Frequently Asked Questions

The Ohio Department of Taxation has compiled a list of frequently asked questions covering many different categories.

To view the questions, click on the "Select Category" bar and then click on the category you are interested in.  A list of questions will appear pertaining to that category. Then click on the question you are inquiring about and the answer will appear.

Our company conducts all of its business in a state that borders Ohio (e.g. Indiana, Kentucky, Michigan, Pennsylvania, or West Virginia). Several of our employees are Ohio residents that commute to that state each work day. Are we required to withhold Ohio income tax on those employees' compensation?

You are not required to withhold Ohio income tax from your Ohio resident employees’ wages since you do not maintain an office or transact business in the state of Ohio. However, for the Ohio resident employees’ benefit, you may withhold Ohio income tax since they will owe tax to Ohio on their compensation.