Indiana county income tax is determined by the resident address entered for the employee as of January 1 of the current year. This withholding doesn't change until January 1 of the following year, even if the employee moves in the middle of the year.
Follow these steps if the withholding county needs to be changed in Accounting CS.
Select
Setup
,
Employees
, then
Edit
.
Update the address for the employee on the
Main
tab.
On the
Payroll Taxes
tab, select
County
in the
State Withholding
section.
Use the dropdown to change the
Residency Start Date
for each county listed.
note
You'll need to mark the
Resident address
checkbox for the address to be used to specify the employee's tax liabilities.
If an employee moved out of Illinois and works outside of Indiana too, they're no longer expected to withhold Indiana county tax. However, if the employee moved out of Indiana but still works in Indiana, they're still subject to an Indiana county tax.