This page contains information for employees in the following situations:
- Living and working in Indiana
- Living outside but working in Indiana
- Living and working outside of Indiana
Use the Table of Contents button to the right to jump to a section or instructions.
Living and Working in Indiana
Local taxes are determined by where the employee lives and works on January 1st of each given year.
Employees who are Indiana residents are expected to verify that their local (county) withholding is correct, on a regular basis, by reviewing their paychecks.
Employees who live and work in Indiana can manage their state withholdings in the Employee Center task tile in One.IU. We encourage staff to use the Paycheck Modeler or Savings Tool to calculate your potential take-home pay based on changes to tax withholding and other scenarios.
If an employee has a change in their county of residence or employment during a year, they must make updates to their Indiana WH-4 in Employee Center. Please note, tax data in a new year populates based on the most recent entry (Change in Job Location data via edoc, Employee Center update, or a manual update by University Payroll).
New WH-4s submitted in mid-to-late December will take effect in the next calendar year.
If the employee was previously a resident of a different state and relocates to Indiana, the employee will need to update their State and Local withholding:
Steps to Update State and Local Withholding
- Notify and receive approval from your supervisor. Your supervisor will contact IUHR who will facilitate the processing of an eDoc to begin the update process.
- Once an edoc has been processed to move your job location to IN, update your IN WH-4 in Employee Center.
- Review your future paychecks for accuracy.
Living Outside but Working in Indiana
A reciprocity agreement (KY, MI, OH, PA, or WI) does not exempt employees from applicable local income taxes, such as county taxes, for the state of Indiana or taxes imposed in your state of residence.
Indiana requires your Indiana wages to be subject to local income tax based on your principal place of employment as of January 1. Therefore, work in an Indiana county will result in Indiana local taxes withheld for that county. The county will default based on the campus of your job record in the HR system.
We encourage staff to use the Paycheck Modeler or Savings Tool to calculate your potential take-home pay based on changes to tax withholding and other scenarios.
Living and Working Outside of Indiana
If you are working outside of Indiana, note that some states do not have taxing localities and therefore taxes will not be withheld.
If you relocate, please be sure to review all required steps to update your State tax information here: Steps to update State tax information
We encourage staff to use the Paycheck Modeler or Savings Tool to calculate your potential take-home pay based on changes to tax withholding and other scenarios.
Information regarding Local taxes and your W-2 can be found here:
Click here to view additional information regarding Local taxes on your W-2.