EPY: Indiana Allowance Is Not Being Deducted When Hours Are Splitted Between IN And IL. (Doc ID 3024892.1)

Last updated on MAY 28, 2024

Applies to:

Symptoms

 If an IN resident has elected an allowance on their IN WH-4, and their pay hours are split between IN and IL, PS is not deducting the 2024 bi-weekly IN allowance of $38.46 before calculating their 3.05% IN tax.
If the same IN resident does not have their hours split, their allowance of $38.46 is correctly being deducted before their 3.05% tax rate is calculated.

Per the IN Department of Revenue, all IN residents are entitled to at least 1 allowance, regardless of the taxable amount or if hours were split among another state.

Steps to reproduce the issue:

1. Select an hourly employee, biweekly paygroup.
   
2. Navigate to Payroll for North America > Employee Pay Data USA >  Update Employee Tax Data, select the employee and add the following data:

Effective Date: 01/01/2024

State: IN
Resident and UI Jurisdiction checked
Withholding Allowances: 1

State: IL
Resident and UI Jurisdiction unchecked
Withholding Allowances: 1

3. Navigate to Payroll for North America > Payroll Processing USA > Create Online Checks and create an online check splitting hours between the 2 states.

4 . Calculate and review the taxes.

Changes

Cause

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