Indiana State Tax

The State of Indiana differentiates between the exemptions that an employee claims for him or herself (and spouse), and the exemptions that an employee claims for dependents. To calculate the withholding correctly in Sage 100 Contractor, enter the exemptions from the WH-4 Employee’s Withholding Exemption Certificate separately in the employee record.

To set up payroll calculations on an employee for Indiana State Tax:

1. Open 5-2-1 Employees.

2. Using the data control, select the employee.

3. Click the Calculations tab.

4. In the Std Allow cell of the Indiana Income Tax row, enter the total number of standard exemptions from line 5 of the Indiana Withholding Exemption Certificate.

5. In the Add Allow column in the Indiana Income Tax row, enter the total number of additional exemptions from line 6 plus 2 times the number of additional exemptions from line 7 of the Indiana Withholding Exemption Certificate.

   Note: Indiana allows an additional exemption for adoptions of qualifying dependents that is double the usual amount for non-adoptive exemptions. Therefore, you need to double the number from line 7 for this calculation.

6. Click File > Save.