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If your company is located in the state of Indiana or if your employees work in Indiana, then be sure to follow these instructions in order to properly set up the Payroll system.
| 1. | Payroll Integrity Tests - If Indiana does not show up on the State Payroll Tax Information screen, then select the Payroll > Integrity Tests > All Tests option to add Indiana (state code 18) to the company costates.adt table. |
| 2. | Payroll Properties - For check stub purposes, miscellaneous deduction accumulator #6 should be set up with a description of 'County' or 'Local' through the Payroll > Properties > Misc Pays / Deds option. AccuBuild will always use deduction #6 for the Indiana county taxes. AccuBuild will accrue all of the county tax in the account specified on the State Payroll Tax Information Screen. |
| 3. | Local Deductions - AccuBuild will automatically set up codes -1001 through -1092 in the local deduction table for the various county taxes. These codes are not visible on the Local Deduction Codes Screen but they may be viewed by opening the localtax.adt table through the File > Browse Data option. The Indiana county tax codes are maintained internally by AccuBuild so if the user attempts to change any of these codes, AccuBuild will automatically reset the table values according to the current Indiana tax laws. |
| 4. | Employee Information - On the State Taxes Tab of the Employee List Screen, select the Indiana state code. Using the information from the Employee's Withholding Allowance Certificate (Form W-4), fill in the employee's exemption information and the County of Residence and County of Employment fields. The employee's county information is established only once every year and represents the employee's county status as of January 1. The county settings must remain intact for the entire year regardless of any change in the employee's status. |
| 5. | Enter Employee Beginning Balances - To establish existing year-to-date totals for Indiana county taxes, use timecard transaction code 99 and select the proper county tax from the local deduction code list. Note: If your default state is not Indiana, then you will need to skip the local deduction code first, then select the state code for Indiana. This will allow the system to display the Indiana county tax codes in the local deduction code field. |
| 6. | Payroll Processing - When taxes are calculated for Indiana, the county tax is calculated based on the state wages after deducting the personal and dependent exemptions. The Indiana State Withholding tax is calculated in the same manner. |
| 7. | County Tax Reporting - Use the File > System Administrator > Report Substitution option to replace report prsumrpt.adt with prsumind.adt. This version of the Employee Local Deduction Report in the payroll system can be used to recap the Indiana County Taxes for any payroll period and should be printed based on the transaction (check) date. This report will include separate totals for each county representing resident and non-resident amounts that may be required for year-end reporting purposes. |
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