TAXES 16-34, Indiana County Income Tax Withholding
Published: December 29, 2016
Effective: Pay Period 25, 2016
Summary
Effective January 1, 2017, there will be only one tax rate, per locality, that will be imposed on both residents and nonresidents who are subject to the Indiana county tax. Nonresidents will no longer be subject to a different tax rate. No action on the part of the employee or the personnel office is necessary.
Tax Formula
Acceptable Exemption Form: |
IN WH-4 |
Acceptable Exemption Data: |
A-Z, 0/Number of Dependents |
Special Coding: |
Determine the Total Number of Exemptions field as follows: Second and Third Digits - Enter the number of exemptions claimed. (If less than 10, precede with a 0 (zero).) |
Withholding Formula (Effective Pay Period 25, 2016)
- Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account - health care and dependent care deductions) from the gross biweekly wages.
- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages times 26 to obtain the annual wages.
- Determine the exemption allowance by applying the following guideline and subtract this amount from the result of step 3:
Exemption Allowance = $1,000 x Number of Exemptions1
1 Number of exemptions claimed for self, spouse, over age 65, blindness, and dependents. - Determine the exemption allowance by applying the following guideline and subtract this amount from the result of step 4 to compute the taxable income:
Additional Allowance = $1,500 x Number of Additional Exemptions 2
2 Number of additional exemptions claimed for certain qualifying dependents. - Apply the taxable income to the following guideline in the table below to determine the annual Indiana county income tax withholding:
3 Voluntary county tax status.Compute the County Income Tax Withholding For:
Tax Rate Percentage
State/County Code
Allen
1.35
18/003
Clay
2.25
18/021
Grant
2.25
18/053
Greene3
1.25
18/055
Marion
1.77
18/097
Martin
1.50
18/101
Miami
2.54
18/103
Tippecanoe
1.10
18/157
Vanderburgh
1.00
18/163
- Divide the annual Indiana county income tax withholding calculated in step 7 by 26 to obtain the biweekly Indiana county income tax withholding.
Resources
To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) homepage. Select the Publications tab in the center ribbon. Select U.S. Income Tax Formulas from the Publication menu to launch the tax map. Select the desired State from the map provided for the formula.
Inquiries
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the Internet using the Requester Console.