Indiana New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- Obtain an Employer Identification Number (also known as an EIN or FEIN) if you do not already have one.
- The EIN is a unique nine-digit number assigned to your business by the IRS.
- The most convenient way to get an EIN is to apply with the IRS online. There is no cost to apply for an FEIN.
- To read more about applying for an EIN, read our help article, “Your Step-by-step Guide on How to Apply for EIN”
- We recommend creating an account for an EFTPS, although it is not required. By creating an account, you will have the ability to make tax payments online or view whatever tax filings have been made on your behalf by Patriot if you are a Full Service Payroll customer. You can easily register online, and there is no charge to create an account.
- To find out more about EFTPS, read our article, “What Is EFTPS?”
State of Indiana Tax Accounts:
- Indiana new employers can register online for a state income tax (SIT) withholding account, as well as other tax accounts. This registration provides the required BT-1 Business Tax Application.
- A checklist of the needed information to complete the registration is available here.
- Indiana counties have local income taxes that are collected by the state.
- You can apply online for a state unemployment insurance (SUI) account using the Employer Self-Service tool, Uplink. For more information about the Uplink Employer Self-Service tool, visit the Department of Workforce Development.
- The Indiana new employer SUTA rate for 2021 is 2.5% for non-construction employers. New employers in Indiana are not subject to the state solvency surcharge.
- Every year, your business will be assigned a new SUTA rate based on your business type and history with unemployment (merit rating). For more information, visit the Indiana Department of Workforce Development.
- For more information, read, “What Is SUTA Tax?”
Setting Up Your New Employee:
- Have your employees fill out the top portion of Form I-9. Employers fill out the second half of the Form I-9. To learn more, read, “Form I-9 In a Nutshell”.
- You must keep each employee’s completed Form I-9 as long as the individual works for you. For more information, read “What Should Be in an Employee File?”
- Have your new employee fill out Form W-4, Employee’s Withholding Certificate for federal income taxes (FIT).
- For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know”
- Have employees fill out Form WH-4 Indiana Employee Withholding Exemption and County Status Certificate.
- Please note, your employee’s taxes will be determined by where they lived January 1st of the tax filing year. We recommend verifying employees January 1st residence every year.
- Indiana employers must follow the federal minimum wage rate of $7.25 per hour.
- You need to display federal the minimum wage poster where your employees can read it.
Once you have all the necessary information, you will be able to set up your payroll for your business. For more details, read, “What Information Is Needed to Set Up Payroll?”
Keep employee payroll records for at least three years. For more information, read our help article, “What Employers Should Know About Employee Payroll Records.”
Let us know if you have any questions. We are here to help!
Disclaimer: This is not an all-inclusive list for new employers. Check with the state and federal government for more information.