Free Indiana Payroll Tax Calculator and IN Tax Rates

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    Pay Details

  • 2

    Exemptions

  • 3

    Federal Information

  • 4

    State Information

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    Locale Information

  • 6

    Voluntary Deductions

  • 7

    Calculate Paycheck

Welcome to our payroll calculator!

Before we jump in, who are you using this calculator for?

Thanks!

Our calculators are designed for employers, and they’ll ask for information you may not have. For a better experience, please check out this employee-focused paycheck calculator.

How much did your employee earn?

Gross Pay: This is the total amount of wages your employee earned before taxes and deductions are withheld.


For salaried employees, gross pay equals their annual salary divided by the number of pay periods per year. For hourly employees, gross pay equals the number of hours worked multiplied by their hourly wage.


(Don’t forget to add on any tips, commissions, or bonuses!)

Gross Pay Method: Is the gross pay amount based on your employee’s annual compensation, or by how many hours they worked in the last pay period?

Gross Pay YTD: Enter the total gross pay your employee has earned this year, prior to this paycheck. Normally, this can be found on the last pay stub.

Pay Frequency: How often do you normally issue paychecks?

Check Date: Enter the check date that should appear on your paycheck.

Is your employee exempt from any taxes?

Federal: In some cases, public and governmental employees are exempt from federal taxes. Check “yes” if your employee is exempt and Federal taxes should not be deducted.

FICA: In some cases, public and governmental employees are exempt from FICA. Check “yes” if your employee is exempt and FICA taxes should not be deducted.

Medicare: In some cases, public and governmental employees are exempt from Medicare taxes. Check “yes” if your employee is exempt and Medicare taxes should not be deducted.

Please enter your employee’s withholding information.

2020 W4: Would you like to use the 2020 withholding tables? Here’s an article that covers the 2020 W-4 updates if you aren’t sure.

Federal Filing Status: Select your employee’s filing status for federal withholding. This helps determine how much federal tax will be withheld.

Two Jobs: If the employee indicated that they have more than one job or are married and filing jointly with a working spouse, select Yes here.

Dependents Amount: Enter the amount your employee listed on Line 3 of their W-4, if any. This is where they claim dependents.

Other Income: If your employee listed another other income on line 4(a) of their W-4, enter the amount here.

Deductions: Enter any deductions that your employee listed on line 4(b) of their W-4, if applicable.

Additional Federal Withholding: If your employee has asked to have additional funds withheld from each paycheck, enter the amount here. If they have not, enter “0”.

Round Federal Withholding: Would you like us to round your employee’s withholding totals to the nearest dollar? (It’s not required, but it is permitted)

Now, add information for their state.

State: Select the state where withholding should be calculated. It should be the same state where the work was performed.

Now, add locale information if applicable.

Does your employee have any voluntary deductions?

Please add any additional deductions for items like health insurance, 401(k), HSAs/FSAs, or any other benefits.


Select type of deduction needed:

401(k)

Add deduction

HSA

Add deduction

Custom

Add deduction

Let’s finish crunching the numbers!

Click the button below to see your paycheck calculated.

Here’s your paycheck information:

Leave payroll to us.

We do all the hard work to set you up for just $40 + $6 per employee.

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Updated: May 10, 2024

There’s payroll calculator at the top of this page can help you calculate federal and Indiana payroll taxes. Just enter wage and W-4 information for each employee at the top of this page and the calculator will do the rest, effortlessly letting you check off one of the least glamorous to-dos on your list.

Federal payroll taxes for Indiana employers

First of all, let’s take care of Uncle Sam. Let’s use the calculator to see all your employees’ federal withholdings, as well as any additional taxes your business is responsible for paying. Here’s a quick overview of all you need to know about federal income taxes. For a more detailed explanation on all of the steps below, we invite you to head on over to our more comprehensive step-by-step guide.

