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How to enter Indiana employee withholding exemptions in Sage 100

Created on  | Last modified on 

Summary

How to enter Indiana employee withholding exemptions into Sage 100, including Indiana Adopted Qualifying Dependent exemptions and Indiana Qualifying Dependent exemptions.

Cause

In June, 2023, the Indiana Department of Revenue released a revised Employee’s Withholding Exemption and County Status Certificate (Form WH-4) to enact the changes outlined in Indiana Department of Revenue, Department Notice #1 effective for wages paid on or after September 14, 2022. Included in the notice was information pertaining to how to figure the Qualifying First-time Dependent Exemption, as claimed on Line 7 of the revised WH-4 form.





Resolution

CAUTION: Sage support can't assist with third-party products, hardware, report customizations, or state and federal tax questions. Refer to our Scope of Support for more info. Contact your Sage business partner, network administrator, or accountant for assistance.

NOTE: This tax calculation change will be included in the Payroll Tax Table Update deployed on September 21, 2023.

If an Indiana employee submits a revised Indiana WH-4 form and has a numeric value entered on Line 7, in order for the Indiana withholding tax to calculate correctly you will need to do the following in Sage 100:

  1. In Employee Maintenance, click on the Taxes tab
  2. On the line for the Indiana tax group, enter the folllowing:
    • Pers Exemptions = Total Exemptions reported on Line 5
    • Dep Exemptions = Line 6 (Qualifying dependent) + Line 7 (Adoptive qualifying dependents) + (Line 8 (Adoptive qualifying dependents) x 2)

Example: Using values entered in screen shot of the revised Indiana WH-4 form below, where the Indiana WH-4 form has; Line 5 is 5, Line 6 is 3, Line 7 is 1 and Line 8 is 2. 

In Sage 100 you would enter the following on the Taxes tab in Employee Maintenance: 

  • Pers Exemptions = 5 = [Line 5] 
  • Dep Exemptions = 8 = (3 + 1 + (2*2)); [Line 6 + Line 7 + (Line 8 * 2)]