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 by January 31 each year. If you previously registered to file withholding tax, you must still file Forms WH-1 and WH-3 for each period even if no tax is due or to report no employees for that time period. Late filed WH-1 returns are subject to a penalty of up to 20%, and a minimum penalty of $5. Late filed WH-3's are subject to a penalty of $10 per withholding document (W-2, 1099, K-1).
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?
If your withholding file size is 10MB or less you’ll manually enter or batch upload via INTIME. If your withholding file size is 10MB or over, you will batch load your W-2s using the bulk upload SFTP. For more information about both methods of submitting WH-3s, see the Bulk Upload Guide.
The bulk upload facility provides taxpayers submitting files with large numbers of transactions the ability to electronically submit these records to the Indiana Department of Revenue (DOR). Bulk upload is available for the following tax types: gasoline use tax, alcohol tax, motor vehicle rental, cigarette tax, other tobacco product tax and withholding.
There are now two options for a WH-3 bulk upload file submission:
- Submission of less than 10MB should be uploaded directly through INTIME (Indiana Tax Information Management Engine)
- Submission larger than 10MB must be uploaded via Bulk SFTP (Secure File Transfer Protocol). WH-1 and MVR-103 returns can be filed via bulk SFTP (Secure File Transfer Protocol) upload only. There is no size limitation to file with the SFTP.
Both XML and flat file formats are accepted:
- XML file formats are accepted for WH-3, WH-1, and MVR-103 tax returns.
- Flat file formats are accepted for wage statements.
Bulk upload files are created offline and then submitted to DOR for processing. The files are processed sequentially within a couple of hours. During high-volume processing, the delay can be longer. When the process is complete, an acknowledgment email is sent to the authorized representative with the results of the submission.
SFTP Bulk Upload guide and Frequently Asked Questions are now available:
Withholding Schemas for WH-1 & WH-3
DOR has XML schemas to service WH-1 and WH-3 filings.
Effective January 1, 2017, the following schema, IDORWTH2016V1.0, must be used for all filing years. If the SFTP Bulk Filing process is used, the WH-1 must be submitted in XML format.
- Withholding Schema: IDORWTH2016V1.0 (zipped file)
- Change Log
- WH-1 XML Business Rules
- WH-3 XML Business Rules
- W-2 Flat File Business Rules
- 1220 Flat File Business Rules
State Electronic Return Resources
Federal Electronic Return Resources
SFTP Registration and Error Reporting
Please fill out the registration form with your information to begin your registration process. You will receive a confirmation email from the Indiana Department of Revenue within 3 business days containing your login information.
If you receive a file error that requires assistance or if you need additional information, please complete and submit the reporting form below.