Contractors Doing Business in Indiana

A contractor is defined as any person engaged in converting construction material into real property on behalf of another person.

Independent contractors doing business in the State of Indiana are required to file a statement and documentation with the Indiana Department of Revenue (DOR) stating independent contractor status. There is a five dollar filing fee and the certificate is valid for one year. In addition, a certificate of exemption must be filed with the Worker’s Compensation Board. This has a filing fee of $15.

Independent contractors generally do not have income tax withheld by the parties that they contract with for services. Therefore, independent contractors are required to file quarterly estimate income tax payments with DOR. If the independent contractor hires employees, the independent contractor is an employer and is required to withhold Indiana adjusted gross income tax and local option income taxes from the employees’ wages and remit them to DOR.

Resident Contractors

You will need to withhold state and county taxes from your employees. Computing withholding taxes for employees will be required. You will also need to report employee income taxes withheld to DOR.

Non-Resident Contractors

Corporate Income Tax Rates
Withholding Requirements for Nonresident Employees
Taxes on Construction Materials

Additional Information

INBiz-- reigster for sales and witholding tax
Sales Tax
Withholding Tax