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) 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.
(g) The provisions of IC 6-8.1 relating to additions to tax in case of delinquency and penalties shall apply to employers subject to the provisions of this section, and for these purposes any amount deducted or required to be deducted and remitted to the department under this section shall be considered to be the tax of the employer, and with respect to such amount the employer shall be considered the taxpayer. In the case of a corporate or partnership employer, every officer, employee, or member of such employer, who, as such officer, employee, or member is under a duty to deduct and remit such taxes, shall be personally liable for such taxes, penalties, and interest.
(h) Amounts deducted from wages of an employee during any calendar year in accordance with the provisions of this section shall be considered to be in part payment of the tax imposed on such employee for the employee's taxable year which begins in such calendar year, and a return made by the employer under subsection (b) shall be accepted by the department as evidence in favor of the employee of the amount so deducted from the employee's wages. Where the total amount so deducted exceeds the amount of tax on the employee as computed under this article and IC 6-3.5, the department shall, after examining the return or returns filed by the employee in accordance with this article and IC 6-3.5, refund the amount of the excess deduction. However, under rules promulgated by the department, the excess or any part thereof may be applied to any taxes or other claim due from the taxpayer to the state of Indiana or any subdivision thereof. No refund shall be made to an employee who fails to file the employee's return or returns as required under this article and IC 6-3.5 within two (2) years from the due date of the return or returns. In the event that the excess tax deducted is less than one dollar ($1), no refund shall be made.
(i) This section shall in no way relieve any taxpayer from the
taxpayer's obligation of filing a return or returns at the time required
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.".