Indiana Pay Stub Requirements and laws for Employers
If you're running a business in Indiana, it's crucial to understand the laws and regulations surrounding payroll and providing pay stubs to employees and contractors.
This guide outlines the relevant information to ensure compliance with Indiana's employment regulations.
Pay stub regulations in Indiana
1. Are pay stubs required by law in Indiana?
Employers in Indiana must provide their employees with pay stubs every payday.
2. How often do you need a pay stub in Indiana?
You will need to pay your employees semimonthly or biweekly. As pay stubs are mandatory in Indiana, you will need to provide pay stubs every time you pay your employees.
3. What information can be included on a pay stub in Indiana?
The following information can be included in employee pay stubs:
- Employee information such as name, last 4 digits of social security number, and address
- Employer information such as name, employer identification number (EIN), and address
- The number of regular and overtime hours worked
- Rate of pay
- Gross wages
- Deductions for taxes
- Other deductions authorized by employees
- Beginning and ending dates of the pay period
4. Does Indiana have a state income tax?
Yes, state income taxes are applicable to employees in the state of Indiana.
5. Are there any other taxes applicable to Indiana?
Yes, there are local taxes in Indiana.
Information needed to generate pay stubs
To provide employees with accurate pay stubs, the information below is required.
- Employee’s exemption status from state withholding
- Adoption exemptions, dependent exemptions, and personal exemptions
- Additional county withholding and additional state withholding
- Employee’s County of Residence as of January 1
Indiana wage and hour laws
Indiana employers are obligated to follow wage and hour regulations, ensuring that non-exempt employees receive at least minimum wage, are compensated correctly for overtime hours, are provided adequate meal and rest breaks, and accrue suitable paid time-off benefits.
These regulations encompass various aspects of employment law in Indiana.
Indiana Minimum wage
Businesses in Indiana are legally obligated to ensure that their employees receive at least the minimum hourly wage as specified by statutory regulations. This requirement applies to employers with two or more employees.
As of 2024, the basic minimum rate per hour is$7.25.
Overtime law
When employees work more than 40 hours in a calendar week, they are entitled to be paid at a premium rate, which is one-and-one-half (1.5) times their regular hourly rate.
Meal break and rest break
In Indiana, employers are not mandated by law to provide meal and rest breaks for their employees. However, if they choose to offer breaks: Breaks lasting less than 20 minutes, during which no work is performed, are considered compensable and are counted as part of the regular workday.
Paid time off and leave
Indiana mandates that employers offer employees a range of leave benefits, including both compulsory and optional types.
| Required Leave | Non-Required leave | |
|---|---|---|
| paid | Unpaid | Paid or Unpaid |
| Military leave - employees to take 15 days of paid military leave | Indiana doesn't mandate leave provision by employers, though they may need to offer unpaid medical leave under the Family and Medical Leave Actor other federal statutes. | Vacation leave |
| Jury Duty leave | Bereavement leave | |
| Holiday leave | ||
| Sick leave | ||
| Voting leave | ||
Indiana State payroll taxes 2024
In Indiana, payroll taxes are classified into different categories:
- Indiana Personal Income Tax(PIT)
- Indiana State Unemployment Insurance (UI) Tax
Indiana Personal Income Tax(PIT)
In Indiana, state personal income tax rates fluctuate based on an individual's filing status and income level, including Single, Married Filing Separately, Married Filing Jointly, and Head of Household.
For 2023, the Indiana Individual adjusted gross income tax rate is 3.15%, which will decrease to 3.05% in 2024.
Indiana State Unemployment Insurance (UI) Tax
Indiana has enacted the State Unemployment Tax Act (SUTA) to aid individuals experiencing unemployment by providing unemployment benefits. This legislation enables the state to collect the required funds to administer unemployment insurance benefits to eligible individuals during times of unemployment.
Unemployment tax rates in Indiana vary from 0.50% to 7.40% until 2025, with a consistent taxable wage base of $9,500 for the year 2024.
Indiana payroll tax filing
- Report of New hire Employees
- Report of Independent Contractors
- Indiana personal income tax filing
- Quarterly wage and contribution report(wage report -Form UC-5A, Contribution report - Form UC-1)
Report of New hire Employees
The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996 mandates that employers submit new hire reports within 20 days of hiring, re-hiring, or an employee's return to work. Employers who opt for magnetic or electronic submission must transmit reports in two monthly transmissions, with no more than sixteen days between each transmission.
Employers in Indiana have multiple options for reporting new hires to comply with the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996. Electronic reporting allows for convenient submission, providing printable confirmation of received reports and accessible 24/7. Alternatively, non-electronic methods include submitting a printed list, utilizing the New Hire Reporting Form (which can be downloaded, filled out, and faxed or mailed), or using the W-4 Form. Another option available is through a payroll service, which can streamline the reporting process for employers.
Report of Independent Contractors
Employers in Indiana are not required by law to report their newly hired independent contractors.
How to report employees new hire in Indiana?
Indiana offers various options for submitting new hire information, allowing for flexibility in the reporting process.
| Online | Fax | |
|---|---|---|
| Employees New Hire Report | Address Information: Indiana New Hire Reporting Center P.O. Box 3429 Trenton, NJ 08619 Direct Phone: 317-612-3028 Public Phone: 866-879-0198 Email: contact@in-newhire.com | Fax 1: 800-408-1388 |
Indiana personal income tax filing
Your tax return must be submitted by April 15, 2024. If you file later and have a tax balance, you'll be subject to interest on the unpaid amount and potential penalties. Fiscal year tax returns are due by the 15th day of the fourth month after the fiscal year concludes. Make sure to provide the fiscal year filing period details on Form IT-40. If you file after April 15, 2024, and owe taxes, you might face penalties. Use Form IT-40RNR for Full-Year Residents of Reciprocal States, Form IT-40PNR for Part-Year and Full-Year Nonresidents, or Form IT-40 for Full-Year Residents when filing accordingly.
The penalty amounts to 10% of the balance owed (line 23 minus line 20) or $5, whichever is higher. However, there's an exception: no penalty will be imposed if you have an extension to file, file and pay the remaining tax by the extended filing deadline, and have prepaid at least 90% of the total amount due by April 15, 2024.
Quarterly wage and contribution report(wage report -Form UC-5A, Contribution report - Form UC-1)
Employers report their wages and contributions on a quarterly basis. They must submit one report per quarter, regardless of whether they've paid any wages during that period. It's the responsibility of employers to ensure the timely submission of all reports and payments to the Department of Workforce Development (DWD).
| Reporting Period | Due Date |
|---|---|
| Quarter 1 | April 30 |
| Quarter 2 | July 31 |
| Quarter 3 | October 31 |
| Quarter 4 | January 31 |
Have all the information handy?
With SecurePayStubs, you can calculate accurate federal and Indiana state taxes for your employees and generate pay stubs securely.
Processing payroll manually is complex
As a business owner who runs payroll manually, you will need to keep up with ever-changing payroll laws. You already have a lot on your plate and you might not want to get into the complex process of pay stub generation.
With SecurePayStubs' paystub generator you can swiftly create pay stubs for your employees, complete with precise federal and Indiana state tax calculations, as well as for independent contractors, all in under 2 minutes. Enter the basic employee and employer information, select a pay stub template for free, and let SecurePayStubs calculate the applicable payroll taxes accurately.
Spend less time generating pay stubs and more on your business growth.
This article has been updated from its original publication date of April 9, 2024.