[author: Rena Pirsos, XpertHR Legal Editor]
Effective January 1, 2013, all Indiana employers will be required to file returns and pay taxes electronically. Returns must be filed using either the state Department of Revenue's (DOR's) online INtax system or certified vendors.
Tax payments must be remitted using INtax or electronic funds transfer. An INtax QuickStart Guide is available on the DOR's website, and a taxpayer hotline is available for help with INtax registration (317-232-2337).
The DOR is urging employers to register for electronic filing and payment before January 1, 2013 to avoid the risk of noncompliance penalties.
Employers that have not registered by that date, and employers that have received approved exceptions, will receive six-month withholding coupons by mail.
However, such mailings will stop by the middle of 2013, the coupons will no longer be available at all, and all employers will have to report and remit electronically.
Exceptions from the electronic filing and payment requirement will be granted for religious reasons, employer policies prohibiting electronic filing, and for employers that do not have computers or Internet access.
For employers in the latter two categories, the exemptions will only be temporary; they too will eventually have to file electronically.
Also effective January 1, 2013, quarterly filing will be eliminated. Filing frequency will continue to be based on each employer's average monthly withholding amount in the previous year.
The following are the new threshold amounts and due dates:
Early Filer: If the average monthly withholding tax liability for the preceding year is more than $1,000; returns and payments will be due 20 days after the end of the month.
Monthly Filer: If the preceding year's withholding is less than $1,000; returns and payments will be due 30 days after the end of the month; employers will automatically be defaulted to monthly filing unless the DOR approves the employer for annual filing.
Annual/Calendar Year Filer: If the preceding year's withholding is less than $1,000 and the DOR grants approval (currently no approval is needed); returns and payments will be due January 31 of the following year.
Indiana DOR, Tax Dispatch - Special Edition (July 2012).
[Article:#1418 "Payroll > Depositing and Reporting Withheld Taxes: Indiana"]