republic-os/legislation/us/states/in/2021/sb-234.md

---
type: "Bill"
title: "Withholding tax remittance."
description: "Requires the department of state revenue (department) to provide written notice, by electronic means, to each employer that is registered in the department's online INTIME program and whose employer's Form WH-1 monthly withholding tax report or withholding tax remittance is past due. Requires each payroll service provider to annually register with the department beginning January 1, 2022. Specifies the contents of the annual registration form. Defines \"payroll service provider\" and \"responsible person\" for purposes of these provisions. Provides that the department may charge an annual payroll service provider registration fee for purposes of the registration program. Provides that a provider shall be permitted to retain any income generated on business client (client) funds while held in a provider's legal possession pending remittance to authorized payees if the client agreement expressly permits it and the provider complies with certain rules. Provides that a payroll service provider contract must include a provision that specifies that if the payroll service provider fails to deposit or remit a business client's employer withholding taxes when due, and the failure is caused by an error or omission of the payroll service provider and not by the business client, the payroll service provider shall be required to reimburse the business client for the business client's payment of any penalties or interest assessed by the department as a result of the failure. Provides that, if a provider knowingly or intentionally fails to remit taxes withheld, the provider is liable and responsible persons shall be personally liable for such taxes that were withheld and not remitted, along with penalties and interest. Provides that a responsible person of the provider who knowingly or intentionally fails to remit taxes that were withheld commits a Class A misdemeanor, and increases the penalty depending on the amount of taxes that were not remitted. Provides that the liability shall not be construed to relieve the liability of the employer or any person otherwise with a duty to withhold. Provides that the employer's address shall be the address of record with the department for withholding tax purposes and that a payroll service provider may not change the address of record with the department."
jurisdiction: "us/states/in"
legislature: "Indiana General Assembly"
session: "2021"
identifier: "SB 234"
citation: "Indiana SB 234 (2021)"
classification: ["bill"]
subjects: ["REVENUE", "DEPARTMENT OF", "TAXES generally", "TRADE REGULATIONS"]
status: "enacted"
primary_sponsors: ["Brian Buchanan", "Doug Miller", "Linda Rogers", "Travis Holdman"]
version_count: 5
action_count: 39
vote_count: 1
first_action: "2021-01-07"
last_action: "2021-04-22"
source: "openstates"
source_identifier: "ocd-bill/6ffa2078-dc3f-4719-8519-449938a3b5fa"
source_url: "http://iga.in.gov/legislative/2021/bills/senate/234"
source_hash: "086e06dceca1dfbb32b2f51af9755ae56f0649fa8d4aa4b837fcf87087fdca2c"
vintage: "2026-07-01"
source_snapshot: "https://data.openstates.org/daily/2026-07-01/public.pgdump"
retrieved_at: "2026-07-06"
confidence: "reported"
tags: ["legislation", "bill", "us-in"]
---

# Indiana SB 234 (2021) — Withholding tax remittance.

Requires the department of state revenue (department) to provide written notice, by electronic means, to each employer that is registered in the department's online INTIME program and whose employer's Form WH-1 monthly withholding tax report or withholding tax remittance is past due. Requires each payroll service provider to annually register with the department beginning January 1, 2022. Specifies the contents of the annual registration form. Defines "payroll service provider" and "responsible person" for purposes of these provisions. Provides that the department may charge an annual payroll service provider registration fee for purposes of the registration program. Provides that a provider shall be permitted to retain any income generated on business client (client) funds while held in a provider's legal possession pending remittance to authorized payees if the client agreement expressly permits it and the provider complies with certain rules. Provides that a payroll service provider contract must include a provision that specifies that if the payroll service provider fails to deposit or remit a business client's employer withholding taxes when due, and the failure is caused by an error or omission of the payroll service provider and not by the business client, the payroll service provider shall be required to reimburse the business client for the business client's payment of any penalties or interest assessed by the department as a result of the failure. Provides that, if a provider knowingly or intentionally fails to remit taxes withheld, the provider is liable and responsible persons shall be personally liable for such taxes that were withheld and not remitted, along with penalties and interest. Provides that a responsible person of the provider who knowingly or intentionally fails to remit taxes that were withheld commits a Class A misdemeanor, and increases the penalty depending on the amount of taxes that were not remitted. Provides that the liability shall not be construed to relieve the liability of the employer or any person otherwise with a duty to withhold. Provides that the employer's address shall be the address of record with the department for withholding tax purposes and that a payroll service provider may not change the address of record with the department.

## Version chain

The bill's text revisions, in order — the diff chain from filing to enrollment.

