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Payroll Office Tax Form Entry Instructions

Pre-processing:  Please date stamp all tax forms on the day of receipt.

Table of Contents


Step 1: Verify the Validity of Tax Forms Received
Step 2: Verify Tax Data Status
Step 3: Correcting State/Local Tax Information – Update if you receive a WH-4 Indiana Tax Form
Step 4: Entering Federal Tax Information – Update if you receive a new W-4 form
Step 5: Entering State and Local Tax Information – Update if you receive a new WH-4 form
Step 6: Recording Dates Forms are Received – IU Fed Tax
Entry Instructions for Forms
Quickguide and Reminders

Step 1:Verify the Validity of Tax Forms Received
If any of the following information is missing and the form is determined to be invalid, the individual and/or the department should be contacted and the form should not be processed.

The following items will render the forms to be invalid:

1. W-4 (federal) and WH-4 (state)

  • Missing signature
  • Missing name
2. W-5 (federal earned income credit)
  • If line 1 answer is NO
  • If any of the 3 questions are not answered
  • Missing signature
  • Missing name
3. WH-5 (state earned income credit)
  • If line 1 answer is NO
  • If any of the 4 questions are not answered
  • Missing signature
  • Missing name
4. WH-47 (non-residency statement)
  • State listed as residence must be Michigan, Ohio, Kentucky, Wisconsin, or Pennsylvania
  • Missing signature
  • Missing name
  • Form is not notarized

Some forms are considered ‘valid’ but may have ‘incomplete’ data. You may still enter the form using the following procedures:

  • If the W-4 form does not indicate a martial status, the default value of ‘single’ will apply.
  • If the W-4 or WH-4 does not specify the number of allowances, the default value of ‘0’ will apply.

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Step 2: Verify Tax Data Status

In PeopleSoft go to Main Menu > Payroll for North America > Employee Pay Data USA > Tax Information > Update Employee Tax Data
  • Enter ID, click ‘include history’ and click the search button.
    *If employee record is returned with BOTH IU and IU2 companies, stop entry and review job data. If employee is now being paid in the IU2Company (18/20), tax forms should be sent to the retirement coordinator in the FMS tax area, Room 505, Poplars Bldg., IUB.

View Federal Tax Data:

  • Review the Effective dates to determine if this is an existing employee or new hire.

    • New hires will usually have one tax record that was created by the job data. The system will build an IN State row and the local row will be determined by the campus on the position (BL will build 105 (Monroe), IN will build 097 (Marion), etc.).

    • Existing employees will usually have multiple history rows and the effective date will not be 01/01/CY. Employees converted from the old HRIS payroll system will have a 01/01/1901 Last effective dated system row in their history.

  • Review the Federal Tax Data ‘This data was last updated by’ field. If the record indicates ‘IU DEP JCH’ or ‘IU DEF UNP’, NO tax data should be entered or modified today.

    • A nightly batch process will run and change the ‘last updated by’ field to ‘IU PRCSSED’ and change the ‘Effective Date’ to 01/01/CY or the new row will be deleted.

  • If the ‘last updated by’ field is ‘Online Opr’, ‘System’, or ‘IU PRCSSED’, you MAY update the record.

  • If the ‘last updated by’ field is ‘IU PRCSSED’ and the Effective Date is 01/01/CY, this new hire record was created from job data. You MAY update the record.

  • If you have both the W-4 (fed) and WH-4 (state) forms, proceed to Step 3.

  • If you only have the W-4 (fed tax form), proceed to Step 4.

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Step 3: Correcting State/Local Tax Information – Update if you receive a WH-4 Indiana Tax Form

  • Local tax in Indiana is determined by where the employee lived and worked on January 01 of the current tax year.

  • The system will always use the 01/01/CY row or the last effective date before 01/01/CY to do the calculation.

  • If the system doesn’t find a tax row ‘equal to’ or ‘prior to’ 01/01/CY, No local taxes will be withheld during this tax year.

If this is a new hire with only the 01/01/CY row, review the State Tax Data and Local Tax Data tabs and compare the state and local tax information to the WH-4 Indiana Tax form.

