Payroll Compliance Guide

Indiana Payroll Compliance Guide

Complete Reference for Multi-State Employers

Last updated: January 2025 • 60+ requirements covered

Key Facts at a Glance

RequirementIndiana Rule
Minimum Wage$7.25 (federal)
Tipped Minimum$2.13 + tips
Overtime Threshold40 hours/week (no daily OT)
Final Pay (Termination)Next regular payday (24 hrs if written request)
Final Pay (Resignation)Next regular payday
PTO Payout Required?No (unless policy requires)
Pay Frequency MandateBi-weekly or semi-monthly minimum
State Income TaxYes (3.05% flat rate)
County Income TaxYes (0.5% - 3%+ varies by county)
Unemployment InsuranceYes
State Disability InsuranceNo
Paid Family LeaveNo
Paid Sick LeaveNo
Workers' Comp RequiredYes (all employers)

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Local Jurisdiction Rules

Indiana counties have local income taxes with varying rates that employers must withhold based on employee residence.

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Looking for a different view? Check out the Indiana Payroll Laws overview page with final paycheck, vacation payout, and wage & hour details.