1. **Enrolled Senate Bill (S)** (committee substitute) — [source](http://in-proxy.openstates.org/2021/bills/SB0234/versions/SB0234.05.ENRH)
2. **Introduced Senate Bill (S)** (committee substitute) — [source](http://in-proxy.openstates.org/2021/bills/SB0234/versions/SB0234.01.INTR)
3. **Senate Bill (H)** (committee substitute) — [source](http://in-proxy.openstates.org/2021/bills/SB0234/versions/SB0234.04.COMH)
4. **Senate Bill (H)** (committee substitute) — [source](http://in-proxy.openstates.org/2021/bills/SB0234/versions/SB0234.03.COMH)
5. **Senate Bill (S)** (committee substitute) — [source](http://in-proxy.openstates.org/2021/bills/SB0234/versions/SB0234.02.COMS)

## Votes

- SB 234 - Miller - 3rd Reading — **89–3** (pass) · lower

## Sponsors

- Brian Buchanan — primary (person)
- Doug Miller — primary (person)
- Linda Rogers — primary (person)
- Travis Holdman — primary (person)
- Andy Zay — coauthor (person)
- Blake Doriot — coauthor (person)
- Chip Perfect — coauthor (person)
- Chris Garten — coauthor (person)
- David Niezgodski — coauthor (person)
- Dennis Kruse — coauthor (person)
- Ed Charbonneau — coauthor (person)
- Eric Bassler — coauthor (person)
- Eric Koch — coauthor (person)
- Erin Houchin — coauthor (person)
- Fady Qaddoura — coauthor (person)
- Greg Walker — coauthor (person)
- J.D. Ford — coauthor (person)
- Jack Sandlin — coauthor (person)
- James Buck — coauthor (person)
- James Tomes — coauthor (person)
- Jeff Raatz — coauthor (person)
- Jeffrey Thompson — cosponsor (person)
- Jon Ford — coauthor (person)
- Justin Busch — coauthor (person)
- Kyle Walker — coauthor (person)
- Mark Messmer — coauthor (person)
- Matt Lehman — cosponsor (person)
- Mike Bohacek — coauthor (person)
- Philip Boots — coauthor (person)
- Rick Niemeyer — coauthor (person)
- Robert Cherry — cosponsor (person)
- Ron Alting — coauthor (person)
- Ronald Grooms — coauthor (person)
- Ryan Mishler — coauthor (person)
- Scott Baldwin — coauthor (person)
- Stacey Donato — coauthor (person)

## Timeline

The legislative action history — every referral, reading, and vote.

- **2021-01-07** Authored by Senator Rogers
- **2021-01-07** First reading: referred to Committee on Tax and Fiscal Policy `reading-1, referral-committee`
- **2021-01-14** Senator Holdman added as second author
- **2021-01-14** Senator Buchanan added as third author
- **2021-01-14** Senators Doriot, Garten, Perfect added as coauthors
- **2021-01-25** Senators Raatz and Niezgodski added as coauthors
- **2021-01-26** Senator Buck added as coauthor
- **2021-01-28** Senators Kruse and Niemeyer added as coauthors
- **2021-01-28** Senators Messmer, Walker G, Mishler, Busch, Charbonneau, Bassler, Qaddoura, Bohacek added as coauthors
- **2021-02-09** Committee report: amend do pass, adopted `committee-passage`
- **2021-02-11** Second reading: ordered engrossed `reading-2`
- **2021-02-15** Senator Ford J.D. added as coauthor
- **2021-02-15** Senator Alting added as coauthor
- **2021-02-15** Senators Koch, Boots, Grooms added as coauthors
- **2021-02-15** Senator Sandlin added as coauthor
- **2021-02-15** Senator Tomes added as coauthor
- **2021-02-15** Senator Zay added as coauthor
- **2021-02-16** House sponsor: Representative Miller D
- **2021-02-16** Cosponsors: Representatives Lehman, Cherry, Thompson
- **2021-02-16** Senators Donato and Baldwin added as coauthors
- **2021-02-16** Senator Ford Jon added as coauthor
- **2021-02-16** Senator Houchin added as coauthor
- **2021-02-16** Senator Walker K added as coauthor
- **2021-02-16** Third reading: passed; Roll Call 130: yeas 46, nays 0 `passage, reading-3`
- **2021-02-17** Referred to the House
- **2021-03-02** First reading: referred to Committee on Ways and Means `reading-1, referral-committee`
- **2021-03-18** Committee report: amend do pass, adopted `committee-passage`
- **2021-03-18** Referred to the Courts and Criminal Code pursuant to House Rule 127
- **2021-03-25** Committee report: amend do pass, adopted `committee-passage`
- **2021-03-29** Second reading: ordered engrossed `reading-2`
- **2021-03-30** Third reading: passed; Roll Call 330: yeas 89, nays 3 `passage, reading-3`
- **2021-03-31** Returned to the Senate with amendments `amendment-failure`
- **2021-04-06** Motion to concur filed
- **2021-04-08** Senate concurred in House amendments; Roll Call 373: yeas 47, nays 0 `amendment-failure`
- **2021-04-12** Signed by the President Pro Tempore
- **2021-04-13** Signed by the Speaker
- **2021-04-21** Signed by the President of the Senate
- **2021-04-22** Signed by the Governor `executive-signature`
- **2021-04-22** Public Law 97

## Source

OpenStates / OpenCivicData bulk snapshot [2026-07-01](https://data.openstates.org/daily/2026-07-01/public.pgdump); origin `ocd-bill/6ffa2078-dc3f-4719-8519-449938a3b5fa`. Confidence: reported (aggregated from official Indiana legislature records).