Depositing and Reporting Withheld Taxes: Ohio
Federal law and guidance on this subject should be reviewed together with this section.
Author: Vicki M. Lambert, The Payroll Advisor
- An employer's filing frequency is based on its combined Ohio state and school district withholding for the 12-month period ending June 30 of the preceding calendar year. Quarterly or monthly payments, excluding payments made by electronic funds transfer (EFT), apply to all employers that are required to withhold. Two thresholds trigger the requirement to pay by EFT. Penalties are imposed for noncompliance. See Deposit Thresholds and Schedules; Electronic Deposit Requirements and Penalties.
- All employers that are required to file federal Forms W-2, Wage and Tax Statement, must file Form IT 941 by January 31 of the following year. In addition, all employers required to withhold must file Form IT-3, Transmittal of Wage and Tax Statement, on or before the last day of February of the following calendar year. An employer with less than 250 Forms W-2 must also file Form IT 3, but it is not required to submit paper copies. See Annual Reconciliation Forms and Filing Deadlines.
- Employers filing 250 or more Forms W-2, Copy A, must file them electronically or on magnetic media. See Electronic and Magnetic Media Form W-2 Reporting Requirements.
- Payments of withheld Cincinnati income tax are made quarterly or monthly depending upon the total amount to be remitted. Employers that are required to file federal taxes by electronic funds transfer (EFT) are required to file Cincinnati income taxes by EFT as well. Employers are also required to file an annual return on Cincinnati Form W-3, Wage Reconciliation, by the last day of February following the end of the calendar year. See City of Cincinnati Income Tax.
- Deposits of withheld Canton income tax must be made on a monthly or quarterly basis. The applicable period depends on the amount of income tax withheld. Employers are required to file an Annual Payroll Reconciliation return form. A copy of all federal Forms W-2, Wage and Tax Statement, or the equivalent Ohio Forms IT 2, must accompany the reconciliation. Employers may file Forms W-2 or IT 2 on magnetic media, instead of on paper, using the MMREF-1 format. EFT is also permitted for tax payments using the ACH credit system. See City of Canton Income Tax.