Ohio Employer Withholding Tax printable pdf download

WH 1

Rev. 12/15

Ohio Employer Withholding Tax

General Guidelines

Who Must Register

6. Services not in the course of the employer’s trade or business

All employers maintaining an ofﬁ ce or transacting business in Ohio

to the extent paid in any medium other than cash;

and required to withhold federal income tax must register by one

7. Residents of Michigan, Indiana, Kentucky, West Virginia, and

of these three ways:

Pennsylvania, due to reciprocal agreements with Ohio.

By Internet: Register online through the Ohio Business Gateway

Who Is an Employee for Withholding Purposes

(OBG) at business.ohio.gov and follow the instructions for Ohio

Every individual who performs services subject to either the con-

Taxation – New Account Registration; OR

trol and/or will of an employer, whether as to what shall be done

and/or how it shall be done, is an employee for purposes of Ohio

By Telephone: Call 1-888-405-4089, listen for the message and

income tax. It does not matter that the employer permits the em-

then press 2 to connect with an agent; OR

ployee considerable discretion and freedom of action, so long as

the employer has the legal right to control either the method and/

By Paper: Complete Ohio form IT 1, Application for Registration

or result of the services.

as an Ohio Withholding Agent, and mail it to the address shown on

the form or fax it to us at (614) 387-2165.

All employees, except residents of Michigan, Indiana, Kentucky,

West Virginia and Pennsylvania, who work in and/or perform per-

An Ohio withholding account number will be assigned to new with-

sonal services in Ohio are subject to withholding of Ohio income

holding agents after registration. All forms and correspondence

tax to the extent of compensation paid for their services in Ohio.

must reﬂ ect this account number.

The information required for registration includes:

Reports and Forms That Must Be Filed:

1. Federal employer identiﬁ cation number;

Ohio Withholding Exemption Certiﬁ cate: Each employee must

2. Type of business and business code;

complete an Ohio form IT 4, Employee’s Withholding Exemption

3. Date payroll anticipated;

Certiﬁ cate, or the employer shall withhold tax from the employee’s

4. Name;

compensation without exemption.

5. Trade name, if any;

6. Business address and/or mailing address;

Ohio Withholding Tax Returns: Effective Jan. 1, 2015, in accor-

7. Ohio liquor permit number (if applicable); AND

dance with Ohio Administrative Code rule 5703-7-19, employers

8. Name(s) and title(s) of the individual(s) responsible for ﬁ ling

are required to ﬁ le state and school district income tax withholding

returns and making payment of Ohio withholding tax.

returns and make payment of the withheld taxes through the OBG.

All employers liable for withholding Ohio income tax must register

Employers subject to withholding must make payments in the

within 15 days of the date that such liability begins.

amounts required to be withheld. The withholding tax forms that

you ﬁ le are based on your ﬁ ling frequency. Monthly and quarterly

Who Must Withhold

ﬁ lers remit state income tax withholding payments on OBG using

Every employer maintaining an ofﬁ ce or transacting business within

Ohio form IT 501. Employers who have been approved under the

the state of Ohio and making payment of any compensation to an

opt out provision to ﬁ le paper state income tax withholding returns,

employee, whether a resident or nonresident, must withhold Ohio

remit withholding tax payments using Ohio form IT 501, mailed to

income tax.

the Ohio Department of Taxation with remittance made payable to

the Ohio Treasurer of State. Partial-weekly ﬁ lers are required to

Withholding is not required if the compensation is paid for or to:

pay withheld taxes by EFT and do not ﬁ le or send in form IT 501.

1. Agricultural labor as deﬁ ned in Division G of Section 3121 of

Title 26 of the United States Code;

Filing Frequency: An employer’s ﬁ ling and payment frequency for

2. Domestic service in a private home, local college club, or local

state income tax withholding is determined each calendar year by the

chapter of a college fraternity or sorority;

combined amount of state and school district taxes that were with-

3. Service performed in any calendar quarter by an employee un-

held or required to be withheld during the 12-month period ending

less the cash remuneration paid for such service is $300 or more

June 30 of the preceding calendar year (i.e., the “look-back” period).

and such service is performed by an individual who is regularly

employed by such employer to perform such service.

Quarterly payments must be remitted with Ohio form IT 501 on OBG

4. Services performed for a foreign government or international

by the last day of the month following the end of each calendar quarter,

organization;

if the combined amount of taxes that were withheld or required to be

5. Services performed by an individual under the age of 18 in the

withheld was $2,000 or less during the look-back period. Employers

delivery or distribution of newspapers or shopping news, not

who registered on or after July 1 of the preceding calendar year will

including delivery or distribution to any point for subsequent

also remit quarterly, unless notiﬁ ed otherwise.

delivery or distribution or when performed by such individual

under the age of 18 under an arrangement where newspapers

Monthly payments must be remitted with Ohio form IT 501 on OBG

or magazines are to be sold by him at a ﬁ xed price, his com-

within 15 days following the end of each month, if the combined

pensation being based on the retention of the excess of such

amount of taxes that were withheld or required to be withheld was

price over the amount at which newspapers or magazines are

greater than $2,000 but less than $84,000 during the look-back period.

charged to him;

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Ohio Employer Withholding Tax

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