This page provides essential information regarding key state-specific labor laws, employee rights, and compliance requirements. Our goal is to ensure you have easy access to the necessary documents and information to understand your rights and obligations while working remotely in Indiana.

Tax Withholdings

  • Federal Income Tax: Complete Form W-4 (IRS) Employee's Withholding Allowance Certificate to figure the correct amount of federal income tax to have withheld from your paycheck.
  • State Income Tax: Because Indiana and Pennsylvania share a reciprocal tax agreement, remote employees living in Indiana but working for a PA-based employer are exempt from Pennsylvania state income tax. You must complete two specific state forms to ensure your taxes are handled correctly:

    • Form REV-419 (Pennsylvania Department of Revenue): Employee’s Nonwithholding Application Certificate. You must check Box B to certify your Indiana residency. This instructs the payroll department not to withhold Pennsylvania state income tax.

    • Form WH-4 (Indiana Department of Revenue): Employee's Withholding Exemption and County Status Certificate. This form sets your Indiana state tax exemptions and determines your local county tax rate based on your Indiana home address.

Important Note regarding Local Taxes: While reciprocity exempts you from Pennsylvania state tax, Indiana collects local county income taxes based on where you reside as of January 1st of the tax year. Form WH-4 ensures these local county taxes are calculated and withheld accurately.

Please submit completed forms to the Payroll Office via the secure Payroll Office FileSender.

Workplace Rights & Posters 

This information is a summary and is subject to change. For complete details and the most current regulations, please refer to the official Indiana Department of Labor (IDOL) website and consult with Lehigh University's HR and Payroll departments for specific guidance.

Workers' Compensation

Worker's Compensation coverage extends to remote employees who suffer a work-related injury or illness while performing their job duties. For an injury to be covered, it must arise out of and in the course of employment. Workers' compensation claims must be reported to the Risk Management Office at 610-758-3899 within one business day of the accident.

How to Claim Unemployment Insurance Benefits

If you become unemployed through no fault of your own and meet eligibility requirements, you may be able to claim Unemployment Insurance Benefits through the official Indiana Department of Workforce Development (DWD) website.

 

Important Note: This information is a summary and is subject to change. For complete details and the most current regulations, please refer to the official Indiana Department of Labor website and consult with Lehigh University's HR and Payroll departments for specific guidance.