If you need to change any of the local information, you will need to be in “correction mode”.

State Tax Data tab:

  • The default State row will be IN and the Resident box will be checked. Review the WH-4 State tax form. If the employee has designated ‘N/A’, ‘out of state’, or left blank the information in the residence locality on the state tax form, you should UNCLICK the Resident box on the IN state tax row.
Local Tax Data tab:
  • You may have only two Locality rows in HRMS; principal residence and principal employment. The system always uses the residence locality first to determine the local tax rate. If the residence locality is taxable, the employment county will be ignored.

  • If the employee has listed Indiana counties of residence and employment on the tax form that are the same, you only need to enter 1 Locality row and it should be checked Resident.

    • If both counties are ‘N/A’ or ‘out of state’, change the default Resident locality row to ‘dummy’.('Dummy' is the last entry in the IN counties llist.)

  • If the employee has listed Indiana counties of residence and employment on the tax form that are different, you should enter the first Locality record as the residence and check the Resident box. Insert a second Locality row for the employment record and leave the Resident box blank.

    • If the employee has listed ‘N/A’, out-of-state, or left the residence locality blank on the tax form and listed an IN county in the employment locality, you need to enter the employment locality and the Resident box will remain unchecked.

    • If the employment county on the tax form is left blank, marked ‘N/A’, or ‘out of state’, you do not need to insert a ‘dummy’ non-resident record.

  • If the localities for residence and employment are left blank on the form, we should not assume they were a resident of IN on January 1 of the current year. The system will build a default local tax row based on the campus (in BL = 105). Leave the default Locality row but DO NOT mark it as Resident. The system will withhold the non-resident rate of local tax.

  • If the employee has specified additional local withholding on Line 8, this amount must be entered on the 01/01/CY row.

  • SAVE the record and move out of “correction mode” back to “include history”

If this is an existing employee with multiple history rows, you need to compare the resident and employment localities the employee has listed on the newly received WH-4 Indiana Tax form to the existing Local Tax Data tab to determine if you need to correct the record.

The payroll tax calculation process uses the Local Tax information on the employee tax record that has an Effective Date PRIOR TO or EQUAL TO January 1 of the current tax year to determine local tax withholding.

Compare the residence and employment localities the employee has listed on the new form to the existing tax record.

  • If the residence and employment localities were left blank on the new form, you can assume the employee does not want to change the existing Local Tax information and skip to Step 4.

  • If the residence or employment localities are different on the new tax form, you need to determine which local row to correct.

    • If the employee only has effective dated rows BEFORE January 1 of the current tax year, you will need to return to Fed Tax Data to insert a new effective dated row. The new row will default in with today’s date. Change the Effective Date to 01/01/CY, correct the residence and employment local information on the Local Tax Data tab using the instructions below and SAVE the record.

    • If the employee has effective dated rows BEFORE and AFTER January 1 of the current tax year, you will need to return to Fed Tax Data and change to “correction mode.” Using the arrow on the Effective Date row, click to the effective dated row directly BEFORE 01/01/CY, insert a new effective dated row, change the date to 01/01/CY, tab to Local Tax Data, enter the residence and employment local information using the instructions below and SAVE the record.

Entry Instructions:

State Tax Data tab:

  • If the employee has designated ‘N/A’ or ‘out of state’ information in the residence locality on the state tax form, you should UNCLICK the Resident box on the IN state tax row.

Local Tax Data tab:

  • You may have only two Locality rows in HRMS; principal residence and principal employment. The system always uses the residence locality first to determine the local tax rate. If the residence locality is taxable, the employment county will be ignored.

  • If the employee has listed counties for residence and employment on the tax form that are the same, you only need to enter 1 Locality row and it should be checked Resident.

    • If both counties are ‘N/A’ or ‘out of state’, you will enter a ‘dummy’ Resident locality row.

  • If the employee has listed counties for residence and employment on the tax form that are different, you should enter the first Locality record as the residence and check the Resident box. Insert a second Locality row for the employment record and leave the Resident box blank.

