Withholding Tax

In running your business, will you have employees working for you? If so, you’ll need to collect withholding taxes. These are state and county taxes that are withheld from your employees’ wages.

Registration for withholding tax is necessary if the business has:

  • Employees
  • Non-resident shareholders
  • Non-resident partners
  • Beneficiaries for distributions of income.

To register for withholding for Indiana, the business must have an Employer Identification Number (EIN) from the federal government. In addition, the employer should look at Departmental Notice #1 that details the withholding rates for each of Indiana’s 92 counties.

Below you’ll find more information about withholding tax and additional resources including the business tax application, frequently asked questions and county tax rates.

If you have questions about withholding tax, visit INBiz