payments of wages subject to tax under this article, regardless of the
place where such payment is made, who is required under the
provisions of the Internal Revenue Code to withhold, collect, and pay
over income tax on wages paid by such employer to such employee,
shall, at the time of payment of such wages, deduct and retain
therefrom the amount prescribed in withholding instructions issued by
the department. The department shall base its withholding instructions
on the adjusted gross income
tax rate for persons, of the employee, on
the total rates of any income taxes tax that the taxpayer employee is
subject to under IC 6-3.5, and on the total amount of exclusions the
taxpayer employee is entitled to under IC 6-3-1-3.5(a)(3) and
IC 6-3-1-3.5(a)(4). If the employee is not a citizen of the United
States, the employee shall:
(1) request withholding as if the employee were single, regardless of the employee's actual marital status;
(2) request withholding as if the employee did not have dependents, regardless of whether the employee actually has dependents; and
(3) write "noncitizen" on the form prescribed by the department to determine the employee's exemptions.
Such An employer making payments of any wages:
(1) shall be liable to the state of Indiana for the payment of the tax required to be deducted and withheld under this section and shall not be liable to any
individual employee for the amount deducted
from the individual's employee's wages and paid over in
compliance or intended compliance with this section; and
(2) shall make return of and payment to the department monthly of the amount of tax which under this article and IC 6-3.5 the employer is required to withhold.
(b) (c) An employer shall pay taxes withheld under subsection (a)
(b) during a particular month to the department no later than thirty (30)
days after the end of that month. However, in place of monthly
reporting periods, the department may permit an employer to report and
pay the tax for:
(1) a calendar year reporting period, if the average monthly amount of all tax required to be withheld by the employer in the previous calendar year does not exceed ten dollars ($10);
(2) a six (6) month reporting period, if the average monthly amount of all tax required to be withheld by the employer in the previous calendar year does not exceed twenty-five dollars ($25); or
(3) a three (3) month reporting period, if the average monthly amount of all tax required to be withheld by the employer in the previous calendar year does not exceed seventy-five dollars ($75).
An employer using a reporting period (other than a monthly reporting period) must file the employer's return and pay the tax for a reporting
period no later than the last day of the month immediately following
the close of the reporting period. If an employer files a combined sales
and withholding tax report, the reporting period for the combined
report is the shortest period required under this section, section 8.1 of
this chapter, or IC 6-2.5-6-1.
(c) (d) For purposes of determining whether an employee is subject
to taxation under IC 6-3.5, an employer is entitled to rely on the
statement of an employee as to the employee's county of residence as
represented by the statement of address in forms claiming exemptions
for purposes of withholding, regardless of when the employee supplied
the forms. Every employee shall notify the employee's employer within
five (5) days after any change in the employee's county of residence.
(d) (e) A county that makes payments of wages subject to tax under
(1) to a precinct election officer (as defined in IC 3-5-2-40.1); and
(2) for the performance of the duties of the precinct election officer imposed by IC 3 that are performed on election day;
is not required, at the time of payment of the wages, to deduct and retain from the wages the amount prescribed in withholding instructions issued by the department.
(e) (f) Every employer shall, at the time of each payment made by
the employer to the department, deliver to the department a return upon
the form prescribed by the department showing:
(1) the total amount of wages paid to the employer's employees;
(2) the amount deducted therefrom in accordance with the provisions of the Internal Revenue Code;
(3) the amount of adjusted gross income tax deducted therefrom in accordance with the provisions of this section;
(4) the amount of income tax, if any, imposed under IC 6-3.5 and deducted therefrom in accordance with this section; and
(5) any other information the department may require.
Every employer making a declaration of withholding as provided in this section shall furnish the employer's employees annually, but not later than thirty (30) days after the end of the calendar year, a record of the total amount of adjusted gross income tax and the amount of each income tax, if any, imposed under IC 6-3.5, withheld from the employees, on the forms prescribed by the department.
(f) (g) All money deducted and withheld by an employer shall
immediately upon such deduction be the money of the state, and every
employer who deducts and retains any amount of money under the
provisions of this article shall hold the same in trust for the state of
Indiana and for payment thereof to the department in the manner and
at the times provided in this article. Any employer may be required to
post a surety bond in the sum the department determines to be
appropriate to protect the state with respect to money withheld pursuant
to this section.
manner as allowed by Section 3510 of the Internal Revenue Code.
(l) (m) The department shall adopt rules under IC 4-22-2 to exempt
an employer from the duty to deduct and remit from the wages of an
employee adjusted gross income tax withholding that would otherwise
be required under this section whenever:
(1) an employee has at least one (1) qualifying child, as determined under Section 32 of the Internal Revenue Code;
(2) the employee is eligible for an earned income tax credit under IC 6-3.1-21;
(3) the employee elects to receive advance payments of the earned income tax credit under IC 6-3.1-21 from money that would otherwise be withheld from the employee's wages for adjusted gross income taxes; and
(4) the amount that is not deducted and remitted is distributed to the employee, in accordance with the procedures prescribed by the department, as an advance payment of the earned income tax credit for which the employee is eligible under IC 6-3.1-21.
The rules must establish the procedures and reports required to carry out this subsection.
(m) (n) A person who knowingly fails to remit trust fund money as
set forth in this section commits a Class D felony.".