    • If the employee has listed ‘N/A’ or ‘out-of-state’ in the residence locality on the tax form and listed an IN county in the employment locality, you need to enter the employment locality and the Resident box will remain unchecked.

    • If the employment county on the tax form is marked ‘N/A’ or ‘out of state’ you do not need to insert a ‘dummy’ non-resident record.

  • If the employee has specified an additional local withholding amount on line 8, the amount must be entered on the 01/01/CY row.
After you finish correcting the local tax information, be sure to change out of “correction mode”!
Go back to Update/Display at the bottom of the tax screen.

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Step 4: Entering Federal Tax Information – Update if you receive a new W-4 form

Federal Tax Data:

Review tax setup:
  • If employee is already setup as a Non-Resident Alien in the Special Withholding Tax Status section, stop entry and take tax forms to international tax coordinator for review.
  • If the ‘letter received’ box is checked in the Lock-In details section, stop entry and take tax forms to tax manager for review.
Insert a new row, effective date will default to today’s date and should not be changed.
Review each section and make changes according to the new W-4 received. If you received new federal and state forms, complete all tabs before SAVING the record.


Special Tax Withholding Status:
  • None: This is the default value and applies to the majority of employees
  • Do Not Maintain Taxable Gross and Do Not Withhold Tax: May only be selected by the tax area under very limited conditions.
  • Maintain Taxable Gross: This is the box you will select if the employee has written “EXEMPT” in box 7 of form W-4. See ‘Claiming Exempt Status’ instructions below.
  • Non-Resident Alien; Tax Treaty/NR Data: This box will be selected if W-4 contains the letters “NRA” on line 6.
W-4 Processing Status:
  • None: Default value is either blank or none.
  • Notification Sent: Updated by the system batch process at year end by tax area.
  • New W4 received: Select this box if employee is claiming “EXEMPT” in box 7 of W-4. See ‘Claiming Exempt Status’ instructions below.
Federal Withholding Status:
  • Tax Marital Status: Enter information from tax form. If status is blank, enter “SINGLE”.
  • Withholding Allowances: Enter number of allowances indicated on LINE 5 of W-4. If blank, enter “0”.
Flagged for IRS:
  • Do not click this box.
FWT Additional Amount:
  • Amount: Enter amount indicated on LINE 6 of W-4. If no amount is on LINE 6, verify that additional amount is empty or displays zero dollars. *Be sure to remove amounts that were listed previously if new form is blank!
  • Percentage: We do not use the percentage box. If employee indicates a percent, employee and/or department should be notified to request new form.
Lock-In Details:
  • If this box is checked, contact FMS tax area for assistance.
Earned Income Credit/W-5 Processing Status:
  • No entry required unless employee completes W-5 (Earned Income Credit). See ‘Claiming Earned Income Credit’ instructions below.
Tax Treaty/NR Data:
  • No entry required unless employee completes International Tax treaty forms. See ‘Tax Treaty/Non-Resident’ instructions below.

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Step 5: Entering State and Local Tax Information – Update if you receive a new WH-4 form

You should have already reviewed and corrected the 1/1/CY State and Local tax rows in Step 3 above to determine local withholding. These instructions apply to the newly inserted current effective dated row.

State Tax Data: form WH-4 (state form)

State Information:
  • State:
    • Default value is IN. Should not be deleted in any condition except by the tax area.
    • Some MT (Montana) tax rows will exist and are managed by the tax area.
    • Other states that we have a reciprocal agreement with (KY, PA, OH, WI, and MI) are ONLY ENTERED if the employee completes a valid WH-47 form. See instructions in WH-47 Section below. If employee later moves to IN and completes new Indiana tax forms, you would need to delete other state information when correcting the tax data.

  • Resident: Default value is checked. If employee has indicated ‘n/a’ or ‘out of state’ information in the residence locality on their state tax form, you should unclick the Resident box.
  • Non-Residency Statement Filed: Default value is blank. Check box on IN row when individual has submitted a valid WH-47. See instructions in WH-47 Section below.
  • UI Jurisdiction: Should be checked on IN row.
  • Exempt From SUT: Default is checked. Do not change.
  • SDI Status: Default is Exempt or Not Applicable. Do not change.

