Indiana County Income Taxes

An Indiana worker's home and work addresses as of January 1 of the tax year determines their county income taxes. This impacts courtesy taxes and how you manage location changes.

Location changes

If a person changes their work or home location after January 1, use their Tax Withholding card overrides to retain the original residence or employment county for tax reporting purposes.

What you want to do	How you do it
Override the person's home location	Open their Tax Withholding card for editing. In Regional, open the Indiana component for editing. In Indiana County of Residence as of Jan 1, select the employee's original county as of January 1. Save your work.
Override the person's work location	Open their Tax Withholding card for editing. In Regional, open their Indiana component for editing. In Indiana County of Principal Employment as of Jan 1, select the employee's original county as of January 1. Save your work.
Prepare for begin-of-year	Before you can run the first payroll of the new year, you must revert these overrides. As part of your year-begin processes, run the Run Start-of-Year Process and select the Indiana state update data type.

What you want to do

How you do it

Override the person's home location

Open their Tax Withholding card for editing.
In Regional, open the Indiana component for editing.
In Indiana County of Residence as of Jan 1, select the employee's original county as of January 1.
Save your work.

Override the person's work location

Open their Tax Withholding card for editing.
In Regional, open their Indiana component for editing.
In Indiana County of Principal Employment as of Jan 1, select the employee's original county as of January 1.
Save your work.

Prepare for begin-of-year

Before you can run the first payroll of the new year, you must revert these overrides.

As part of your year-begin processes, run the Run Start-of-Year Process and select the Indiana state update data type.

Courtesy taxes

Because of how Indiana determines their county income taxes, Oracle Cloud Payroll for the US doesn’t support courtesy taxes for them. If you enter a value for the county tax withholding rule, the payroll process ignores it.