Indiana registration and tax info

• Indiana Department of Revenue (DOR) - income tax withholding
• Indiana Department of Workforce Development (DOWD) - unemployment tax

Depending on the type of business you have, the state of Indiana and local municipalities have different resources and filing requirements. Once you register for an INBiz account and file with the Secretary of State, if necessary, you can register with the Department of Revenue and the Department of Workforce Development.

Register for withholding tax

When registering online, you should receive your Withholding Account number in about 2-3 business days—keep this timeframe in mind when planning your first payroll in the state. A checklist of items you'll need to register your business can be found in the BT-1 checklist.

1. Visit the INBiz website here. 
2. Scroll to the bottom of the page and click Register Now.
3. Click the Getting Started tab to create an account and begin the process.
4. Follow the instructions to get your business account set up and registered for a Withholding Account.

You'll receive:

• A 10-digit Taxpayer ID and;
• A 3-digit location code.
  • If there's only one location, most employers will have a location code of "001".
  • If you have a consolidated account, you'll usually have a location code of "900".

Contact the agency at (317) 232-2240 if you haven't received, or need to verify your location code.

Enter the tax account information in Gusto

Once a valid Indiana work address has been added in Gusto for one or more employee(s), you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the "Indiana Tax Setup" headline and select Manage taxes.
3. Enter your withholding account number and Save.
   • Enter your 10-digit Taxpayer ID and the 3-digit location code.
     • If there's only one location, most employers will have a location code of "001".
     • If you have a consolidated account, you'll usually have a location code of "900".
   • If you need to update your account number for any reason: Contact us from the Help or Priority support section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.

Register for unemployment tax

1. Visit the Indiana Department of Workforce Development website.
2. Scroll to the "Resources" headline and click First Time User.
3. Make sure Employer is selected on this page, enter your FEIN (Federal Employer Identification Number), and click Next.
4. Complete any remaining prompts. 

You should receive your unemployment account number instantly after registering online.

You unemployment tax rate ("total premium rate") will appear on the notice you receive from the Indiana DOWD in the "Total Premium" box. You can verify your rate by calling the agency at (800) 437-9136.

Enter the tax account information in Gusto

Once a valid Indiana work address has been added in Gusto for one or more employee(s), you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the “Indiana Tax Setup” headline and select Manage taxes.
3. Enter your unemployment account number and agency-assigned unemployment rate—if you need to update a rate already entered, follow the steps in this article. 
   • When entering your tax rate, be sure to enter your "total "or "applied" rate, which factors in an interest surcharge. 
   • If you need to update your account number: Contact us from the Help or Priority support section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.
   • Don't have your rate yet? Check out this article and enter the new employer rate specific to the state in the meantime. Update the rate as soon as you've received your agency-assigned rate.

Gusto determines how much state income tax needs to be withheld from your employees using Form WH-4. The form is also used to determine county taxes for the entire year. 

Employers are required to withhold taxes in the county where an employee lives, using the address that's in effect on January 1 of each calendar year.

• If a person lives in a taxing county on January 1, they're subject to that county’s resident rate for the entire year. 
• If a person lives in a county that does not have a tax (including out of state employees), the employee pays taxes to the county of their work location, and pays at the nonresident tax rate.

County taxes are paid directly to the state, but get allocated to the appropriate counties. You can find a list of IN counties with active tax rates here.

Enter your employees’ county of residence as of Jan 1 (according to Form WH-4)

Employers must report each employees’ applicable county in Gusto—we’ll remind you with a to-do item on your Home page at the end of each year.  

A few reminders: 

• If the employee moves, the county doesn't change until Jan 1 of the following year. 
  • The employee will see their prior Indiana county tax on their paystubs for the remainder of that year. 
• If the employee did not live in Indiana on Jan 1 of the current year, enter "Out of State".

Enter the county of residence for employees (as of Jan 1, according to Form WH-4)

1. Head to the People section and select Team members. 
2. Click on an employee’s name. 
3. From the Job & Pay tab, scroll to the “Indiana Taxes” headline. 
4. Click edit.
5. Change the county.
6. Click Save.

If an employee intends to move on or before January 1st, you can update their work and/or home address in Gusto—you'll still want to make sure their county selection is accurate as well. 

Third-party authorization is required for the below agencies:

• Indiana Department of Workforce Development (DOWD) TPA is needed for payments and filings.
• Indiana Department of Revenue (DOR) TPA is needed for amended returns (as needed).

