SB 320 – Withholding Tax Remittance
Authored by Sen. Linda Rogers (R-Granger)
Provides that the state Department of Revenue (DOR) shall only accept payment of employer withholding taxes that are made or withdrawn directly from the business account of the employer that is liable for withholding and remitting the tax. However, provides an exception from the requirement for employers that submit a waiver to the department. Specifies provisions for the waiver. Prohibits the department from accepting payment of employer withholding taxes that are made or withdrawn from the account of a third party withholding agent, or otherwise remitted by a third party withholding agent, on behalf of an employer, except in the case of an employer that has submitted a waiver. Full details.
Chamber position: Support in part/oppose in part
The latest: Amended on second reading, then passed by the full Senate 48-1.
The bill was again amended so that it now allows all employers the ability to waive the application of the provisions of this bill and continue to maintain their current arrangements with their payroll service provider.
Indiana Chamber action/commentary: The Chamber welcomes the changes that have been made to the bill that give employers the choice to continue to have their payroll company remit Indiana withholding taxes on their behalf. We support measures designed to lessen the potential for payroll companies to misappropriate an employer’s funds. But we remain opposed to the imposition of structural changes that will disrupt the conveniences that payroll companies provide, and employers enjoy, until the full potential impacts have been studied. Alternative remedies need to be explored after receiving greater input from the payroll industry, their customers and DOR.
Resource: Bill Waltz at (317) 264-6887 or email: [email protected]