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) 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) A county that makes payments of wages subject to tax under this article:
(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) 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
under this article and IC 6-3.5, and, should the amount withheld under
the provisions of this section be insufficient to pay the total tax of such
taxpayer, such unpaid tax shall be paid at the time prescribed by
section 5 of this chapter.
(j) Notwithstanding subsection (b), an employer of a domestic service employee that enters into an agreement with the domestic service employee to withhold federal income tax under Section 3402 of the Internal Revenue Code may withhold Indiana income tax on the domestic service employee's wages on the employer's Indiana individual income tax return in the same manner as allowed by Section 3510 of the Internal Revenue Code.
(k) To the extent allowed by Section 1137 of the Social Security Act, an employer of a domestic service employee may report and remit state unemployment insurance contributions on the employee's wages on the employer's Indiana individual income tax return in the same manner as allowed by Section 3510 of the Internal Revenue Code.
(l) 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) A person who knowingly fails to remit trust fund money as set forth in this section commits a Class D felony.
(n) An employer who is required under subsection (a) to withhold income tax from payments of wages shall verify that an employee who claims exemptions for more than two (2) individuals under IC 6-3-1-3.5(a)(3), IC 6-3-1-3.5(a)(4)(A), IC 6-3-1-3.5(a)(4)(C), and the withholding instructions issued by the department under subsection (a) is entitled to claim exemptions for more than two (2) individuals. Unless an employer knows an employee's representations are false, the requirement of this subsection is satisfied if the employer obtains from the employee a copy of one (1) of the following for each additional individual for
whom the employee claims an exemption:
(1) A birth certificate.
(2) A Social Security card.
(3) A marriage license.
(4) A driver's license or state issued identification card.
(5) A federal document establishing lawful permanent residence or naturalization.
(6) A passport.
(7) A court order establishing paternity.
(o) An employer commits a Class A misdemeanor if the employer knowingly:
(1) pays wages to an employee who has claimed more than two (2) income tax withholding exemptions;
(A) fails to verify the employee's claimed withholding exemptions as required by subsection (n); or
(B) accepts a document described in subsection (n) for verification of the employee's claimed withholding exemptions that is false or fictitious; and
(3) withholds less income tax from the payment of wages to the employee than required by the withholding instructions issued by the department.
(p) An employee commits a Class A misdemeanor if the employee knowingly furnishes to an employer a document described in subsection (n) that is false or fictitious for the purpose of claiming more income tax withholding exemptions than the employee is entitled to claim under the withholding instructions issued by the department.".