As of January 1, 2016, changes to Ohio’s municipal income tax law made by House Bill 5 are in effect. CPAs who assist their clients with payroll tax and business owners who withhold municipal income tax for their employees should determine if they will be affected by these changes.
The deadline for municipal income tax remittance for monthly and quarterly filers is now the 15th of the following month. Previously, many municipalities had allowed until the end of the month. The wage withholding schedule depends on the amount the employer withheld during the previous year or the amount the employer withheld during any month in the previous quarter. See the below withholding schedule for these thresholds:
Also, municipalities can require semimonthly remittance if an employer’s withholding for the previous year was greater than $11,999, or greater than $1,000 in any month of the preceding year. Some municipalities are only requiring that payment from quarterly remitters be postmarked by the due date while others require that the payment be received by the due date. You may need to consult your city to determine which rule they are administering. Be sure to check with your payroll preparer if you are unsure how this change will affect your business.