Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-97 - Returns and reports by withholding agents

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-3-4
Sec. 97.
Withholding Agent's Returns and Reports to the Department.
				  Employers who make payments of wages subject to the Adjusted Gross Income Tax
				  Act, and who are required to withhold Federal taxes pursuant to the Internal
				  Revenue Code (USC Title 26), are required to withhold from employees' wages
				  Adjusted Gross and County Adjusted Gross Income Tax.
Withholding agents who are required to withhold Indiana
				  Adjusted Gross Income Tax and County Adjusted Gross Income Tax (where
				  applicable), shall make return of and payment to the Department monthly
				  whenever the amount of tax due, for either County and State, exceeds an
				  aggregate of $50 per month with such payment due on the thirtieth (30th) day of
				  the following month. Where the aggregate amount of tax due under the Adjusted
				  Gross Income Tax or County Adjusted Gross Income Tax does not exceed $50 per
				  month, payment and return of the amount of tax due shall be made quarterly,
				  with such payment due on the last day of the month following the end of the
				  quarter. The following criteria should be used:
(1) A withholding agent who falls within the
				monthly reporting system, due to maintaining an aggregate of fifty dollars
				($50) per month, but who in any month thereafter may maintain an aggregate of
				less than fifty dollars ($50) per month, should remit that lesser amount on a
				monthly basis so as to maintain the status of being on the monthly
				system.
(2) A withholding agent who
				falls within the quarterly reporting system, due to not maintaining an
				aggregate of fifty dollars ($50) per month, but who in any month thereafter
				does maintain an aggregate of fifty dollars ($50) per month, should then, and
				thereafter, begin reporting and making returns on a monthly basis and thereby
				maintain the status of being on the monthly system.
EXAMPLES:
(1) A
				withholding agent withheld $45.00 state income tax and $20.00 county income tax
				during July, 1978. Since the aggregate withheld exceeds $50.00 per month the
				withholding agent falls within the monthly system and must submit the return
				and make payment for the month of July no later than August 30, 1978.
(2) A withholding agent withheld $30.00 state
				income tax and $10.00 county income tax during July, 1978. Since the aggregate
				does not exceed $50.00 per month the withholding agent must submit a return and
				make payment on a quarterly basis with such return and payment due on or before
				the last day of the month following the end of the quarter.
All amounts deducted and withheld by an employer shall
				  immediately upon deduction become the money of the State. All employers who
				  make a declaration of withholding must provide each employee annually, but not
				  later than January 30, a statement on Form W-2 of the total amount of wages
				  paid, and adjusted gross and county adjusted gross income tax withheld. In the
				  case of delinquency or nonpayment of withholding tax, the employer is liable
				  for such tax, penalties, and interest. If the employer is a corporation or
				  partnership, all officers, employees, or members under a duty to withhold and
				  remit adjusted gross income tax are personally liable for such taxes, penalty,
				  and interest.
The withholding provisions of this Act apply to both resident
				  and nonresident employers having employees resident and/or working in the state
				  (except employees resident in states having reciprocal agreements with
				  Indiana).