Indiana Department of Revenue Posts a New Departmental Notice #1
Article ID: 1012527
Overview
The Indiana Department of Revenue (the "Agency") has posted a new Departmental Notice #1 ("Notice") with the effective date of October 1, 2009. This document provides information on how to compute withholding for state and county income taxes as well as a detailed list of all county tax rates. A copy of the Notice can now be found on the Agency's web site located at here.
Information
Frequently Asked Questions
How do I know if I'm affected?
You may be affected if you currently withhold Indiana state and county income taxes from employee's wages or have a valid Indiana Taxpayer ID Number.
What steps do I need to take next?
View Page 2 of the Notice to see if your employees' county tax rates have changed. Rate increases or decreases will be noted by an asterisk (*). If a county is bold and underlined, a new county income tax has been adopted.
- If your employee's county tax rate has changed or if you want to verify your employees county tax rate in QuickBooks:
- Go to the Employee Center.
- Double click on a subject employee.
- In the Change tabs drop-down, select Payroll and Compensation Info.
- Select the Taxes tab and then the Other tab.
- In the designated area for Indiana County %, enter the county tax rate as a percent. For example, the Resident Rate for Adams County lists 0.01124. Convert and enter the rate in QuickBooks as a percentage of 1.124%.
- Click OK twice.
- Change the county tax rate for each subject employee.


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