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Taxes
Indiana Payroll Taxes 2026: Complete Overview for Employers
Indiana flat 3.05% (+ county taxes) income tax, SUI on $9,500, and all employer obligations.
Practical, accurate resources for Indiana small business owners — covering payroll taxes, labor laws, and compliance. Written by the payroll professionals at Pacific Data Services.
Indiana flat 3.05% (+ county taxes) income tax, SUI on $9,500, and all employer obligations.
How to register with Indiana Department of Revenue and Indiana Department of Workforce Development as a new Indiana employer.
New employer rate 2.5%, experienced range 0.50%–7.40%, wage base $9,500.
Indiana minimum wage is $7.25/hr. Indiana’s minimum wage is $7.25/hr, matching the federal minimum. Tipped employees may be paid $2.13/hr.
Semi-monthly or bi-weekly pay required. Final pay: Final wages are due on the next regular payday after separation..
FICA, Social Security, Medicare, FUTA, federal withholding — the complete breakdown.
EIN, state registration, withholding setup, new hire reporting — complete checklist.
IRS classification rules, Indiana-specific considerations, and misclassification penalties.
IRS lookback period, deposit thresholds, next-day rule, EFTPS, and penalties.
Federal and Indiana new hire reporting requirements, deadlines, and penalties.
FLSA, IRS, and Indiana recordkeeping — what to keep, how long, and why.
ALE threshold, penalties, 1094-C/1095-C filing, small business exemption.
Misclassifying workers, wrong withholding, missed deposits — mistakes that add up fast.
Gusto vs Paychex vs QuickBooks vs ADP for Indiana small businesses.
Federal OT after 40 hrs/week, Indiana overtime rules, exemptions, salary thresholds.