often have requirements that differ from federal and state law.
Before you begin
To sign up for Square Payroll in Indiana, you must be registered with the Indiana Department of Revenue (DOR) and Indiana Department of Workforce Development (DWD) so we can pay and file your state taxes.
For Indiana Department of Revenue, you need your:
Indiana Tax Identification Number (13 digits, last 3 digits are your location number)
For Indiana Department of Workforce Development, you need your:
SUTA Account Number (6 digits)
Indiana Employer Tax Rate
Indiana payroll tax details
Square Payroll processes the following per the frequency for the listed state agencies.
Withholding Tax Payment / Filing (WH-1): processes early-monthly
Annual Withholding Tax Filing (WH-3)*: processes annually
State W-2 Reporting: processes annually
Indiana Department of Workforce Development
Unemployment Insurance Tax Payment: processes quarterly
Unemployment Insurance Wage/Payroll Report (UC-5): processes quarterly
Indiana New Hire Reporting Center
New Hire Reporting: processes per each new employee
Make Indiana payroll tax payments
To make Indiana withholding tax payments, you must be registered with the Indiana Department of Revenue and have an Indiana Tax Identification Number. If you’re not registered with the DOR, you can register as a new business at the INBiz website. In addition, you should look at Departmental Notice #1 that details the withholding rates for each of Indiana’s 92 counties. To pay online:
- Sign in to INTime.
- From the menu select Pay > Make a Payment.
- Select the name of the withholding account for which you would like to make a payment, or select Pay in the Actions column next to the withholding account for which you want to make a payment.
- From the drop-down menu, select the period dates for which your payment applies to and enter your information.
- Select Continue, review the Confirm Payment page, and select Submit.
For questions about withholding tax payments, visit the IN DOR website, send them an email, or call 317-232-2337.
To make Indiana unemployment tax payments, you must be registered with the Indiana Department of Workforce Development (DWD) and have an Indiana SUTA Account Number. If you’re not registered with the DWD, visit the Indiana DWD website.
Go to UpLink to make unemployment insurance tax payments.
For questions about unemployment tax payments, visit the IN DWD website or call 800-437-9136.
Make Indiana payroll withholding tax filings
There are four possible payment schedules for withholding taxes: early filer, monthly, quarterly or annually. Your payment schedule ultimately will depend on the average amount you withhold from employee wages over time:
All withholding tax payments and Form WH-1s must be filed electronically on the INtime system.
You must file a Form WH-1 for every payment period even if no tax was withheld.
For questions about withholding tax payments, contact the Indiana Department of Revenue at 317-233-4016 or visit the Indiana Department of Revenue website.
Annual reconciliation returns are due by January 31 for the preceding calendar year. This return summarizes the employee taxes you’ve withheld during the year, and must be sent in addition to providing each of your employees with a federal Form W-2 summarizing the employee’s withholding for the year.
Form WH-3 must be filed electronically on the INtime system.
For questions about withholding tax payments, contact the Indiana Department of Revenue at 317-233-4016 or visit the Indiana Department of Revenue website.
W-2s are due by January 31 for the preceding calendar year. When filing Form WH-3, Annual Withholding Tax Form, you must also file W-2s for all employees working in Indiana.
Form W-2 must be filed electronically on the INtime system.
For questions about withholding tax payments, contact the Indiana Department of Revenue at 317-233-4016 or visit the Indiana Department of Revenue website.
Make unemployment insurance tax filings in Indiana
Unemployment insurance tax reports and payments are due by the last day of the month following the end of the calendar quarter (for example, on April 30 for the first quarter).
- To file online, go to the Uplink Employer Self Service (ESS) website and select the Unemployment for Employers link to file. You can pay any taxes due using Electronic Funds Transfer (EFT), or print a paper voucher to mail in with a check.
- To file by mail, you need to obtain copies of Form UC-1 and Form UC-5 by contacting the Indiana Department of Workforce Development. You can make any tax payments due by check or electronic check without a fee. You also can pay by credit card, but there is a nominal fee.
You must file quarterly returns even if no contributions are due. As long as you have an active unemployment insurance account, you must file reports every quarter by the due date. If you are liable for unemployment insurance taxes for any part of a calendar year, you are liable for the entire year and must file quarterly reports for the entire year.
If you believe your business no longer meets the qualifications for unemployment insurance tax, you must notify the Indiana Department of Workforce Development. In such cases, you must continue to file quarterly contribution and wage reports until you are notified that your account has been made inactive. You will be subject to a penalty if you fail to file.
For more information on state unemployment taxes, contact the Indiana Department of Workforce Development at 800-437-9136 or visit the Indiana Department of Workforce Development website.
Amend duplicate tax filings in Indiana
The Indiana Department of Revenue allows you to correct any payroll that was misreported on a previously submitted Form WH-1 through the INtax Online Portal.