Special Tax Status:
  • None: default value that applies to the majority of employees.
  • Do Not Maintain Taxable Gross and Do Not Withhold Tax: Should not be selected except by the tax area under limited conditions if the employee lives and works in another state and has provided documentation.
  • Maintain Taxable Gross; SWT zero unless specified in ‘Additional Withholding’ below: Do not select – never appropriate for employees.
  • Non-Resident Alien; Fed rules: Do not select. This is only selected by the tax area in certain conditions.

State Withholding Elements:
  • SWT Marital/Tax Status: Default value is N (not applicable). Do not change.
  • Withholding Allowances: Enter number of allowances indicated on LINE 5 of WH-4. If nothing is specified, enter “0”.
  • Additional Amount: Enter the amount indicated on LINE 7 of WH-4. If no amount listed, confirm that field is blank or displays “0” dollars.
  • Additional Percentage: Do not enter in this field. If employee has indicated a percentage, they should be contacted for a new form.
  • Additional Allowances: Enter number of allowances indicated on LINE 6 of WH-4. If nothing is specified, verify that field is blank or displays “0” dollars.
  • IN Earned Income Credit: Only displays on IN tax rows. Default value is blank.
    • Check box on IN row when employee has submitted a valid WH-5 certifying eligibility for the IN Advanced Earned Income Credit. See WH-5 instructions below.
  • PR Retirement Plan: Default is blank. Do not change.
Lock-In Details:
  • Does not apply at state level. Default is blank. Do not change.

Local Tax Data:

States:
  • Should reflect IN unless employee has filed special state tax documents.
Locality:
  • Enter locality based on WH-4 using the search-lookup function. You may only have two localities; principal residence and principal employment.

  • If the residence and employment localities were left blank on the new form, you can assume the employee does not want to change the existing Local Tax information and skip to Step 6.

  • You may have only two Locality rows in HRMS; principal residence and principal employment. The system always uses the residence locality first to determine the local tax rate. If the residence locality is taxable, the employment county will be ignored.

  • If the employee has listed counties for residence and employment on the tax form that are the same, you only need to enter 1 Locality row and it should be checked Resident.
    • If both counties are ‘N/A’ or ‘out of state,' you will enter a ‘dummy’ Resident locality row.

  • If the employee has listed counties for residence and employment on the tax form that are different, you should enter the first Locality record as the residence and check the Resident box. Insert a second Locality row for the employment record and leave the Resident box blank.

    • If the employee has listed ‘N/A’ or ‘out-of-state’ as the residence locality on the tax form and listed an IN county in the employment locality, you need to enter the employment locality and the Resident box will remain unchecked.
    • If the employment county on the tax form is marked ‘N/A’ or ‘out of state’ you do not need to insert a ‘dummy’ non-resident record.

  • Resident:
    • Enter based on WH-4 indicating principal residence and employment localities.
    • Check the resident box on the locality row that represents the IN locality on the WH-4 for principal place of residence as of January 1 of the current tax year.
    • Uncheck the resident box on the locality row that represents the IN locality on the WH-4 for principal place of employment as of January 1 of the current tax year.

  • Other Work Locality: Does not apply to IU. Do not enter in this field.
Special Tax Status:
  • None: Default value. Do not change.
  • Do not Maintain Taxable Gross and Do Not Withhold Tax: Only selected by the tax area in limited conditions.
  • Maintain Taxable Gross, LWT zero unless specified in ‘Additional Withholding’ below: Only selected by the tax area in limited conditions.

Local Withholding Status:
  • LWT Marital/Tax Status: Default is N (non applicable). Do not change.
  • Local Withholding Allowances: Enter the number of allowances indicated on LINE 5 of WH-4. Allowances should match the State Tax Data record.

Local Additional Amount:
  • Additional Withholding Amount: Enter the amount indicated on LINE 8 of WH-4. If no amount listed, confirm that field is blank or displays “0” dollars. Additional local withholding must also be entered on the 1/1/CY tax row before the system will withhold.
  • Percentage: Does not apply. Do not enter. Verify field is blank.

