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.

If I own 20% or more of a Pass Through Entity and received compensation from that Pass Through Entity utilizing a PEO (Professional Employer Organization) for payroll, is the compensation reclassified as business income?

Yes.  As a result of an amendment to SB 8, wages/compensation reported on a W2 issued to a shareholder/investor with 20% or more ownership of the Pass Through Entity utilizing a PEO (Professional Employer Organization) is subject to reclassification.

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