Indiana Payroll 2023 WH-3


2023 Indiana Payroll Withholding Notices

Within the last week we’ve had several clients receive payroll tax notices via INTIME from the Indiana Department of Revenue (IDR) and we are alerting you about an issue we’ve become aware of regarding the filing of your Indiana WH-1s.

Some clients are receiving notices from IDR stating their 2023 WH-3 doesn’t agree to the WH-1s filed for 2023.  We’ve found that due to a glitch in IDR’s system for certain months during the 4th quarter of 2023, the county withholding on the WH-1 was not reported to IDR correctly.  In the cases we have reviewed thus far, the months of October and November were impacted. The good news is that the correct taxes due (including county withholding) were remitted to IDR. However, since IDR doesn’t show the county withholding on the WH-1, an overpayment was issued by the state and carried over to the next month as a credit. Now that employers have filed the annual WH-3, IDR is matching the WH-3 with the monthly WH-1s and finding they do not agree. IDR has begun assessing a county tax withholding estimate amount based off the WH-3, resulting in a balance due plus penalty and interest.

We advise that you review your INTIME account as soon as possible for any payroll withholding notices to make sure everything has been filed correctly for 2023. If you are an employer that has been impacted and received a tax notice, we advise that you contact your payroll provider to have them issue an amended WH-1 for the month(s) where IDR is missing the county tax withholding amount.

Once the WH-1 has been amended, a message to IDR via INTIME may likely be needed to have them update and correct the payroll account to show that all withholdings have been paid and there should be nothing due for 2023.

If your payroll provider will not file the amended WH-1 or will not file it in a timely manner, you can also file an amended WH-1 directly through INTIME.

If you need any assistance with this process, please reach out to your main Greenwalt contact and we can help review if your business was impacted and how to get it resolved.