September 29, 2020 Indiana announces county income tax rate changes effective October 1, 2020, employers must migrate to new electronic reporting system The Indiana Department of Revenue announced that the counties of Pulaski and Wayne have changed their local withholding income tax rates effective October 1, 2020. (News release, September 22, 2020.) The changes are as follows:
Additional tax rate changes effective January 1, 2021 may be announced. State income tax rate remains at 3.23% The state individual income tax rate was reduced from 3.4% to 3.3% effective for calendar years 2015 and 2016 and was further reduced to 3.23% for 2017 and later years. (HB 1001, PL 205, signed by the governor on May 8, 2013.) Other legislation enacted in 2015 required that local income taxes collected by Indiana counties be consolidated into one local income tax rate per county.The law also required that both residents and nonresidents living and/or working in a county pay at one local income tax rate, increasing the local taxes paid by nonresidents. For more information, see Department Notice #42.(HB 1485, PL 243, signed by the governor on June 5, 2015.) Businesses must migrate to new electronic reporting system The Department announced that the second rollout of its new electronic reporting system, INTIME, is now complete. The second rollout involves several tax types including withholding and sales taxes. According to the Department, with over 200,000 accounts, these two tax types alone account for over 50% of all state revenue collected each year. Beginning September 8, 2020, existing business tax customers that filed sales and withholding taxes via the INtax system are required to migrate to INTIME. Step-by-step migration instructions may be found in this document. Business tax customers are encouraged to migrate to the new system as soon as possible. However, to provide adequate time to complete this transition, INtax will remain available to file and pay for current periods until December 31, 2020. Past period reporting, however, needs to be performed using INTIME. INtax will also remain available to support the Indiana filing requirement for the 2020 Form WH-3 and Form W-2 from January 1, 2021, to February 28, 2021. Employers will need to register and re-enter bank account information in INTIME once a new logon has been created. For more information, see the INTIME website. ———————————————
——————————————— EY Payroll News Flash
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