Employer Withholding Taxes

Resources for Payroll Service Providers

The Ohio Department of Taxation is pleased to partner with the various professionals who compile and submit employer withholding filings on behalf of the employers within Ohio.  The following resources are designed to increase awareness of department policies and aid in compliance.

Payroll Service Providers:

5703-7-19 requires ALL employer withholding and school district employer withholding taxpayers must file and pay electronically.  Employers and/or their payroll providers who do NOT adhere to this requirement may be subject to a penalty of up to $500 for each occurrence for failure to do so.

For instructions on how to access client accounts on the Modernized Ohio Business Gateway please review the document and video available in the links below:

Ohio form WT‐8655 is a Reporting Agent authorization which designates the employer’s Reporting Agent/Payroll Provider for employer withholding taxes. The form is completed by the employer and given to the employer’s Reporting Agent.  Reporting agents agree to provide authorization to the Ohio Department of Taxation within 24 hours of request.

Form WT 8655 - Reporting Agent Authorization

Form WT 8655 - Frequently Asked Questions

Guidance on requesting refunds:

https://www.tax.ohio.gov/portals/0/forms/employer_withholding/Generic/WT_AR.pdf

Potential Bulk Filers:

The Ohio Department of Taxation, through the Ohio Business Gateway (OBG), now offers payroll service providers and electronic return transmitters the capability to file state and school district withholding tax returns with the Ohio Department of Taxation via bulk file upload, with payment by ACH debit or ACH credit.  Bulk filing is used primarily by payroll companies to submit employer withholding taxes to the Ohio Department of Taxation. Bulk filing enables companies to submit large numbers of filings in a single file.

In order to submit bulk files, you will need to register as a bulk filer in addition to already having an active Gateway account.  You must have a Federal ETIN (Electronic Transmitter Identification Number) as well as a Federal EIN (Employer Identification Number). OBG will accept proof of an ETIN application in order to begin the registration process.

The Gateway is capable of receiving bulk filings for the following employer withholding services.

  • Ohio IT-501
  • Ohio IT-941
  • Ohio IT-942 (Quarterly)
  • Ohio IT-942 (4th Quarter/Annual)
  • Ohio SD-101
  • Ohio SD-141

For more details regarding how to become a Bulk Filer please refer the Bulk Filing Walkthrough Document, a step-by-step guide on how to become a Bulk Filer.

For additional information, please follow the links below: 

Bulk Filing Walkthrough Document

Bulk Filing Implementation Guide - Part A

Bulk Filing Implementation Guide – Part B

Bulk Filing Quick Reference

Bulk Filing IT-501 Field Mapping

Bulk Filing IT-941 Field Mappings

Bulk Filing IT-942 (Quarterly) Field Mappings

Bulk Filing IT-942 (4th Quarter/Annual) Field Mappings

Bulk Filing SD-101 Field Mappings

Bulk Filing SD-141 Field Mappings

Bulk Filing Certification Testing

Bulk Filing Troubleshooting Reference

Questions regarding the material can be directed to ODT's Bulk File Team:  bulkfileEWT@tax.state.oh.us

Existing Bulk Filers:

The ratio for the Acknowledgement 2 (ACK2) and the payment must be 1:1. Bulk filers must wait to receive the ACK2 email and then make a single lump sum payment for the entire amount due indicated on the ACK2. This is because the payment amount provided in the ACK2 email exclusively includes the successful transmissions and omits the rejected files.

  • The aggregate total issued on the ACK2 must always precisely match the payment made.  When it does not, ODT’s system is unable to process the payment and/ or post it to the clients’ Ohio employer withholding accounts. The Department of Taxation is not responsible for payments that cannot post because of errors made by the bulk filer.
  • Filers utilizing various bank accounts for payments, will need to have various transmissions, each including files where the payments will be paid from the same bank account.  Multiple payments for the same transmission instead of the lump sum described above, will NOT be accepted.
  • Never submit payments prior to dropping the files containing the liability.  The transmission may include files that are ultimately rejected, which will effectively alter the ACK2 amount. Instead please only submit the corresponding payments after the ACK 2 has been received.  
  • Payments made after the settlement date also impede ODT’s automated process, requiring manual intervention to resolve.
  • Since the process is automated and due to the sheer volume of files and payments received, it is not feasible to monitor payments and verify on a regular basis that they have posted. Typically, the first indication that a payment was not posted will be clients receiving billing notices from the Department of Taxation. Thus, we do not research payments that have not posted until we are informed of the situation by you or your clients.

If an error is made, please be as proactive as possible in initiating the resolution by notifying the Ohio Department of Taxations’ Bulk File Team via email: bulkfileEWT@tax.state.oh.us

 Voluntary Disclosure — This program is designed for entities who believe they have outstanding tax liabilities and wish to resolve them.