You need to use Word's built in Heading Styles. Format each Heading as an Outline Heading and adjust the indentation, Font, Numbering, Spacing, etc. to suit your needs.
I suggest that you save these to a template (called something like HeadStyles.dot) which you can then add to the Word Startup folder so that they are globally available for all documents.
The ToC will be created from the Headings correctly but please note that although ToC 1 is tied to Heading 1, ToC 2 to Heading 2 etc., the actual ToC styles are independent from the Heading Styles!
So if you need to change the way the ToC looks, you need to edit the ToC styles and not the Heading Styles.
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