Indiana New Employer Registration: Step-by-Step Guide

Last reviewed: July 2026

When you hire your first employee in Indiana, you trigger a series of registration requirements at the federal and state level. Missing any of these steps can result in penalties, delayed payroll, and compliance headaches. This guide walks you through everything, in order.

Registration Overview

Here's a checklist of what every new Indiana employer needs:

• ☑ Federal Employer Identification Number (EIN)
• ☑ Indiana state tax registration (Indiana Department of Revenue)
• ☑ Indiana SUI account (Indiana Department of Workforce Development)
• ☑ Workers' compensation insurance
• ☑ New hire reporting setup
• ☑ Payroll system or software

Step 1: Get Your Federal EIN

Your Employer Identification Number (EIN) is your federal tax ID. You need it for everything — federal tax filings, state registrations, opening a business bank account, and running payroll.

Apply online at IRS.gov/EIN. It's free and you receive your EIN immediately.

Step 2: Register with Indiana Department of Revenue

Visit the Indiana Department of Revenue withholding page, or start through INBIZ, the state's combined business registration portal, to open a state employer tax account. This account lets you withhold Indiana state income tax from employee paychecks, using Form WH-4 to figure exemptions, and remit it on Form WH-1. Our W-4 Helper walks through how a completed WH-4 turns into an actual withholding amount.

One thing that trips up employers moving in from a single-tax state: Indiana also requires county income tax withholding on top of the state rate, for all 92 counties, based on where the employee lives rather than where you're located. Rates are published in Departmental Notice #1 and change from year to year, so confirm your payroll software or spreadsheet is using the current table.

From the Payroll Desk

Don't wait until your first payroll to register. State registrations can take days or weeks to process. Start the registration process as soon as you know you'll be hiring.

Step 3: Register for SUI

Register for a State Unemployment Insurance account through the Indiana Department of Workforce Development. You'll be assigned:

• An employer account number
• Your initial SUI rate (2.5% for new employers)
• Quarterly filing requirements

SUI is an employer-paid tax on the first $9,500 of each employee's wages. See our Indiana SUI Rates 2026 guide for details.

Step 4: Workers’ Compensation Insurance

Most Indiana employers are required to carry workers' compensation insurance, which covers employees who are injured on the job. Requirements vary by state — some states require coverage from the first employee, while others have minimum thresholds.

You can obtain workers' comp through private insurance carriers or, in some states, through a state fund. Compare quotes from multiple carriers to find the best rate for your industry classification.

Step 5: New Hire Reporting

Indiana law requires you to report every new hire, and every rehire, within 20 days of their start date. Reports go to the Indiana New Hire Reporting Center, which shares the data with child support enforcement agencies nationwide.

Reporting is done electronically through the center's website. See our New Hire Reporting guide for what information you'll need to submit.

Step 6: Set Up Payroll

With your EIN, DOR account, and DWD account all in place, you're ready to run your first payroll. At minimum you need a way to calculate federal and Indiana withholding correctly, apply the right county rate, deposit taxes on schedule, and file WH-1, WH-3, and quarterly SUI reports on time.

Gusto handles all of that automatically: it calculates federal, state, and county withholding, deposits the taxes, and files the WH-1, WH-3, and SUI paperwork for you, then generates W-2s at year-end. If you'd rather see the math first, try our W-4 / WH-4 Helper before deciding whether to hand the filings off.

Frequently Asked Questions

How do I register as a new employer in Indiana?

Register for a state tax ID with the Indiana Department of Revenue and for an SUI account with the Indiana Department of Workforce Development. You'll also need a federal EIN from the IRS.

When must I register as an employer in Indiana?

You must register as soon as you hire your first employee or, in some cases, when you pay wages above a threshold in a calendar quarter. Register before your first payroll.

Do I need workers' compensation in Indiana?

Most Indiana employers are required to carry workers' compensation insurance. Check with the Indiana Department of Workforce Development or your state's workers' compensation board for specific requirements.

What is an EIN and how do I get one?

An Employer Identification Number (EIN) is a federal tax ID from the IRS. Apply online at irs.gov/ein — it's free and you receive it immediately.