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overtaxed72
January 13, 2025
Question

Indiana State Tax Rate is Wrong Again this Year

  • January 13, 2025
  • 1 reply
  • 0 views

Good Afternoon Community,

 

Here we are in 2025 and the Indiana State Withholding percentage is wrong again.  The State enacted annual changes in 2023 so this should have been changed before the first payroll in 2025.  I have downloaded the updates and the documentation tells to look at something the state has provided on how to manually calculate taxes.  Why in the world am I paying for a payroll service if I have to manually calculate it?  On top of that, I cannot change the State %, it has to come in an update from Intuit.  So when is this going to be fixed?  I mean the State gave us an earth shattering tax break of .05%, I don't want my employees being overwithheld.  If I manually adjust the state withheld what will happen?  I know there are some things if you manually change then you are pretty much jacked going forward so I don't want to do that and have a bigger issue to address.  

 

Intuit Employees, please be sure to catch....I already installed the updates

    1 reply

    T
    TimotiSbr
    February 21, 2025

    Unfortunately, since Indiana's tax rate adjustments are annual, QuickBooks often lags in rolling them out at the right time. If the update hasn't corrected it yet, the best short-term option is to manually adjust the withholding for now.

     

    Just be aware that manually overriding tax calculations can sometimes cause discrepancies in future updates, especially if QuickBooks later auto-corrects the rate. If you do adjust it, make sure to keep a record in case you need to reconcile later. Also, I'd recommend reaching out to QuickBooks Payroll support directly, sometimes they can push a fix faster when enough users report the issue. Hopefully, they release an update soon.

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