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Monday, July 15, 2013

Indiana - State and County Tax withholdings

Question:  I have a question about withholding county tax.  We have an employeethat lives in grant county and works for us in Madison county.  Do I withhold county tax at the Madison county non-resident rate or did Iwithhold at the Grant county rate?

Answer: You will withhold for the county that the employee lives in at the resident rate. You will only use the non-resident rate when you have an employee that lives in another state and you will use the county that your business is located in at the non-resident rate.

Indiana State and County tax table can be found here; http://www.in.gov/dor/files/dn01.pdf

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