IN DOWD TPA—payments and filings

To give Gusto the required access we'll need to submit payments and filing to this agency:

1. Sign into the Uplink portal here.
2. Once signed in, find "Manage Users."
3. Under "External Account Authorizations", select the Add Agent button on the right.
4. Search by using our Agent Number: 116975, or by our Business Name: ZenPayroll, Inc.
5. Select Authorization level: Wage Records.
6. Be sure to add us as an "External Account User" and not as a "Correspondence Agent".

IN DOR TPA—amended filings

Amendments often call for a different filing method than original returns—this agency requires that Gusto have Power of Attorney (POA) access to your online Indiana INTIME account in order to submit amended returns on your behalf.

If we've contacted you requesting POA access to file amendments, you can grant us access two different ways.

Method 1

If you're already registered for an online INTIME account, you'll have received an email from the Indiana Department of Revenue with instructions you can follow to approve our POA access request in the INTIME portal.

If you need to register for an INTIME account, you can do so by using these instructions provided by the agency.

When we requested POA access for your account, the Indiana Department of Revenue sent you a pre-filled POA-1 form to the address you have on file with them. Fill out this form and mail it back to the agency.

Method 2

When Gusto requested POA access for your account, the Indiana Department of Revenue sent you a pre-filled POA-1 form to the company address you have on file with them. Fill out the form and mail it back to the agency.

Withholding account number

If you've run payroll in Indiana previously, you can find your Taxpayer ID (TID) on:

• Notices that you've received from the Indiana Department of Revenue or;
• By calling the agency at (317) 232-2240.

Unemployment Account Number and tax rate

Your Indiana unemployment account number and Premium Rate can be found by:

• Reviewing notices you receive from the Indiana Department of Workforce Development or;
  • Your unemployment rate will appear in the "Total Premium" box of the agency notice.
• Calling the agency at (800) 437-9136.

Don't have an agency-assigned UI rate yet?

You can add the "New employer SUI tax rate" specific to Indiana in Gusto for the meantime—find the new employer rates for each state in the linked article, along with instructions on how to update the rate once you've received your company-specific rate.

Gusto determines how much state income tax needs to be withheld from your employees using Form WH-4. This form is also used by Indiana to determine county taxes for the entire year. 

Important

Indiana uses an employee's location as of January 1st to determine applicable taxes for the entire year—prior to running your first payroll of each year,
payroll administrators for companies with a location in Indiana must verify that the address information for applicable employees is correct in Gusto. 

If an employee is planning on moving on or before January 1st, you will need to update their address in Gusto:

• Update a work address for an employee.
• Update a home address for an employee.

If they're moving after January 1st, you should continue to use their original address. If the address changes after January 1, the employee will see their prior Indiana county tax on their paystubs for the remainder of that year. 

Third-party authorization is required for the below agencies:

• Indiana Department of Workforce Development (DOWD) TPA is needed for payments and filings.
• Indiana Department of Revenue (DOR) TPA is needed for amended returns (as needed)

IN DOWD TPA—payments and filings

To give Gusto the required access we'll need to submit payments and filing to this agency:

1. Sign into the Uplink portal here.
2. Once signed in, find "Manage Users."
3. Under "External Account Authorizations", select the Add Agent button on the right.
4. Search by using our Agent Number: 116975, or by our Business Name: ZenPayroll, Inc.
5. Select Authorization level: Wage Records.
6. Be sure to add us as an "External Account User" and not as a "Correspondence Agent".

IN DOR TPA—amended filings

Amendments often call for a different filing method than original returns—this agency requires that Gusto have Power of Attorney (POA) access to your online Indiana INTIME account in order to submit amended returns on your behalf.

If we've contacted you requesting POA access to file amendments, you can grant us access two different ways.

Method 1

If you're already registered for an online INTIME account, you'll have received an email from the Indiana Department of Revenue with instructions you can follow to approve our POA access request in the INTIME portal.

If you need to register for an INTIME account, you can do so by using these instructions provided by the agency.

When we requested POA access for your account, the Indiana Department of Revenue sent you a pre-filled POA-1 form to the address you have on file with them. Fill out this form and mail it back to the agency.

Method 2

When Gusto requested POA access for your account, the Indiana Department of Revenue sent you a pre-filled POA-1 form to the company address you have on file with them. Fill out the form and mail it back to the agency.

Once a valid Indiana address has been added in Gusto for one or more employee(s), you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the "Indiana Tax Setup" headline and select Manage taxes.
3. Enter the applicable account number(s) and rate(s).