Form Wh-18 - Instructions For Completing Form Wh-18 printable pdf download

INSTRUCTIONS FOR COMPLETING FORM WH-18

Completing the Form

Submitting the Forms and Payments

Sections I and II

Form WH-18 has (4) copies lettered A, B, C, and D. Copy A is to be submitted by the withholding

In Sections I and II enter the information requested for the payer and the recipient. The payer is the

agent (payer) to the Compliance Division of the Indiana Department of Revenue attached to the

withholding agent and the recipient is the party from whom the payment is being withheld.

annual withholding reconciliation Form WH-3, no later than the end of February following the close

of the calendar year. Copy B and C are to be sent to the recipient. Copy B is for the recipient's

Section III

records. Copy C is to be used by the recipient to claim credit for the amount of tax withheld when

Enter the calendar year at the top right and the income information in the appropriate boxes. Note that the

submitting his income tax return. Copy D is to be retained by the withholding agent (payer) for his

net income is requested in all of the boxes except the box for nonresident corporate contractors, which

records.

requests the amount of gross income. Enter the date the withholding was made for the recipient.

Copies B and C of Form WH-18 are to be sent to the recipient after the withholding has been made

Box a: Enter the amount of Indiana income tax withheld from the recipient based upon the income

- but no later than January 31 following the close of the calendar year. As a convenience to a

entered in the boxes above. See the statement concerning tax rates.

recipient who is on a fiscal year basis the payer may issue two or more separate WH-18's during the

Box b: Enter the amount of county income tax withheld from the recipient. Corporations are not subject

year so that the credit for the amounts withheld can be claimed by the recipient when his fiscal year

to county income tax. See the statement concerning tax rates.

income tax return is filed.

Box c: Enter the name and county number of the Indiana county for which the tax was withheld in Box b.

The remittance of amounts withheld on Form WH-18 is to be included with your monthly or quar-

If no county tax is required to be withheld from the recipient, make no entry in Boxes b and c.

terly remittance accompanying Form WH-1. There are special provisions made on Form WH-1 to

accommodate the WH-18 withholding.

Tax Rates

The tax rate for individuals is currently 3.4%; therefore, the amount in Box a for individuals should be

Requirements for withholding can be found in the Indiana Code for shareholders of S corporations

3.4% of the amount shown as net income in either Box 1, 2, 3, or 5.

(I.C. 6-3-4-13), partners of partnerships (I.C. 6-3-4-12), beneficiaries of trust and estates (I.C. 6-3-

The tax rate for corporations is currently 1.2%; therefore, the amount in Box a for corporations should be

4-15), and nonresident corporate contractors (I.C. 6-2.1-6-1).

1.2% of the amount shown as gross income in Boxes 4 or 5.

For a list of the county income tax rates, request Departmental Notice #1 from the Department.