What do I need to know about state withholding tax?
Income earned within Indiana is subject to withholding tax for both residents and non-residents
Five states have a reciprocal agreement with the state of Indiana. They are Kentucky, Michigan, Ohio, Pennsylvania, and Wisconsin. All salaries, wages, tips, and commissions earned in these states by an Indiana resident must be reported as if they were earned in Indiana
Residents of Kentucky, Michigan, Ohio, Pennsylvania, and Wisconsin who have Indiana income will report and pay tax on that income to their state of residence.
New employers are required to register for a withholding account. Click here to register.
What forms do employees need to set up state withholding?
WH-4 Form – Employee’s Withholding Exemption and County Status Certificate
WH-4MIL – Annual Nonresident Military Spouse Earned Income Withholding Tax Exemption Form
What do I need to know about unemployment tax?
2024 Taxable Wage Base – $9,500
2024 New Employer UI Rate – 2.5%
With few exceptions, new employers are required to register for an unemployment tax account. Click here to register.
