Indiana amends withholding remittance provisions
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Thursday, May 6, 2021

Indiana amends withholding remittance provisions

By Payroll and Entitlements Editorial Staff

Indiana has enacted legislation:

  • requiring Indiana to provide electronic notice to employers whose income tax withholding is past due; and
  • providing for annual payroll service provider withholding registration.

Indiana must provide written notice, by electronic means, to each employer that is registered online in Indiana’s INTIME program and whose Form WH-1 monthly withholding tax report or withholding tax remittance is past due. The requirements is effective July 1, 2021.

Each payroll service provider must annually register with Indiana beginning January 1, 2022. Indiana may charge an annual payroll service provider a registration fee for purposes of the registration program. A payroll provider may retain any income generated on business client (client) funds while held in a provider's legal possession pending remittance to authorized payees if the client agreement expressly permits it and the provider complies with certain rules. The law includes penalty provisions regarding late payments. (S.B. 234 (P.L. 97) , Laws 2021, approved April 22, 2021, effective as noted above).

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