Information Release

EW 1995-01  - Changes to Ohio's Withholding Tax Law - September 15, 1995

Sub. H. B. 715, 120th General Assembly revised the post-1994 Ohio and SDIT1 withholding tax payment and filing requirements for Ohio employers (see Ohio Revised Code section 5747.07 as amended). Set forth below is a chart which summarizes the 1996 changes in the payment and filing requirements.

Ohio and SDIT Withholding
Payment and Filing Schedule
1996

Description of
Employer

Date when withheld
taxes are due

Payment Method

Filing (reporting) Requirements

An employer who accumulates or is required to accumulate undeposited taxes of $100,000 or more (including SDIT) during a partial weekly withholding period2 and whose actual or required payments (including  SDIT) during the twelve-month period ending June 30, 1995 were more than $300,000.

Payment (excluding SDIT) due on the first banking day after the pay date on which the accumulated state income tax and SDIT withheld reaches or exceeds $100,000.

EFT
See Note #1,
below.

Quarterly reconciliation return (Ohio Form IT-942) is due no later than the last day of the month following the calendar quarter. An annual reconciliation form (IT-941) for state income tax withheld is not due. See Note #2, below.

 

Payment of SDIT is due no later than fifteen days following the end of each month.

FORM
SD-101

Ohio Form SD-141 ("School District Employer's Annual Reconciliation of Tax Withheld") is due by January 31 of the next calendar year.

 

An employer who accumulates or is required to accumulate undeposited taxes of $ 100,000 or more (including SDIT) during a partial weekly withholding period and whose actual or required payments (including SDIT) during the twelve-month period ending June 30, 1995 were less than $3000,000.01.

Payment (excluding SDIT) due on the first banking day after the pay date on which the accumulated state income tax and SDIT withheld reaches or exceeds $100,000.

Form
IT-501

An annual reconciliation form (Ohio IT-941) for state income tax withheld is due no later than January 31 of the next calendar year.  See Note #2, below.

 

Payment of SDIT is due no later than fifteen days following the end of each month.

Form
SD-101

Ohio Form SD-141 ("School District Employer's Annual Reconciliation of Tax Withhold") is also due by January 31 of the next calendar year.

 

An employer not previously described whose actual or required payments (including SDIT) during the twelve-month period ending June 30, 1995 were more than $300,000.

Payment (excluding SDIT) due within three banking days after the partial weekly withholding period during which the employer was required to deduct and withhold.

EFT
See Note #1,
below.

Quarterly reconciliation form (Ohio IT-942) is due no later than the last day of the month following the calendar quarter.  An annual reconciliation form (Ohio IT-941) for state income tax withheld is not due.  See Note #2, below.

 

Payment of SDIT is due no later than fifteen days following the end of each month.

Form
SD-101

Ohio Form SD-141 ("School District Employer's Annual Reconciliation of Tax Withheld") is due by January 31 of the next calendar year.

 

An employer not previously described whose actual or required payments (including SDIT) during the twelve-month period ending June 30, 1995 were $84,000 or more but were less than $300,000.01.

Payment (excluding SDIT) due within 3 banking days after the partial weekly withholding period during which the employer was required to deduct and withhold.

Form
IT-501

An annual reconciliation form (Ohio IT-941) for state income tax withheld is due no later than January 31 of the next calendar year.  See Note #2, below.

 

Payment of SDIT is due no later than fifteen days following the end of each month.

Form
SD-101

Ohio Form SD-141 ("School District Employer's Annual Reconciliation of Tax Withheld") is also due by January 31 of the next calendar year.

 

An employer not previously described whose actual or required payments (including SDIT) during the twelve-month period ending June 30, 1995 were more than $2,000  but were less than $84,000.

Payment of state income tax withheld is due no later than 15 days following the end of the month.  See Note #3, below.

Form
IT-501

An annual reconciliation form (Ohio IT-941) for state income tax withheld is due no later than January 31 of the next calendar year.  See Note #2 below.

 

Payment of SDIT is due no later than fifteen days following the end of each month.

Form
SD-101

Ohio Form SD-141 ("School District Employer's Annual Reconciliation of Tax Withheld") is also due by January 31 of the next calendar year.

 

All other employers.

Payment of state income tax withheld is due no later than the last day of the month following the end of the calendar quarter.  See Note #3, below.

Form
IT-501

An annual reconciliation form (Ohio IT-941) for state income tax withheld is due no later than January 31 of the next calendar year.  See Note #2 below.

 

Payment of SDIT is due no later than the last day of the month following the end of the calendar quarter.  See Note #3, below.

Form
SD-101

Ohio Form SD-141 ("School District Employer's Annual Reconciliation of Tax Withheld" is also due by January 31 of the next calendar year.

NOTES

Note #1: EFT = Electronic Funds Transfer method. The EFT method should not be used for payment of assessed amounts. Furthermore, the EFT method does not apply to payments of withheld SDIT.

Note #2: Ohio Form IT-3 ("Transmittal of Wage and Tax Statement") and a copy of IRS Forms W-2 for the calendar year are due by February 28 of the next calendar year.

Note #3: Ohio Revised Code section 5747.07(D) sets forth several circumstances under which the Tax Commissioner can require that an employer pay (remit) withheld taxes on a more frequent basis.

Tax Information Releases are not "Opinions of the Tax Commissioner" within the meaning of ORC section 5703.53. Nevertheless, the above discussion does reflect the Income Tax Audit Division's interpretation of the law.

For more information about EFT payment requirements, call either of the numbers listed below:

1-614-466-8063 Columbus (Ohio area and out-of-state)
Ohio Relay Service: 1-800-750-0750.

For more information about withholding tax requirements and reporting requirements, call either of the numbers listed below:

1-800-282-1780 (Ohio only)
1-614-846-6712 (Columbus, Ohio area and out-of-state)
Ohio Relay Service: 1-800-750-0750.

*   *   *   *    *

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1. SDIT = School District Income Tax withheld or required to be withheld.

2. A "partial weekly withholding period" consists of a consecutive Saturday, Sunday, Monday, and Tuesday or a consecutive Wednesday, Thursday, and Friday. There are two partial weekly withholding periods each week except that a partial weekly withholding period cannot extend from the end of one calendar year into the beginning of the next calendar year. Specifically, if January 1 falls on a day other than Saturday or Wednesday, the partial weekly withholding period ends on the thirty first day of the preceding December, and in such situations there will be three partial weekly withholding periods during that week. Ohio Revised Code section 5747.07(A)(5) states that for purposes of Ohio Revised Code section 5747.07 a "week" begins on a Saturday and concludes at the end of the following Friday.