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Step 6: Recording Dates Forms are Received – IU Fed Tax

The IU Fed Tax tab is a customized screen to record the dates when new forms are received. Update the dates even if no changes were indicated by the employee.
  • Private Practice: IUPUI only. Not currently used.
  • W-4 Received Date: Enter the date the form was received in your office.
  • WH-4 Received Date: Enter date received.
  • WH-47 Received Date: Enter date received, if applicable
  • W-5 Received Date: Enter date received, if applicable
  • WH-5 Received Date: Enter date received, if applicable
  • 673 Expiration Date: Updated by tax area only.
  • W-8BEN Country: Updated by tax area only.
  • W-8BEN Expiration Date: Updated by tax area only.
  • FICA Exemption Stop Date: Updated by tax area only.
  • Two month FICA exemption: Field not used at this time.
Post-Processing:
  • Please date and initial the forms as they are entered.
  • Verify the Employee Home Address on the Personal Data Screen. If different, insert a new effective dated row and enter the correct address.Workforce Administration>Personal Information>Modify a Person.
  • Verify the SSN on the form matches the SSN in Personal Information.

Entry Instructions for Forms

Entry Instructions for Form W-4: Claiming Exempt Status
The following instructions should be used if you receive a W-4 form with the word “exempt” written in Line 7. Exemption status must be renewed each tax year. Records will be reset to S-0 withholding on or around February 15th each year. Enter the form exactly as the employee has indicated on each line except Additional Amount (see below).

Federal Tax Data:

Effective Date section:

  • Exempt from FUT: Box should be checked for all employees. Do not change.
  • Use Total Wage for Multi-State: Box should be unchecked for all employees. Do not change.
  • Always create W2 for NQDC Rptg: Box should be unchecked for all employees. Do not change.
Special Tax Withholding Status section:
  • Select Maintain Taxable Gross
  • W-4 Processing Status: Check the New W-4 Received box.
Federal Withholding Status section:
  • Tax Marital Status: Enter marital status from tax form. If status is blank, enter “single”.
  • Withholding Allowances: Enter number of allowances indicated on Line 5 of W-4.
Flagged for IRS section:
  • W4 Flagged for Transmission box should remain unchecked.
FWT Additional Amount section:
  • Amount should NOT be entered. Employee is not allowed to determine specific amount of withholding while claiming exempt. Verify that field is blank. System will issue you a warning if you enter an amount.
  • Percentage: We do not use the percentage box. Field should remain blank.
Lock-In Details section:
  • Letter Received: If this box is checked, contact FMS tax area for assistance.
  • Limit On Allowances: Field should have 0 unless Letter Received box is checked.
The remaining sections on Federal Tax Data should be reviewed.
  • If any information exists in Earned Income Credit, it should be removed.
  • If any information exists in Tax Treaty/NR Data, you should contact the International Tax Entry specialist for assistance.

SPECIAL NOTICE FOR DECEMBER:

When forms are received at the end of the calendar year (December) claiming “exempt”, an assumption is made that the form is intended to be for the following or new tax year.
  • Insert a new Effective Dated row changing the status to “exempt” for the current year using the instructions above.
  • Enter a second tax row with an Effective Date of 01/01/Next Year to continue the exemption using the instructions above. If you don’t enter a new 01/01/NY tax row, the ‘exempt’ status will be reset in February.

Entry Instructions for Tax Treaty/NR Data: Update for Non-resident Alien with or without IRS Form W-8BEN, 8233 or W-9.

To be completed if W-4 contains the letters “NRA” on LINE 6 or if Identification Data indicates a visa type of anything other than ‘I-9’.

Only enter the first 4 fields designated below.

