Before placing the table you can go to the prefs and change the behavior for spreadsheets to Link (under File Handling). You'll probably want to change it back after.
Once the spreadsheet is linked, it will prompt you to update the link when you open the file in ID. The downside here is that local formatting in the table will be lost unless you use table and cell styles, or you can format in Excel.
Thank you Peter!
How do I best keep the Excel format in ID.
If you set up the formatting as you want it in Excel it will be fine, or you can set up the table in ID using Table Styles and Cell Styles to define the formatting. You'll only have a problem if you change the style manually in the ID table, then update.