Capital City
Indianapolis
Timezone
EST
(
GMT-5
)
Paid Leave
Sick & Voting Leave
Income Tax
3.05%
Employer Tax
0.5% -7.4%
Capital City
Indianapolis
Timezone
EST
(
GMT-5
)
Paid Leave
Sick & Voting Leave
Income Tax
3.05%
Employer Tax
0.5% -7.4%
Indiana adheres to federal minimum wage standards, with a minimum wage of $7.25 per hour. Overtime must be paid at 1.5 times the regular rate for hours worked beyond 40 in a week. Employers are required to report new hires within 20 days and must comply with a flat state income tax rate of 3.23%, in addition to county taxes. State unemployment insurance taxes apply to the first $9,500 of an employee's earnings, with rates determined by the employer's experience.
Access competitive benefits like health insurance and retirement plans, often at a lower cost through a PEO. Leverage its pooled volume for enterprise rates - resold to PEO customers, with no employment minimums in Indiana.
Check out our comprehensive state hiring guide.
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FAQS
A PEO assists Indiana businesses by ensuring adherence to state and federal labor laws, managing payroll taxes, maintaining proper employee documentation, and keeping abreast of regulatory changes to mitigate compliance risks.
Yes, PEOs operating in Indiana are subject to state regulations and must adhere to specific licensing and operational requirements to ensure they provide compliant services to their clients.
Absolutely, PEOs can provide small businesses in Indiana with access to comprehensive HR services, competitive benefits packages, and compliance assistance, enabling them to focus on core business operations and growth.
Yes, a PEO can help businesses maintain compliance with Indiana employment laws by managing HR functions, ensuring proper tax withholdings, and keeping up-to-date with state-specific regulatory requirements.
Terminating a relationship with a PEO in Indiana typically involves following the terms outlined in the service agreement, which may include notice periods and transition plans to ensure a smooth handover of HR responsibilities back to the business.
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