Indiana State Tax Changes with Adopted Child Dependent

Starting October 1st, 2022, Indiana state tax is implementing an additional field where an employee can claim an adopted child dependent and get 3,000.00 a year per adopted child versus the 1,500.00 per dependent amount. How do I update the Tax Table to reflect this?

• Payroll

• Employee Deductions

• Deduction and Benefit Master

• Tax Tables

Since the current amount for a dependent is 1,500, the Exemption field in Employee Deductions can be updated to reflect the additional 1,500.00 amount. (from 1 to 2)

1. Go to Employee Deductions (Payroll>Employee Maintenance>Employee Deductions)

2. Search for the employee and state tax deduction code. 

3. Click Update. 

4. Update the Exemptions field. Click Accept. 

   1. Example, if the employee is claiming one adopted child dependent, the Exemptions field would be updated from 1 to 2. 

      1. So instead of calculating 1,500.00 it would calculate 3,00.00 (1,500 + 1,500 = 3,000)