Tax Treaty/NR Data:
  • Date of Entry: Enter today’s current date.
  • Country: Navigate to Main Menu>Personal Information>Identification>Citizenship>Citizenship and Passport. Locate the non-USA Country listed with a status of “Native”.
  • Treaty ID: Select from search-lookup screen. Generally begins with “TIAS”.
  • Treaty Expiration Date: This field will be auto-filled. Override the date with today’s current date.
  • Form 8233 Rec’d:
  • 8233 In Effect Date:
  • 8233 Exp Date:
  • Form W8 Rec’d:
  • W8 In Effect Date:
  • W8 Exp Date:
  • Form W9 Rec’d:
  • W9 In Effect Date:
  • Taxpayer ID Number: Do not change. This is for ITIN, not SSN.
  • NRA Withholding Rule:

Allowable Earnings Codes:
  • Income Code (for 1042-S):
  • Max Earnings Eligible Per Year:
  • Tax Rate (after form):
  • Tax Rate (before form):

SPECIAL NOTE: If the employee submits a WH-4 State Tax form, the allowances MAY NOT exceed the federal allowances. They MAY NOT claim additional allowances on line 6.

Entry Instructions for WH-47 (Non-Residency Statement)

State listed as residence must be Michigan, Ohio, Kentucky, Wisconsin or Pennsylvania. No other states are valid and should not be entered.

State Information: Default value is IN. You will be adding an additional state row for the residence state listed above.

Entry instructions for the IN row: Enter based on Indiana WH-4 tax form

State Tax Data tab:

State Information:
    State:
IN
  • Resident: Uncheck the box
  • Non-Residency Statement: Check the box
  • UI Jurisdiction: Check the box
  • Exempt From SUT: do not change
  • SDI Status: do not change

Special Tax Status:
  • Select None
State Withholding Elements:
  • SWT Marital/Tax Status: Leave default value N
  • Withholding Allowances: enter specified allowances on line 5
  • Additional Amount: must be zero
  • Additional Percentage: must be blank
  • Additional Allowances: enter specified allowances on line 6
  • IN Earned Income Credit: must be zero
  • PR Retirement Plan: should be blank
Lock-In Details:
  • Letter Received: If box is checked, contact FMS tax area for assistance.
Local Tax Data tab:

States:
    State:
IN

Locality:
  • Enter the employment locality based on the WH-4. If blank or ‘N/A’, enter ‘dummy’ row.
  • Resident: box should not be checked on the employment locality row.
  • Other Work Locality:box should be blank
Special Tax Status:
  • Select None
Local Withholding Status:
  • LWT Marital/Tax Status: N
  • Local Withholding Allowances: should match state allowances on line 5
Local Additional Amount:
  • Additional Withholding Amount: enter amount specified on line 8. Additional local withholding must also be entered on the 1/1/CY row.
  • Percentage: do not enter

Entry instructions for the KY, PA, OH, WI, or MI rows:

State Tax Data tab:

State Information: State: KY,PA,OH,WI or MI

  • Resident: Check box certifying this is the reciprocal state of residence.
  • Non-Residency Statement Filed: box should NOT be checked
  • UI Jurisdiction: box should NOT be checked
  • Exempt From SUT: do not change
  • SDI Status: do not change

Special Tax Status:
  • Select Do Not Maintain Taxable Gross and Do Not Withhold Tax

State Withholding Elements:
  • SWT Marital/Tax Status: Should be N (except WI: use marital status from W-4).
  • Withholding Allowances: Enter 0
  • Additional Amount: should be blank
  • Additional Percentage: should be blank
  • Additional Allowances: should be blank
  • IN Earned Income Credit: should be blank
  • PR Retirement Plant: should be blank
Lock-In Details:
  • Letter Received: box should be blank
Local Tax Data tab:

States:
    State: KY, PA, OH, WI or MI

Locality:
  • Enter the locality of ‘dummy’ for these states.
  • Resident: box should be checked
  • Other Work Locality: box should be blank
Special Tax Status:
  • Select Do Not Maintain Taxable Gross and Do Not Withhold Tax
Local Withholding Status:
  • LWT Marital/Tax Status: leave default of N (except WI)
  • Local Withholding Allowances: Enter 0
Local Withholding Amount:
  • Additional Withholding Amount: should be blank
  • Percentage: should be blank
Special Note: If an employee currently claiming the non-residence statement later moves to Indiana and files new Indiana tax forms, you will need to correct the State/Local tax information and remove the other state row from their record. You would also need to verify the 1/1/CY row and make appropriate corrections to local tax information (see Step 3).

