FAQs - Employer Withholding

When is an employer required to withhold Ohio income tax?When do I need to register for Ohio withholding tax and how do I register?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 Michigan. Several of the employees are Ohio residents that commute to Michigan each work day. Are we required to withhold Ohio income tax on our Ohio resident employees?I am individual hiring a nanny/housekeeper. Do I have to withhold Ohio income tax?Is a company required to withhold Ohio income tax from payments made to an independent contractor?For Ohio income tax purposes, how does Ohio define an “employee?”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?Ohio law requires that I withhold Ohio income tax on employee compensation. What constitutes compensation?Under Federal law group-term life insurance premiums on up to $50,000 of insurance 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, i.e. 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 forms IT 4 and IT 4NR? Are these forms sent to the Ohio Department of Taxation?How many exemptions can an employee claim on form IT 4?Can an employee increase the amount of Ohio tax withholding?When is an employee required to complete a new Form IT 4?As an employer, what am I required to do if I have an employee who has claimed an excess number of exemptions on their Ohio form IT 4?An employee has completed Ohio form IT 4 claiming “exempt.” What should I do?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 that lives in a state neighboring 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 neighboring state with which Ohio has a reciprocal agreement. How can my employee get a refund of their erroneous withholding?How do I determine how much Ohio income tax to withhold from my employees’ 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 won a prize in the Ohio Lottery, and they took out withholding tax. I live outside of Ohio. Why did they withhold Ohio tax? Do I have to pay Ohio tax?As an employer, which returns do I file and how often do I pay the withheld tax?Can you explain the partial weekly filing requirements?My filing frequency has been changed from quarterly or monthly to partial weekly. How does this affect me?My filing frequency has been changed to partial weekly, but I expect my tax liability to drop during the current year. Can I switch to making payments monthly or quarterly?I am a monthly or quarterly filer that voluntarily pays the Ohio withholding taxes by 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 Electronic Funds Transmission (EFT) was not honored. What should I do?Employer withholding returns can 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 my IT 501 form?What if I underpaid Ohio withholding tax?What if I overpaid Ohio withholding tax?How do I amend previously filed returns?I did not receive my withholding forms. What should I do?Where do I obtain withholding forms?Are employers required to send a copy of their W-2 forms to the State of Ohio?Are we required to send a copy of our 1099 forms to the State of Ohio?Can I file our W-2 forms online?How do I report our W-2 forms on magnetic media?To what address do I mail our magnetic media (CD-ROM or magnetic tape) filing of the W-2 forms?Who can I contact if I have any questions concerning filing W-2 information by magnetic media?How do I correct an employee's W-2 form?What are the penalties for not remitting Ohio withholding tax timely?Is there a penalty for filing a withholding form late, even if there is no tax due?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 (Form 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 get a receipt?I received an employer withholding booklet (preprinted or with labels). I no longer have employees working in Ohio or I don't have employees affected by this tax. What should I do?I obtained a new federal Employer’s Identification Number (EIN) resulting from a change in my business status. Can I continue to use my Ohio withholding number?I own a store in Kenton, Ohio and I employ the wife of a local Army recruiter. She has told 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'm in compliance with the federal military spouse tax provisions?What is the new reporting requirement for Professional Employer Organizations?