How Do I Update My Indiana Tax Tables?
Where do I find the tax tables?
For IN tax withholdings, you will need Departmental Notice #1 from the IN Department of Revenue. You can find more information about withholding taxes from the IN Department of Revenue's website, specifically Publication WH-13.
Which tables do I use?
IN uses a flat percentage for calculating State and County taxes after deducting any personal or dependent exemptions. The rate for each county varies; current county rates are listed in Departmental Notice #1. Figure 1 shows an excerpt from Department Notice #1.
Note that the figures shown in this document are for demonstration purposes only, and may not be current. Please consult the current publication for the most up-to-date information. Though the figures change periodically, the method of calculation should remain the same. If the calculation method has changed for this state please notify the webmaster.
Figure 1 - 2015 Departmental Notice #1
How to setup/update the tables in PowerChurch Plus
A separate table will need to be created for the IN State tax rate and one for the County rate. To setup/update PowerChurch Plus for IN tax tables, select the Accounting menu, Payroll, Setup, then Maintain Tax Tables.
Click Add to enter a new table, or use the Find/Locate buttons to select an existing IN tax table to update. When adding a new table, you will be prompted for the type of tax table you're adding. Select State: Indiana. For each table, enter the following information:
- Description: Enter a unique name to identify the tax table (for example, "IN State Tax").
- Tax type: The type of tax in which this table applies. In this instance, select State Tax.
- Personal exemption: Enter the amount for one personal exemption. Because PowerChurch uses an annualized method of calculation, you will want to enter the yearly amount for one exemption.
- Dependent exemption: Enter the amount for one qualifying dependent exemption. Note: Refer to the WH-4 instructions for additional information.
- Percentage: This is a flat percentage listed at the beginning of the Departmental Notice #1 document.
- Round tax to nearest whole dollar: If required, check this box to round the calculated tax amount to the nearest whole dollar.
When you are done, the screen should look like this:
Figure 2 - IN State Tax Table (2015)
To setup an IN County tax table, follow the same instructions above with the exception of the Tax type. Because the county taxes report separately on the W2 forms, you will need to define a new Local tax type. To add a new tax type, select the Accounting menu, Payroll, Setup, then Maintain Tax Types. Click Add and choose Local Tax as the type of tax you're adding. Enter the following information:
- Description: Enter a unique name to identify the tax type (for example, "Benton County Tax").
- Locality name: This will print in the Locality box on the W2 forms, (for example, "Benton").
- ID number: Enter the state tax ID number.
If you need to withhold local taxes for more than one county, define a tax type for each one.
An IN County tax table, Benton county for example, would look like this:
Figure 3 - IN County Tax Table (2015)
If you need to withhold for different counties, or possibly for a nonresident rate, create additional tables as necessary.
PCPlus V 11/11.1, PCPlus V 11.5/11.55, PowerChurch Online
state tax table, tax table, taxes
Last updated: 01/23/2017