- Sign in to your INtime Online Portal.
- Go to Messages.
- Write a detailed message containing the following information:
- State TID and location number
- Thee type of tax you are making corrections to
- The tax period end date
- All of the corrected information including numerical data to replace the misreported payroll
- A brief explanation for the amended return
Submit your amended Form WH-1 with the Indiana Department of Revenue as soon as possible to avoid unnecessary penalties or fees from underreporting your wages and taxes. If you have any questions, contact the Indiana Department of Revenue at 800-457-8283 or visit the Indiana Department of Revenue website.
The Indiana Department of Revenue allows you to correct any payroll that was misreported on a previously submitted Form W2 through the INtax Online Portal.
- Sign in to your INtime Online Portal.
- Go to Messages.
- Write a detailed message containing the following information:
- State TID and location number
- The type of tax or form you are making corrections to
- The tax period end date
- All of the corrected information including numerical data to replace the misreported payroll
- A brief explanation for the amended return
Submit your amended Form W-2 with the Indiana Department of Revenue as soon as possible to avoid unnecessary penalties or fees from underreporting your wages and taxes. If you have any questions, contact the Indiana Department of Revenue at 800-457-8283 or visit the Indiana Department of Revenue website.
The Indiana Department of Workforce Development allows employers to file only one tax return per quarter. To correct any payroll that was misreported on a previously submitted Form UC-1 you will need to file Form SF44954.
- Download State Form 52671.
- Obtain a copy of the Form UC-1 that was originally filed. Use this to complete the “Reported” section of the amendment.
- Submit your completed return to the address listed on the form.
File your Form UC-1 with the Indiana Department of Workforce Development as soon as possible to avoid unnecessary penalties or fees from underreporting your wages and taxes. If you have any questions on filing your amendment, contact the IN Department of Workforce Development at 800-891-6499 or visit the Indiana Department of Workforce Development website.
The Indiana Department of Workforce Development allows employers to file only one tax return per quarter. To correct any payroll that was misreported on a previously submitted Form UC-5 you will need to file Form SF44954.
- Download State Form 52671.
- Follow the instructions on page 2 of the form.
- Obtain a copy of the Form UC-5 that was originally filed. Use this to complete the “Reported” section of the amendment.
- Submit your completed return to the address listed on the form.
File your Form UC-1 with the Indiana Department of Workforce Development as soon as possible to avoid unnecessary penalties or fees from underreporting your wages and taxes. If you have any questions, contact the IN Department of Workforce Development at 800-891-6499 or visit the Indiana Department of Workforce Development website.
Register as a new employer in Indiana
- Register with INBiz. Select Register Now and follow the instructions.
- You’ll receive your Tax Identification Number within 2-3 hours of completing online registration.
For more information, contact the agency at 317-233-4016.
To ensure timeliness of your Indiana withholding tax payment and filing WH-1, Square Payroll sends this at the more frequent cadence of early-monthly filing.
- Register on the Employer Self-Service Portal as a new business.
- You’ll receive your SUTA Account Number immediately after completing the registration online.
If you can’t find your tax rate, contact the agency at 800-891-6499.
Find your Indiana tax account numbers
You can find your Tax Identification Number in any mail you have received from the Department of Revenue.
If you’re unsure, contact the agency at 317-233-4016.
To ensure timeliness of your Indiana withholding tax payment and filing WH-1, Square Payroll sends this at the more frequent cadence of early-monthly filing.
You can find your SUTA Account Number by logging into your Indiana Uplink account. You can also find your SUTA Account Number on any previously filed quarterly contribution and payroll report.
If you’re unsure, contact the agency at 800-891-6499.
You can find your Employer Tax Rate by logging into your Indiana Uplink account. You can also find your Employer Tax Rate on the Merit Rate Notice mailed to you by the Department of Workforce Development.
If you’re unsure, contact the agency at 800-891-6499.
You are responsible for ensuring Square Payroll has the correct tax rate on file for your business. If you need to update your rate, you can do so from your Tax forms in your Square Dashboard.
Payroll reciprocal state agreements
A reciprocal agreement is an agreement between two states that allows employees that work in one state but live in another to request exemption from tax withholding in their employment state. This means that the employee would not have income tax withheld from their paycheck for their employment state; they would only pay income taxes to the state where they live.
A Non-Residency Certificate (or statement or declaration), is used to declare that an employee is a resident of a state which has a reciprocal agreement with their work state and therefore chooses to be exempt from withholding income tax in their work state. A non-resident employee qualifying for this exemption must complete and file this declaration with his or her employer as authorization for the employer to stop withholding state income taxes where the employee works. Employers should keep the non-residency certificate on file.
Indiana has reciprocal agreements with:
Kentucky
Michigan
Ohio
Pennsylvania
Wisconsin
Non-resident employees should file Form WH-47.