Indiana Tax
For Indiana residents, you specify the employee's exemptions.
Deltek Modification Date - 1/18/24
Enter the following field information for residents of Indiana on the Withholding grid on the Payroll tab of the Employees hub:
Field | Description |
---|---|
Status | Indiana’s tax calculations do not use the Status field. |
Exemptions |
Enter the number of withholding exemptions claimed by the employee on the Indiana Employee’s Withholding Exemption Certificate, Form WH-4. This figure includes:
|
Other Exemptions |
Enter the number of withholding other exemptions claimed by the employee on the Indiana Employee’s Withholding Exemption Certificate, Form WH-4. This figure includes:
|
Automatically Calculated Variables
Vantagepoint automatically computes the Allowance based on the exemptions claimed by the employee.
Allowance
The Allowance is based on the number of exemptions entered in the first and second Exemptions fields. It is determined by multiplying the number of exemptions in the first Exemptions field by $1,000, and the number of exemptions entered in the second Exemptions field by $1,500.
How Vantagepoint Calculates Tax
To calculate an employee's Indiana State tax, Vantagepoint does the following:
- Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
- Subtracts the employee's Allowance and 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages to determine the taxable income.
- Calculates the net income tax by applying Tax Calculation Method 2 to the taxable income, using a percentage of 3.05%.
- Divides the net income tax by the number of pay periods in a year to determine the amount to be withheld for the pay period.