Payroll and Benefits Guide - United States - Indiana

United States - Indiana
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Currency

United States Dollar
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Capital

Indianapolis
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Employer Taxes

11.25% – 23.55%
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Date Format

mm/dd/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Indiana is located in the Midwestern region of the United States.

It is known as the “Hoosier State,” and its residents are often referred to as Hoosiers.

The state capital of Indiana is Indianapolis, which is also the largest city in the state.

Indiana is famous for the Indianapolis 500, one of the most prestigious auto racing events in the world.

Indiana is home to the Indianapolis Colts, an NFL team, and the Indiana Pacers, an NBA team.

The first long-distance auto race in the United States was held in Indiana in 1895.

United-States-Indiana

Contributions

Employee Payroll Tax

Contribution TypeRate
FICA Social Security6.20%
FICA Medicare1.45%
Additional tax0.90%

Employer Payroll Tax

Contribution TypeRate
Unemployment0.50% – 7.40%
Unemployment- New Employer2.50%
FICA Social Security6.20%
FICA Medicare1.45%
FUTA0.60% – 6.00%

Payroll

Payroll Cycle

Employees are paid monthly or semi-monthly.

13th Salary

There are no provisions in the law regarding 13th salaries.

Work Hours and Week

In Indiana, the workweek is a maximum of 40 hours per week or 8 hours per day.

Overtime

In Indiana, the Fair Labor Standards Act (FLSA) applies, and overtime pay is given for work exceeding 40 hours per week at 150% of the regular pay. Working on weekends or rest days generally doesn’t require extra payment unless under exceptional circumstances, in which case overtime pay is also at 150% of regular pay.

United-States-Indiana

Leave

Paid Time Off

There are no statutory laws on paid time off in Indiana.

Public Holidays

There are 10 Public holidays

Sick Days

It is common for an employer to follow the Family and Medical Leave Act (FMLA) which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons (maternity leave, serious illnesses, or if the employee needs to care for a spouse or child).

Employees are eligible for FMLA if they have worked for their employer for at least one year, completed a minimum of 1,250 hours over the past year, and worked at a location where the company employs 50 or more employees within 75 miles.

Maternity Leave

Maternity Leave falls under the FMLA (see Sick Leave).

Paternity Leave

Paternity leave falls under the FMLA (see Sick Leave).

Parental Leave

Parental leave falls under the FMLA (see Sick Leave).

Termination

Termination Process

Except in mass dismissals or as provided for in an employment contract or a collective bargaining agreement, U.S. law does not impose a formal notice period to terminate an individual employment relationship, and employment is stipulated “at will.”

Notice Period

Indiana follows an “at-will” employment policy, allowing termination without notice. There is no legal requirement for payout of unused vacation days, but employers usually compensate if given advance notice. Six weeks’ notice is commonly expected. The WARN Act mandates 60 days’ notice for mass dismissals.

Severance Pay

Except when outlined in an employment contract or collective bargaining agreement, employers are not required not make severance payments. However, many employers choose to offer severance pay and base the amount on the length of employment.

Probation Period

Probation Period

There are no provisions in the law regarding probation or trial periods. It is common practice for employers to set a performance evaluation after an initially stated period of employment of 90 days.

Immigration

Foreign nationals without permanent resident status or a work visa are not permitted to work in the United States. An employer seeking to hire a foreign national may file a petition with the United States Department of Homeland Security or the United States Citizenship and Immigration Services (USCIS) for an employment visa on behalf of the prospective employee. If the petition is approved, the prospective employee must obtain a visa stamp from a United States embassy or consulate (Canadian citizens are exempt from this requirement). To get a temporary U.S. work visa, an employer must file a petition with U.S. Citizenship and Immigration Services (USCIS). An approved petition must be part of the visa request.

For Work Permits

H-1B

H-1B1

H-2A

H-2B

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VAT

Indiana has a flat-rate sales tax rate of 7%.