How to enter Indiana employee withholding exemptions in Sage 100

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.

CAUTION: 

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)]