Indiana Employer Payroll — WH-1, WH-3, UC-1/UC-5 & County Tax

Verify the employer has active registrations for both Indiana income tax withholding (DOR via INTIME) and unemployment insurance (DWD via Uplink ESS). Confirm the assigned WH-1 filing frequency from DOR's most recent classification notice and the SUTA experience rate from DWD. Identify all Indiana work locations and any nexus in reciprocal states (OH, KY, MI, PA, WI).

Collect a completed Indiana Form WH-4 from every employee before the first wage payment. For each employee, record their county of residence on January 1 (which locks the LOIT rate for the entire year under IC 6-3.6-8-1) and their county of principal employment. For any employee who is a resident of OH, KY, MI, PA, or WI, collect Form WH-47 and stop withholding Indiana state income tax — but continue withholding Indiana county tax based on the work-location county.

For each pay period, compute Indiana state withholding at 3.15% and county LOIT at the employee's January 1 residence county rate (per DOR Departmental Notice #1; e.g., Marion 2.02%, Hamilton 1.10%, Allen 1.59%, St. Joseph 1.75%). Apply WH-4 exemption offsets ($1,000/year per personal exemption; $1,500/year per dependent). Remit combined state + county tax via INTIME on the assigned WH-1 schedule. File a zero WH-1 for any period with no withholding.

Each calendar quarter, report each employee's gross wages and taxable wages (capped at $9,500 per employee per year) on Form UC-1 and remit SUTA contributions at the employer's experience rate on Form UC-5 via DWD Uplink ESS. Deadlines: April 30 (Q1), July 31 (Q2), October 31 (Q3), January 31 (Q4). Evaluate whether a voluntary contribution before the early-March deadline would reduce the experience rate for the upcoming year.

By January 31, file Form WH-3 (Annual Withholding Reconciliation) through INTIME, reconciling total state and county tax withheld during the year against all W-2s. Transmit all W-2s and any 1099-Rs or W-2Gs showing Indiana withholding electronically with the WH-3. Deliver W-2 copies to employees by the same January 31 deadline. Investigate and resolve any WH-3 mismatch versus periodic WH-1 totals (file amended WH-1U if any period was underreported).