Indiana Code 22-4-13.3-4. Employer’s duties related to income withholding; fee for withholding income
(1) Verify the individual’s employment to the department.
Terms Used In Indiana Code 22-4-13.3-4
- employment: includes service performed by a driver who provides drive away operations when the services are being performed by an individual who is in the employ of a state or local government entity or federally recognized Indian tribe as defined in Section 3306(c)(7) of the Federal Unemployment Tax Act (26 U. See Indiana Code 22-4-8-3.6
- Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor
(A) determined in accordance with; and
(B) subject to the limitations of and priority established by;
IC 24-4.5-5-105 in the same manner as a garnishment. An income withholding under this chapter is not an assignment of wages under IC 22-2-6.
(3) Begin withholding the amount determined under subdivision (2) from the individual’s income beginning with the first pay period that occurs not later than fourteen (14) days after the date the employer receives the notice sent under section 3 of this chapter.
(4) Remit the amount withheld under subdivision (2) to the department by check or electronic payment (as defined by IC 5-27-2-3) not later than seven (7) days after the date of each regularly scheduled pay day.
(5) Continue withholding under this section until:
(A) the department notifies the employer to discontinue the withholding; or
(B) the full amount required to be paid to the department has been paid, as indicated by a written statement to the employer from the department.
(6) Notify the department, if the individual subject to withholding terminates employment, including the individual’s last known address and the name of any new employer, if known.
(b) An employer that is required to withhold income under subsection (a)(2) may collect a fee equal to twelve dollars ($12). If the employer chooses to impose a fee, the fee shall be allocated as follows:
(1) Fifty percent (50%) of the fee shall be paid by the individual subject to withholding, and that amount is deductible by the employer from the individual’s disposable earnings (as defined in IC 24-4.5-5-105(1)(a)).
(2) Fifty percent (50%) of the fee shall be paid by the department.
The fee may be collected only once by an employer for each notice provided by the department under section 3 of this chapter. The employer may collect the entire fee from one (1) or more of the initial withholdings from the individual’s disposable earnings, or alternatively, the employer may collect the fee ratably over the number of pay periods for which the withholdings from the individual’s disposable earnings are required. If an employer chooses to collect a fee under this subsection, the employer shall notify the department in the manner and form prescribed by the department, and the amount to be withheld must be reduced, if necessary, to avoid exceeding the maximum amount permitted to be deducted under IC 24-4.5-5-105(3). A fee collected under this subsection is not an assignment of wages under IC 22-2-6.
As added by P.L.183-2015, SEC.5. Amended by P.L.66-2018, SEC.2.