Struggling to keep up with payroll and HR in Indiana? From local ordinances to statewide labor laws, we’ll help you save time and focus on growing your business.
Payroll services in Indiana
How Paylocity helps Indiana employers
Payroll that gets it done
- Seamless automation: Eliminate repetitive tasks with automated workflows that boost accuracy and save time.
- Smart safeguards: Built-in audits and integrations flag issues before they become errors.
- Transparent calculations: Easily manage overtime, bonuses, and local tax changes, even across overlapping jurisdictions.
Your extra HR team member
- Automated workflows: Use ready-made templates for common tasks or build custom processes that fit your business.
- One employee record: A single source of truth for employee data keeps everything organized and compliant.
- Effortless Time & Labor: Schedule quickly, track clock-ins and meal breaks, and standardize time-off requests.
Compliance made simple
- Compliance dashboard: Get a clear view of requirements with updated forms and expert HR support.
- Built-in data access: Quickly find work authorizations, EEO/FLSA data, pay records, certifications, and industry updates.
- Always up-to-date forms: Access the latest state and federal forms right from the platform.
Challenges facing employers in Indiana
Indiana maintains a complex compliance landscape that requires a careful balance between federal standards and state mandates.
As an employer, you must grapple with:
- Stricter employment regulations ranging from pay equity to final paycheck mandates.
- State-based limitations on non-compete agreements and accommodation requirements for breastfeeding employees.
- Additional safety and health requirements under the Indiana State OSHA plan.
Indiana payroll fast facts
Minimum wage
$7.25
State income tax rate
2.95%
Right to work laws
Yes
State unemployment tax rate
- 2.50% (new employers)
- 0.50% - 7.40% (experienced employers)
Last updated: January 26, 2026
Indiana tax and compliance resources
FAQs about paying employees in Indiana
Does Indiana have a state income tax?
Yes, Indiana state income tax uses a flat rate of 2.95%, meaning it applies to all taxpayers regardless of their income levels.
Is Indiana a right to work state?
Yes, Indiana is a right to work state under Indiana Code 22-6-6.
What are the Indiana final pay laws?
In Indiana, employees who voluntarily resign or are involuntarily terminated from a job must receive their final paycheck by the next regular payday.
Are there Indiana work break laws?
No, Indiana currently has no laws regarding work breaks.
More than just payroll
Why employers in Indiana choose Paylocity
How Oliver Winery transformed HR operations
This Indiana winery saved 20+ hours a week and boosted employee engagement by 30% after streamlining its HR operations.
