Reduce Employee Number of Dependents for Indiana Screen

Use this toolkit to reduce the number of dependents based on the number of adopted children for Indiana.

Indiana's Departmental Notice No. 1 was updated to add a third deduction constant table for a new exemption for adopted children, the department said in a news release. The $3,000 annual exemption for adopted children was added in legislation (S.B. 2).

The Actual Number of Adopted Children field was recently added on the Manage Employee Taxes screen and in ESS where you were instructed to specify the actual number of adopted children claimed by the employee on the Form WH-4. This value was not used with the first phase of the Indiana 2022 tax withholding updates. You were also instructed to temporarily include the number of adopted children to both state and local dependents in order for payroll to calculate the withholding tax even if there is no adopted children exemption type yet on the Manage State Tax Withholding Adjustments screen.

You must use this toolkit to reduce the number of dependents based on the number of adopted children.