Employer Withholding Taxes

Professional Employer Organization / Professional Employer Organization Reporting Entity

New File Upload Instructions

Overview

Effective in 2013 Ohio law added a filing requirement for Professional Employer Organizations and Professional Employer Organization (PEO) Reporting Entities. PEOs are required to file an initial report with the Tax Commissioner within 30 days after commencing business in Ohio or within 30 days after the effective date of the law of March 22, 2013, whichever is later. After the initial report is filed, subsequent reports are filed each calendar quarter. For statutory reference, refer to Ohio Revised Code section 5747.07 (J).

The following items are required to be included on the PEO’s initial report for each client employer pursuant to Ohio Revised Code section 5747.07 (J)(1):

  1. The name, address, charter number (if applicable), and federal employer identification number (EIN) for each client employer,
  2. The date that each client employer became a client of the PEO or PEO reporting entity, and
  3. The names and mailing address of the CEO and CFO of each client employer.

The following items are required on the PEO’s subsequent quarterly reports pursuant to ORC section 5747.07 (J)(2):

  1. The same data listed above as required by ORC 5747.07(J)(1) with respect to each client employer who became a new client of the PEO during the calendar quarter;
  2. If the agreement between the PEO and the client employer was terminated at any time during the calendar quarter, then provide the date during the calendar quarter that the client employer ceased being a client of the PEO or the date the client employer ceased business operations in this state, if applicable;
  3. If the name and mailing address of the CEO or the CFO of a client employer has changed since the filing of the last report, then provide the updated name or mailing address, or both, of the CEO or CFO, as applicable;
  4. If none of the events in this list (1 through 3 above) have changed since the PEO’s filing of the last report, then select “no update” for that client employer.

New Reporting Instructions

A new macro-enabled Excel spreadsheet template has been created to facilitate PEO reporting of client-employer information.  The new macro-enabled Excel spreadsheet allows all data to be entered in one worksheet.  This Excel spreadsheet is simply a tool to export a TXT file.  This TXT file will need to be uploaded through the secure FTP server.  The creation and upload of the TXT file is a new process starting with the April 30, 2018 filing due date.

Save or Download the Excel Template. This template includes all the required fields needed for the initial and subsequent quarterly PEO reports.

The PEO Report Header Data information needs to be entered first on row 3.  This row has a fixed value of “HD” in the ‘RecordType’ field.  Fill-in all the required fields to identify the PEO:  PEO Name, Federal Employer Identification Number, Ohio Withholding Number, Filing Period End Date, Address, City, State, Zip, Contact Name, Email Address, and Phone (Please see the example below).  Next enter your client-employer information into the spreadsheet.  The client information section also has a fixed value in the ‘RecordType’ field.  This value is “DD”.  Please enter all required field that are applicable.

Graph

After you have filled-in the PEO and client-employer information, then click the “Export File” button to create a Data File (Quotes and Comma Separated Data File) to upload on the secure FTP server. This will create a TXT file.  The exported file will be identified by the PEO FEIN, Filing Period End Date and Current Time Stamp.  There will be an underscore (_) separating each identifying field (Please see the examples below).

(Export Acknowledgement)
Excel

(Exported TXT file)
TXT file

Note:  The second tab on the spreadsheet contains the File Layout Specifications.

Subsequent Quarterly Reports

On subsequent quarterly reports, report the information for (i) client employers acquired during the calendar quarter (CEO and CFO information is required), (ii) client employers for whom employee leasing agreements have been terminated or that ceased doing business during the quarter (CEO and CFO information is not required), (iii) changes in CEO or CFO information (for existing client employers), and (iv) no changes to client employers.  The following are the procedures for filing subsequent quarterly reports.

1) No changes to report for a client employer: If there are no changes to report for a client employer from the last report filed, using the Dropdown box in the first column (‘Action’) select “No Update” in the row designated for that client employer.

2) Changes to report for a client employer. If there are changes to report for a client employer, using the Dropdown box in the first column (‘Action’) to select the type of change (Add, Modify or Delete) in the row designated for that client employer. For example, if you added an employer client since the last report, choose “Add.” If you need to report a change in a continuing client employer’s information, choose “Modify” and report the updated information. If a client employer ceased doing business, or the leasing agreement with the client employer was terminated, then choose ‘Delete.’

Uploading the Exported TXT File

The exported TXT file is then transmitted to the Ohio Department of Taxation (ODT) via secure FTP server via the URL below (CTRL+Click on the link below):

https://sftp01.tax.state.oh.us:8443/webclient/Login.isf

After you click on the above link it will take you to the following login page shown below.

Login Screen
Login

For the User Name enter 'dppeo' (without the quotes) and for the password enter 'peoreport' (without the quotes).

Here is the interface.  Click the Upload button with the blue arrow.  Next choose the exported TXT file to be uploaded.  After uploading the TXT file, a message will appear in the center of the bottom of the screen.
File Location

Click on Show Details for more information concerning the upload.

upload complete
Your TXT file has been successfully uploaded. 
success
That completes the filing of the report. After you upload the TXT filet, click on “Logout” on the top right-hand side of the page to close the FTP window.

If you have any questions regarding PEO reporting, please contact our Taxpayer Assistance line at 1-888-304-3211.