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Departmental Notice #1 Effective Jan. 1, 2016 (R26 / 12-15)

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Departmental Notice #1 Effective Jan. 1, 2016 (R26 / 12-15)
Departmental Notice #1
Effective Jan. 1, 2016
(R26 / 12-15)
IMPORTANT NOTICE: The rates in this notice are effective for withholding purposes for periods beginning on or after Jan. 1, 2016.
How to Compute Withholding for State and County Income Tax
This document does not meet the definition of a “statement” required to be published in the Indiana Register under IC 4-22-7-7. The purpose of this document
is to assist withholding agents in determining the correct amount of Indiana county income tax to withhold from an employee’s wages by providing the tax rate
for each county. A county name that is in bold and underlined has adopted a new county income tax. An asterisk (*) beside a county name indicates that there has
been a change to the rate(s) during 2016. The rates given in this document apply to wages paid after Dec. 31, 2015, and the tax is withheld and paid at the same
time and in the same manner as the state income tax is paid.
Both the county of residence and the county of principal employment of an individual are determined on January 1 of the calendar year in which the individual’s
taxable year commences. An individual cannot be subject to both a resident rate and a nonresident rate at the same time. If a person resides in an adopting county
on January 1, he or she is subject to that county’s resident rate. If a person resides out-of-state on January 1, but works in an Indiana county as of January 1, he or
she is subject to the nonresident rate corresponding to his or her Indiana county of principal employment.
The deduction constant tables have been developed to help calculate state and county income tax. These tables divide the dollar amount of the exemption/dependent exemption by the number of pay periods. This will determine the deduction constant or the dollar amount of the exemption you should deduct each pay
period from the employee’s gross income.
Table A is used to figure personal exemptions. Each employee is entitled to deduct $1,000 per year per exemption claimed on line 5 of his/her Form WH-4 (Revised
8-08). Personal exemptions include additional exemptions if you or your spouse are age 65 or older and/or blind. The WH-4 is available at www.in.gov/dor/4100.htm.
Table B is used to figure dependent exemptions. Most employees are entitled to deduct $1,500 per year per qualifying dependent exemption claimed on line 6 of
his/her Form WH-4 (Revised 8-08).
Deduction Constant Tables
Weekly
Bi-Weekly
Table A
Daily
Semi-Monthly
Monthly
1
2
3
4
5
6
2.74
5.48
8.22
10.96
13.70
16.44
19.23
38.46
57.69
76.92
96.15
115.38
38.46
76.92
115.38
153.85
192.31
230.77
41.67
83.33
125.00
166.67
208.33
250.00
83.33
166.67
250.00
333.33
416.67
500.00
Table B
Daily
Weekly
Bi-Weekly
Semi-Monthly
Monthly
1
2
3
4
5
4.11
8.22
12.33
16.44
20.55
28.85
57.69
86.54
115.38
144.23
57.69
115.38
173.08
230.77
288.46
62.50
125.00
187.50
250.00
312.50
125.00
250.00
375.00
500.00
625.00
Locate the deduction constant for the personal exemptions in Table A. Add to
that the deduction constant for the dependent exemptions in Table B. This is
the net amount that should be deducted each pay period from the employee’s
gross income.
Example: An employee is paid a weekly salary of $800, he/she claims 5 personal
exemptions and is subject to county tax at the rate of .0125. He/she claims 3
dependent exemptions. The taxable income of $617.31 is the amount on which
state and county tax should be calculated.
If you have any questions about the withholding of state or county taxes, please
contact the department at (317) 233-4016.
___________________________
Andrew Kossack
Commissioner
Deduction Constant Amount from Table A
Deduction Constant Amount from Table B
Total Deduction Constant
$96.15
+86.54
$182.69
Gross Income
Total Deduction Constant
Taxable Income
$800.00
-182.69
$617.31
State Tax to Withhold
County Tax to Withhold
$617.31 x .033 = $20.37
$617.31 x .0125=$7.72
Note: Income Tax Information Bulletins which may be of assistance with
withholding tax questions are numbers 16, 32, 33 and 52. You may find them
at www.in.gov/dor/3650.htm.
Indiana County Resident and Nonresident Tax Rates
(Effective Jan. 1, 2016)
A county with an asterisk (*) has increased or decreased its rate since Departmental Notice #1 was last issued on Oct. 1, 2015.
A county in bold and underlined has adopted a new county income tax.
