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overtaxed72
Level 3

Indiana State Withholding percentage is wrong

Good Afternoon Community,

 

This is the second payroll in 2023 and I see that the State Withholding rate has not been changed.  Indiana went from 3.15% to 3.05% on January 1st.  I also have a county that had a rate change that still has the old rate in it.  I don't see anywhere where I can change the State Rate, I assumed that came in a payroll update.  I ran all the updates but it does not appear to have updated the rate.  Any advice?

 

Thanks for your help

2 Comments 2
Ethel_A
QuickBooks Team

Indiana State Withholding percentage is wrong

Hello there, @overtaxed72 .

 

I'll help you update Indiana State Tax withholding in QuickBooks Desktop Payroll.

 

First, I recommend updating your tax table to the latest release. Refer to this article: Get the latest tax table update in QuickBooks Desktop Payroll.

 

Once done and you still have the same issue, you can manually update it.

 

If an employee lacks the necessary permissions, they must contact their employer to request changes to the form. The primary/company admin and standard user with payroll access can modify the data in Form W-4 and adjust the state withholding tax rate. 

 

Here are the steps to follow:

 

  1. Find payroll discrepancies.
  2. Adjust your payroll liabilities.
  3. Check if the liabilities are updated.

 

Here is an article for the detailed steps: Adjust payroll liabilities in QuickBooks Desktop Payroll.

 

Feel free to click the Reply button below if you have questions about updating state tax withholding in QuickBooks Desktop Payroll. I'm always here to help. Have a great day.

overtaxed72
Level 3

Indiana State Withholding percentage is wrong

Thank you for your reply,

 

I ran the payroll updates already, it did not update the State rate.  I talked to QB through chat and they said I cannot update the State rate, that I have to wait until QB has the update from the State and provides it in an update.  Seems odd to me that the State of Indiana has not provided an updated tax table as we have known for quite some time the State rate would be reduced on 01/01/24.  The person I chatted with said it should be provided by 2/22/24 which will be a mess in my mind as I will have already withheld at the wrong rate for almost 2 months and will have had to pay January before 2/22/24.  

 

I guess I'll figure it out as we go

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