Entry Instructions for Federal Form W-5: Claiming Earned Income Credit
After you insert a new effective dated row on Fed Tax Data, enter according to the W-5 form received.

Federal Tax Data:

Earned Income Credit section:
  • Not Applicable:
    • Default value for employees without W-5
    • Selected if LINE 1 on W-5 indicates “NO”

  • Single, or Head of Household:
    • Select if LINE 1 on W-5 indicates “YES” and LINE 2 indicates “Single, head of household or qualifying widow(er)”

  • Married but without spouse filing:
    • Select if LINE 1 on W-5 indicates “YES” and LINE 2 indicates “Married Filing Jointly” and LINE 3 indicates “NO”.

  • Married, both spouses filing:
    • Select if LINE 1 on W-5 indicates “YES” and LINE 2 indicates “Married Filing Jointly” and LINE 3 indicates “YES”.

W-5 Processing Status section:
  • None: Default is either blank or None.
  • Notification Sent: Updated by tax area during year end process.
  • New W-5 Received: Select if employee has provided a valid W-5 form.

Entry Instructions for State Form WH-5: Claiming Earned Income Credit

All fields are entered per previous instructions. The only difference is on the State Tax Data tab.

IN Earned Income Credit: Default value is blank.
  • IN: Check box on IN row when employee has submitted a valid WH-5 certifying eligibility for the IN Advanced Earned Income Credit.
SPECIAL DECEMBER NOTICE: Employees claiming “Advanced Earned Income Credit” must file new W-5 tax forms each year since the form expires on 12/31 each year. When a new W-5 claiming “Advanced Earned Income Credit” is received during December, an assumption is made that the form is intended to be for the following tax year. You should insert a new effective dated row to enter the EIC information for the current year. You should enter a second tax row with an effective date of 01/01/Next Year with the EIC information.

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Quickguide and Reminders:

  • Do not update tax data if the “last updated by” indicates IU DEF UNP or IU DEP JCH. Wait until the status changes to IU PRCSSED on the next business day.

  • DO NOT USE CORRECT HISTORY on any row other than 01/01/CY when correcting the local tax information. If a 01/01/CY row doesn’t exist, you should create one.

  • Only modify the locality and additional local withholding information on the 01/01 row. All other changes should be on the current effective dated row.

  • December – W-4 claiming exempt and W-5 for EIC should be considered new forms for the next tax year. Be sure to update the current record and enter a 01/01/NY record.

  • Enter the dates you receive the forms on the IU Fed Tax Ext tab. This information will help us decide how to settle disputes from employees requesting refunds, etc.

  • Only enter a state other than IN when you receive a WH-47 from someone who lives in KY, MI, OH, WI, or PA. There are MT (Montana) records in the system that are managed by the tax area.

  • Verify that you enter the same number of exemptions on the State Tax and Local Tax tabs from the WH-4 form.

  • Refunds are not given to employees that did not file new forms prior to payroll deadlines. Refunds are not given to employees if new forms don’t result in the expected results. Tax refunds will be processed for central office entry errors or system calculation errors.

  • Additional tax amounts are withheld on EVERY payment an employee receives. If they have monthly and hourly jobs, it will be taken on both payments. Also when payments are processed in an off-cycle payroll, the additional tax will be withheld.

  • If you receive tax forms for employees in the IU2 company, they should be forwarded to the retirement coordinator in the tax area.

  • If an employee is going to live and work in another state and is requesting state tax exemption, the department must send documentation to the tax area making the request.

  • If the marital status is left blank on the W-4 form you receive, you must change the record to single.

  • If you receive valid tax forms that are “incomplete” (marital status, conflicting exemption info, blank local info, etc.) you can contact the employee and/or department to request a new form. Enter the information available per our instructions and file the form as usual. It is the responsibility of the employee to verify their tax withholding information. We are not returning forms in the mail since they contain the SSN.

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Block IU Last Updated 5/18/2010
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