Just a reminder for businesses filing municipal income tax withholding quarterly in Ohio: the deadline for quarterly filing has changed to the 15^th day of the month following the quarter’s end. Previously, businesses had until the end of the month following the quarter’s end to file in many Ohio municipalities.

This deadline change went into effect Jan. 1, 2016 as part of tax reform in Ohio House Bill 5, and is one of several changes going into effect this year in an effort to create uniformity among municipal tax requirements.

Penalties for late filing of income tax withholding were also part of H.B. 5, allowing municipalities to charge up to 50% of the amount not paid on time.

The quarterly filing deadline change applies to employers that withheld less than $2,399 last year and less than $200 per month for the preceding quarter.

Other municipal deadlines for monthly withholding filers (due by 15^th day of following month if previous year’s annual withholding was more than $2,399, or more than $200 in any month in preceding quarter) and semi-monthly withholding filers (due within three banking days of: 15^thday of month and last day of month if previous year’s annual withholding was more than $11,999, or more than $1,000 in any month in preceding year) were standardized as part of H.B. 5, with many other provisions affected by the legislation.

To learn more about municipal tax code reform from H.B. 5, please contact your Whalen & Company representative.

Sources:

• Ohio Society of CPAs – Municipal Withholding Deadline Changes in 2016
• Ohio Legislative Service Commission – H.B. 5 Summary 
• Ohio Society of CPAs – Summary of Key Provisions from H.B. 5