Indiana DOR Issues Bulletin on Independent Contractors’ Responsibility for Income Tax Reporting, Withholding

The Indiana Department of Revenue (DOR) Nov. 1 issued a bulletin on independent contractors’ responsibility for income tax reporting and withholding, for individual income and corporate income tax purposes. The bulletin includes that if: 1) there is no federal withholding and the independent contractor is required to make federal estimated payments, then Indiana requires the independent contractor to make Indiana estimated payments if their annual Indiana state and local income tax liability exceeds $1,000; and 2) the independent contractor hires employees, he or she is required to withhold Indiana adjusted gross income tax and local income taxes from the employees’ ...