Guide
Indiana first employee checklist (state registrations)
Key takeaways
- Indiana withholding registration is handled by the Department of Revenue; unemployment tax is handled by DWD.
- SUTA applies to the first $9,500 of wages; DWD lists 2.50% as a typical new-employer rate.
- New hires must be reported electronically within 20 days (IC 22-4-10-8).
- Most employers must carry workers' compensation from the first employee; confirm exemptions in the current statute.
On this page
Hiring your first W-2 employee in Indiana is not only a federal payroll job. You also have state withholding, state unemployment tax, new-hire reporting, workers' compensation, and poster duties. This page collects those Indiana registrations in one place, with links to official agency pages. It is a planning checklist, not a filing service.
Start with a federal EIN
Get a free Employer Identification Number from the IRS before you open state payroll accounts or file employment tax returns. Apply at the IRS EIN application page. You will use the same EIN on Indiana withholding and unemployment accounts.
Register for Indiana withholding
If you will have employees working in Indiana, register for withholding tax with the Indiana Department of Revenue. DOR's withholding pages explain how to add the tax type to an account and how withholding returns work. Have the employee complete federal Form W-4 on the first day; the IRS Hiring employees page covers withholding if a W-4 is missing.
Register for Indiana unemployment tax (SUTA)
State unemployment tax is administered by the Department of Workforce Development, not DOR. DWD's rate computation page states that premiums are based on the first $9,500 of gross wages per employee per calendar year. It lists a typical new-employer rate of 2.50% (maximum cost $237.50 per employee if paid timely), a 0.50% minimum, a 7.40% maximum in good standing, and a 9.40% maximum delinquent rate. Your assigned rate may differ. The U.S. DOL January 2026 state UI table shows the same $9,500 wage base and 2.50% new-employer rate.
Report the new hire within 20 days
Indiana requires employers to report newly hired and rehired employees electronically to the Indiana New Hire Reporting Center within 20 days of the hire or rehire date (IC 22-4-10-8 and federal new-hire law). DWD's new-hire reporting page lists required data and notes that failure to report can result in a $25 fine per employee, or up to $500 if a conspiracy is found. Federal background is at ACF.
Put workers' compensation in force
IC 22-3-5-1, quoted on the Worker's Compensation Board compliance page, requires covered employers (except those exempted by IC 22-3-2-5) to carry insurance or obtain Board approval to self-insure. The Board's Who Is Eligible page says most businesses must have coverage and that an employee is covered from the first day on the job. Independent contractors who are not required to carry coverage may need a clearance certificate from DOR. Advisory class rates are discussed in our workers' comp guide and the class 5183 explainer. Get a quote from a licensed carrier; do not treat a website estimate as a binder.
Posters and first-day forms
Display free federal posters using the DOL FirstStep Poster Advisor. Indiana also requires the unemployment insurance poster from DWD, posted where employees can see it (the same DWD new-hire page links the poster). On day one, complete Form I-9 for every hire, including U.S. citizens.
After registrations are in place, set up payroll so deposits and returns actually go out. See how to run payroll for one employee. Partner links if you want a payroll provider: Gusto or Paychex. You can also compare providers in our Gusto vs Paychex guide.
Agency rules and deadlines change. The official DOR, DWD, WCB, and IRS pages control. This checklist is not legal or tax advice.
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