  • Gross wages, which is simply the amount of money an employee has earned during the last pay period.
    • For hourly employees, multiply the number of hours worked by their pay rate — and make sure to take overtime into consideration.
    • For salaried employees, divide each employee’s annual salary by the number of pay periods you have over the course of a year.
    • Don’t forget to add any commissions, tips, or bonuses. They all count toward gross wages.
  • Calculate any pre-tax withholdings. If your employees have 401(k) accounts, Flexible Spending Accounts (FSA), Health Savings Accounts (HSA), or any other pre-tax withholdings, subtract them from gross wages because they are exempt from payroll taxes.
  • Deduct federal income taxes, which can range from 0% to 37%. We won’t get into the nitty-gritty details here, but you can find all the information you need by checking out the IRS Publication 15-T.
  • Deduct and match any FICA taxes to cover Medicare and Social Security taxes:
    • For Social Security tax, withhold 6.2% of each employee’s taxable wages until they have earned $168,600 in the 2024 tax year. As an employer, you must match this tax dollar-for-dollar.
    • For Medicare tax, withhold 1.45% of each employee’s taxable wages until they have earned $200,000 in the 2024 tax year. You must also match this tax. For employees who earn more than $200,000 per year, you need to withhold what’s appropriately called the Additional Medicare Tax (super original, right?). The additional rate is 0.9%, bringing the total employee Medicare withholding above $200,000 to 2.35%. Employers are not responsible for paying the Additional Medicare Tax.
  • Pay FUTA unemployment taxes, which is 6% of the first $7,000 of each employee’s taxable income. FUTA comes with one big caveat. You can claim a tax credit of up to 5.4% for state unemployment tax you pay, as long as you pay in full and on time. Only employers are responsible for paying unemployment taxes, so you don’t need to withhold FUTA taxes from your employees’ paychecks.
  • Subtract any post-tax deductions. Most of your employees won’t have any post-tax deductions, but you might be asked to withhold court-ordered wage garnishments, child support, etc.
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2024 Indiana (IN) state payroll taxes

Now that we’re done with federal taxes, let’s talk about Indiana state taxes, shall we?

 

Indiana state income taxes are pretty straightforward. It’s a flat tax rate of 3.05% that every employee pays. But on top of state income taxes, each county charges its own income tax. The State of Indiana website posted a complete list of 2024 tax rates.

Most states require employers to carry workers’ comp, including Indiana. Learn how policies work, how this type of coverage protects employees from workplace injuries and illnesses, and what employers should know in our guide to Indiana workers’ compensation insurance.

Indiana state unemployment insurance (SUI)

As an employer in Indiana, you will have to pay the state unemployment insurance (SUI), which ranges from 0.5% to 7.4% on a wage base of $9,500 per employee. Most new employers pay a flat rate of 2.5%.

 

Cut Those Paychecks!

You’re almost at the finish line! Once you’ve calculated each employee’s net pay, you’ll be ready to spread the wealth. Just don’t forget to set aside the FICA, FUTA, and SUI contributions your business is responsible for paying, or else you’ll have a big tax surprise when year-end rolls around.

 

Use Form 941 to file federal taxes quarterly. Use Form 940 to report your annual FUTA tax. You can pay taxes online using the EFTPS payment system. You can find more details about employment tax due dates here.

Additional Indiana payroll tax resources:

If all that wasn’t enough, and you want to learn more about Indiana payroll taxes, here are a couple of websites we suggest you check out:

 

Indiana Department of Revenue | Withholding Tax Forms | Withholding Taxes | Unemployment | Employer Self Service

 

InTax | Manage Taxes Online

 

These rates are based on local legislation and can change at any time. Always consult a tax professional if you are unsure about your obligations.

More helpful payroll calculators for Indiana employers

Employers in Indiana can use the calculator at the top of this page to quickly calculate their employees’ gross pay, net pay, and deductions. But sometimes employers may need to do a little more math before they are ready to cut paychecks. For example, do you occasionally reward your company’s top performers with bonuses? In Uncle Sam’s eyes, these payments are considered supplemental wages and must have taxes withheld. Also, if you have workers who leave from time to time, you may need to spend some time figuring out their last paychecks. So, if you could use a little more help navigating the numbers, check out some of the calculators listed below.

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Try OnPay out yourself to see how easy payroll and HR can be. To get started, just share a few basic details about your business. Our team of pros will set everything up and import your employees’ information for you.

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