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.
* * * * *
________________________________________
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.