WH-3/W-2 Withholding Tax Electronic Filing

Notice: If you have not yet filed your WH-3 for 2017 (due January 31, 2018), DOR is granting a one-time grace period until April 30, 2018.  If your required WH-3 is filed on or before April 30, 2018, DOR will waive the WH-3 filing penalties for tax year 2017. Any 2017 WH-3s filed after April 30, 2018, will be subject to statutorily allowed penalties of up to a $25,000. You can file through Indiana' s INtax system.

What’s a WH-3?

The WH-3 (Annual Withholding Reconciliation Form) is a reconciliation form for the amount of state and county income taxes withheld throughout the year. All employers must file the WH-3 no later than 31 days after the end of the calendar year.

Why Am I Required to File Electronically?

Any business who files more than 25 W-2, W-2G, or 1099-R statements must file them electronically (IC 6-3-4-16.5).

What Do I Do Next?

You will upload your files.

If your withholding file size is 2MB or less you’ll manually enter in to INtax. If your withholding file size is over 2MB, you will batch load your W-2s.

What If I Use a Payroll Provider? Can’t They Just File My WH-3 Return?

Yes, if the payroll provider you use is certified with the Indiana Department of Revenue, they can file your W-2s and WH-3 for you. Contact your service provider to find out if they have been certified with the Department.

If I Am a Software Developer...

Do I need to be certified with the Indiana Department of Revenue even if I just produce a substitute WH-3?

Yes. You will want to make sure that you are registered with the Department as software developer. You will then want to follow the forms approval process outlined in Departmental Notice 4.

If I Am Service Provider...

Do I need to be certified with the Indiana Department of Revenue even if I’ve purchased software from a developer?

If you are the one that is actually submitting the W-2 and WH-3 files on behalf of your clients through batch upload, you will need to be certified with the Indiana Department of Revenue. If you are, however, uploading or manually entering the W-2 and WH-3 files through INtax, you do not have to be certified with the Indiana Department of Revenue. You can find a list of certified software vendors online. For more information, visit this page.

Additional Resources