dn01

Transcript

1 Departmental Notice #1 Effective Jan. 1, 2019 (R33 / 12-18) Important Notice: The rates in this notice are effective for withholding purposes for periods beginning on or after Jan. 1, 2019. How to Compute Withholding for State and County Income Tax This document does not meet the definition of a “statement” required to be published in the Indiana Register under IC 4-22-7-7. The purpose of this document is to assist withholding agents in determining the correct amount of Indiana county income tax to withhold from an employee’s wages by providing the tax rate for each county. An asterisk (*) beside a county name indicates the rate has changed since the last Departmental Notice #1 was published on Oct. 1, 2018. Both the county of residence and the county of principal business or employment of an individual are determined on January 1 of the calendar year in which the individual’s taxable year begins. If a person resides in an Indiana county on January 1, or resides out-of-state on January 1, but has his or her principal place of work or business in an Indiana county as of January 1, he or she is subject to county tax at the rate corresponding to that Indiana county . Withholding agents should withhold county tax based on the employee’s Indiana county of residence as of January 1 of the tax year. If the employee resides out-of-state on January 1, but has his or her principal place of work or business in an Indiana county as of January 1, then the withholding agent should withhold for the Indiana county of principal place of work or business. Effective Jan. 1, 2018, certain professional team members and race team members are subject to county tax. Please see Income Tax Information Bulletin #88 and Commissioner’s Directive #51 for further information. Withholding for these individuals shall be done in a manner otherwise consistent with this notice. The deduction constant tables on page 2 have been developed to help calculate state and county income tax. These tables divide the dollar amount of the exemption/dependent exemption by the number of pay periods. This will determine the deduction constant or the dollar amount of the exemption you should deduct each pay period from the employee’ s gross income. Table A is used to figure personal exemptions. Each employee is entitled to deduct $1,000 per year per exemption claimed on line 5 of his/her Form WH-4. Personal exemptions include additional exemptions if the employee and/or the employee’s spouse are age 65 or older and/or blind. The Form WH-4 is available online at www.in.gov/dor/4100.htm . Table B is used to figure dependent exemptions. Most employees are entitled to deduct $1,500 per year per qualifying dependent exemption claimed on line 6 of his/her Form WH-4.

2 Departmental Notice #1 Page 2 Deduction Constant Tables Weekly Bi-Weekly Table A Daily Semi-Monthly Monthly 19.23 2.74 38.46 41.67 83.33 1 5.48 38.46 83.33 76.92 166.67 2 8.22 125.00 115.38 250.00 57.69 3 166.67 10.96 153.85 76.92 333.33 4 192.31 208.33 96.15 416.67 13.70 5 500.00 250.00 16.44 230.77 115.38 6 Bi-Weekly Semi-Monthly Monthly Table B Daily Weekly 28.85 62.50 57.69 4.11 125.00 1 57.69 125.00 8.22 115.38 250.00 2 12.33 375.00 86.54 173.08 187.50 3 115.38 250.00 16.44 500.00 230.77 4 288.46 312.50 20.55 625.00 144.23 5 Locate the deduction constant for the personal exemptions in Table A. Add to that the deduction constant for the dependent exemptions in Table B. This is the net amount that should be deducted each pay period from the employee’s gross income. Example: An employee is paid a weekly salary of $800, he/she claims five personal exemptions and is subject to county The taxable income of $617.31 is the amount on which tax at the rate of 0.01. He/she claims three dependent exemptions. state and county tax should be calculated. $96.15 Deduction Constant from Table A Deduction Constant from Table B +86.54 Total Deduction Constant $182.69 $800.00 Gross Income Total Deduction Constant -182.69 Taxable Income $617.31 $617.31 x .0323 = $19.94 State Tax to Withhold County Tax to Withhold $617.31 x .01 = $6.17 Note: Income Tax Information Bulletins which may be of assistance with withholding tax questions are numbers 16, 32, www.in.gov/dor/3650.htm 33 and 52. You may find them at . If you have any questions about the withholding of state or county taxes, please contact the department at (317) 233-4016. __________________ Adam Krupp Commissioner

3 Departmental Notice #1 Indiana County Tax Rates Page 3 (Effective Jan. 1, 2019) A county with an asterisk (*) has changed its rate since Departmental Notice #1 was last issued on Oct. 1, 2018. County County County County County County Code Name e Code Name Tax Rate Tax Rat 47 0.01624 01 0.0175 Adams Lawrence 0.0175 Allen 02 0.0148 Madison 48 0.0202 03 0.0175 Bartholomew Marion 49 0.0125 50 Marshall 04 Benton 0.0179 51 0.0175 Blackford 05 0.015 Martin 52 06 Boone 0.015 Miami 0.0254 53 Monroe Brown 0.01345 07 0.025234 54 0.023 *Carroll 08 0.022733 Montgomery 55 0.0272 Morgan 0.026 *Cass 09 Newton 56 0.01 Clark 10 0.02 Noble 0.0225 0.0175 Clay 11 57 Ohio 12 Clinton 58 0.0225 0.0125 59 0.01 13 Crawford 0.0175 Orange Daviess 60 Owen 0.015 14 0.013 *Dearborn 0.0265 15 0.012 Parke 61 Perry 62 0.0181 0.0235 16 Decatur DeKalb 63 0.0075 17 0.0213 Pike 0.015 64 0.005 Delaware 18 Porter Posey 0.0125 0.01 65 Dubois 19 Pulaski 66 0.0338 Elkhart 20 0.02 Putnam 67 0.02 0.0237 21 Fayette 0.0135 Randolph 68 0.0225 Floyd 22 0.021 Fountain 69 0.0138 23 Ripley 0.015 Franklin 0.021 Rush 24 70 St. Joseph 25 Fulton 71 0.0238 0.0175 72 0.007 26 Gibson 0.0216 Scott *Grant 73 Shelby 0.0255 27 0.015 Greene 0.008 28 0.0175 Spencer 74 Starke 75 0.0171 0.01 29 Hamilton *Hancock 76 0.0179 30 0.0174 Steuben 0.01 77 0.006 Harrison 31 Sullivan Switzerland 0.01 0.015 78 Hendricks 32 Tippecanoe 79 0.011 Henry 33 0.015 Tipton 80 0.026 0.0175 34 Howard 0.0195 Union 81 *Huntington 35 0.0175 36 Vanderburgh 82 0.012 Jackson 0.021 0.02864 Vermillion 0.015 Jasper 37 83 Vigo 0.02 0.0245 84 Jay 38 Wabash 85 0.029 Jefferson 39 0.0035 Warren 86 0.0212 0.0315 40 *Jennings 0.01 Warrick 87 0.005 Johnson 41 42 0.01 88 0.02 Knox Washington 0.01 89 0.015 43 Kosciusko Wayne 0.0165 Wells 90 0.021 LaGrange 44 45 0.015 91 0.0232 Lake *White 46 Whitley 92 0.014829 LaPorte 0.0095

Related documents

dn01

dn01

Departmental Notice #1 Effective Jan. 1, 2017 (R29 / 12-16) IMPORTANT NOTICE: The rates in this notice are effective for withholding purposes for periods beginning on or after January 1, 2017. How to ...

More info »