County
Name
Adams
Allen
Bartholomew
Benton
Blackford
Boone
Brown
Carroll
Cass
Clark
Clay
*Clinton
Crawford
Daviess
Dearborn
Decatur
DeKalb
*Delaware
Dubois
Elkhart
Fayette
Floyd
*Fountain
*Franklin
Fulton
*Gibson
Grant
Greene
Hamilton
Hancock
Harrison
Hendricks
*Henry
Howard1
Huntington
Jackson
*Jasper
Jay
Jefferson
Jennings
Johnson
Knox
Kosciusko
LaGrange
Lake
LaPorte
1
County
Code
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Tax
Type
Resident
Rate
Nonresident
Rate
COIT/CEDIT
0.01624
0.00799
COIT/CEDIT
0.0135
0.006375
CAGIT/CEDIT
0.0125
0.005
CAGIT/CEDIT
0.0179
0.0054
CAGIT/CEDIT
0.015
0.005
COIT
0.01
0.0025
CAGIT/CEDIT
0.023955
0.005
CAGIT/CEDIT
0.017039
0.004
CAGIT/CEDIT
0.025
0.005
CAGIT/CEDIT
0.02
0.0075
CAGIT
0.0225
0.0025
CAGIT/CEDIT
0.02
0.005
CAGIT/CEDIT
0.01
0.005
CAGIT/CEDIT
0.0175
0.0075
COIT
0.006
0.0015
CAGIT/CEDIT
0.0133
0.0058
CAGIT/CEDIT
0.02
0.005
COIT/CEDIT
0.015
0.008625
COIT/CEDIT
0.01
0.0055
CAGIT/CEDIT
0.02
0.005
COIT/CEDIT
0.0237
0.0087
CAGIT/CEDIT
0.0115
0.0065
CAGIT/CEDIT
0.0155
0.005
CAGIT/CEDIT
0.015
0.005
CAGIT/CEDIT
0.0193
0.0068
COIT/CEDIT
0.007
0.0055
COIT/CEDIT
0.0225
0.0075
COIT/CEDIT
0.0125
0.005
COIT
0.01
0.0025
CAGIT/CEDIT
0.017
0.005
CAGIT/CEDIT
0.01
0.005
CAGIT/CEDIT
0.015
0.005
COIT/CEDIT0.0150.005625
COIT/CEDIT
0.0165
0.005625
CAGIT/CEDIT
0.0175
0.005
CAGIT/CEDIT
0.016
0.0075
CAGIT/CEDIT
0.02864
0.005
CAGIT/CEDIT
0.0245
0.006
CEDIT
0.0035
0.0035
CAGIT/CEDIT
0.0175
0.005
CAGIT
0.01
0.0025
COIT/CEDIT
0.01
0.0055
COIT/CEDIT
0.01
0.00475
CAGIT/CEDIT
0.014
0.0065
CAGIT/CEDIT
0.015
0.005
CAGIT/CEDIT
0.0095
0.007
County
Name
Lawrence
Madison
Marion
Marshall
Martin
Miami
Monroe
Montgomery
*Morgan
Newton
Noble
*Ohio
Orange
Owen
Parke
*Perry
*Pike
Porter
Posey
*Pulaski
Putnam
Randolph
Ripley
*Rush
St. Joseph
Scott
*Shelby
Spencer
Starke
Steuben
Sullivan
Switzerland
Tippecanoe
*Tipton
*Union
Vanderburgh
Vermillion
Vigo
Wabash
Warren
Warrick
*Washington
Wayne
Wells
White
*Whitley
Includes the Howard County jail operating and maintenance income tax rate.
County
Code
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
Tax
Type
Resident
Rate
Nonresident
Rate
CAGIT
0.0175
0.0025
COIT
0.0175
0.004375
COIT
0.0177
0.004425
CAGIT
0.0125
0.0025
COIT/CEDIT
0.015
0.00525
COIT/CEDIT
0.0254
0.00965
COIT
0.01095
0.0027375
COIT/CEDIT0.0210.006
CAGIT/CEDIT
0.0272
0.00502
CAGIT
0.01
0.0025
CAGIT/CEDIT
0.015
0.0075
CAGIT
0.0125
0.0025
CAGIT/CEDIT
0.0125
0.005
CAGIT/CEDIT
0.013
0.0055
CAGIT/CEDIT
0.0245
0.0075
COIT/CEDIT
0.0181
0.012475
CAGIT/CEDIT
0.0075
0.0075
CEDIT
0.005
0.005
COIT/CEDIT0.01 0.00625
CAGIT/CEDIT
0.0338
0.0068
CAGIT/CEDIT
0.0175
0.0075
CAGIT/CEDIT
0.0225
0.0075
CAGIT/CEDIT
0.0138
0.0063
CAGIT/CEDIT
0.021
0.0067
COIT/CEDIT
0.0175
0.007375
COIT/CEDIT
0.0141
0.004725
CAGIT/CEDIT
0.015
0.005
COIT/CEDIT
0.008
0.00575
CAGIT/CEDIT
0.0171
0.0146
CAGIT/CEDIT
0.0179
0.0054
CEDIT
0.003
0.003
COIT
0.01
0.0025
COIT/CEDIT
0.011
0.0065
CAGIT/CEDIT
0.0198
0.005
CAGIT/CEDIT
0.0175
0.005
COIT
0.01
0.0025
CEDIT
0.002
0.002
CAGIT/CEDIT
0.0125
0.0075
CAGIT/CEDIT
0.029
0.005
CAGIT/CEDIT
0.0212
0.0057
CEDIT
0.005
0.005
CAGIT/CEDIT
0.02
0.005
CAGIT/CEDIT
0.015
0.005
CAGIT/CEDIT
0.021
0.007
CAGIT/CEDIT
0.0132
0.0057
CAGIT/CEDIT
0.014829
0.004829
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