FAQs - Employer Withholding

Where is the best place to get basic filing information if I am a new employer in Ohio?My corporation is a nonprofit tax-exempt organization under federal law. Are we required to withhold Ohio income tax?Our company has an employee that works out of their home in Ohio. Are we required to withhold Ohio income tax on the employee’s compensation?Our company conducts all of its business in a state that borders Ohio (e.g. Indiana, Kentucky, Michigan, Pennsylvania, or West Virginia). Several of our employees are Ohio residents that commutes to that state each work day. Are we required to withhold Ohio income tax on those employees' compensation?The company I work for is not withholding Ohio income tax since they are treating me as an independent contractor, but I believe that I am an employee. What should I do?Is a company required to withhold Ohio income tax from payments made to an independent contractor?Ohio law requires that I withhold Ohio income tax on employee compensation. What constitutes compensation?Under federal law, premiums on group-term life insurance of $50,000 or less are excluded from an employee’s taxable wages. Does Ohio also allow these amounts to be excluded?Is Ohio income tax withholding required on qualified stock options - e.g. incentive stock options (ISO) and employee stock purchase plans (ESPP)?Is Ohio income tax withholding required on “nonqualified” or “nonstatutory” stock options (NSO)?What are the Ohio IT 4 and Ohio IT 4NR? Are these forms sent to the Ohio Department of Taxation?How many exemptions can an employee claim on the Ohio IT 4? Also, what if an employee claims an excessive amount of exemptions or states they are exempt from Ohio withholding tax on their Ohio IT 4?Can an employee increase the amount of Ohio tax withholding?When is an employee required to complete a new Ohio IT 4?I have an employee working in Ohio that lives in a state other than Ohio. Must I withhold Ohio income tax from their wages?I have an employee working in Ohio that lives in a state that borders Ohio. Must I withhold Ohio state income tax from their wages?In error, I withheld Ohio state income tax for an employee who lives in a state that has a reciprocal agreement with Ohio. How can my employee get a refund of their erroneous withholding?How do I determine how much Ohio income tax to withhold from my employee's pay?Can I withhold a flat rate for my employees just like a local tax?What is the state withholding rate on supplemental compensation such as bonuses?I live outside of Ohio and won a prize in the Ohio Lottery. They took out Ohio withholding tax. Why do I have to pay Ohio tax?How does Ohio treat the income tax withholding on prizes (either money, goods, or services) awarded through raffles and other charitable fundraisers?We have an active employee who was recently deceased. Do we withhold Ohio taxes from his/her final check?Do we need to take out Ohio employer withholding tax on the pastor of our church?I am a monthly or quarterly filer that voluntarily pays the Ohio withholding taxes by Electronic Funds Transfer (EFT). What forms do I need to file?What if I have paid the incorrect amount of Ohio withholding tax by EFT?My bank has notified me that my check or EFT was not honored. What should I do?Employer withholding returns must be filed and payments made on the Ohio Business Gateway (OBG). What is the Ohio Business Gateway?Can I pay my employer withholding tax by using a credit card?Can I include my school district withholding tax with my Ohio withholding tax on the Ohio IT 501?Are we required to send a copy of our 1099 forms to the State of Ohio?Can I file our W-2 forms online?Can I be held personally liable for not paying our company’s Ohio withholding liability or not filing our company’s Ohio withholding tax returns?I have paid a withholding tax assessment in full, but the assessment still shows outstanding on a credit report. How do I get the assessment cleared up?I have a question about municipal (city) income tax withholding. Who may I contact?The IRS has requested that I provide state recertification of taxable wages (IRS 940). Who do I contact?We are selling or are closing our business. By what date do we need to file our final return and pay any withholding tax liability?We are contemplating the purchase of a business or all of its assets or inventories. As a buyer, are we required to withhold part of the purchase price to cover the unpaid withholding tax liability of the seller?I am selling my business and I need a receipt showing that my Ohio income tax withholding liability is paid in order to provide evidence to a buyer or to transfer a liquor license. How do I obtain a receipt?I obtained a new federal employer’s identification number (FEIN) resulting from a change in my business status. Can I continue to use my Ohio withholding number?I employ the wife of a local Army recruiter. She has informed me that she and her husband are not residents of Ohio. How do I handle Ohio state income tax withholding for her wages so that I am in compliance with the federal military spouse tax provisions?What is the reporting requirement for Professional Employer Organizations?