Annual Payroll Reconciliation Instructions - Canton City Income Tm Department
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1Annual Payroll
Instructions
Please fill out
this
form
completely,
aandfle it on or
before March 31. You may mail it
to the Canton City Income
Tm
Department, PO Box 8876, Canton
OH 44 711 -88 76, or hand deliver it
to our ofice at 424 Market Ave.,
North (4th Floor). Tke form must
be signed, and all
W-2's
and
1099 's (or a detailed computer
print-out of each employee b
W-2/1099 information) must be
attached, or the filing cannot be
accepted. Feelpee to call our ofice
with any questions (430-7900), or
visit us online:
cam
Part 1
-
Account
In formation
Enter current E N , and any other
E N used by a directly related
company for Canton City Income
Tax reporting purposes in the past
year.
If an entity is acting as a pay agent
for &liated companies, pursuant
to
Rev.
Proc. 70-06, please attach a
list of the names and EINs of the
mliates which currently are
conducting business, or are active
accounts, in Canton.
Enter account type.
Enter contact information. Most
issues and questions we have
regarding the Annual Payroll
Reconciliation can be addressed
with a quick phone call or e-mail.
Please help us to be more efficient,
by including
this important
information.
P a r t
2
-
Reconciliation
of Federal
Wages
Canton City Income Tax is imposed
on "qualifying wages" as defined
in Section 3121(a) of the Internal
Revenue Code, without regard to
the Social Security wage limitation,
adjusted as follows:
DEDUCT:
J any amount included in wages
if the amount constitutes
compensation attributable to a
plan or program described in
Section 125 of the Jnternal
&venue Code.
ADD:
J any amount not included in
wages because the amount arises
from the sale, exchange, or other
disposition of a stock option, or
the sale, exchange, or other
disposition of stock purchased
under a stock option.
J any employee contribution or
elective deferral that is not
included in wages if the amount
is an amount described in Section
401(k) or 457 of the Internal
Revenue Code,
J any supplemental
unemployment compensation
benefits not included in wages,
described in Section 3402(0)(2) of
the Internal Revenue Code,
J any amount excluded from
wages solely because the employee
was employed by the employer
prior to April 1,1986.
Be sure to note, on the appropriate
line, the number of W-2 b being
totaled and reconciled, and the
number of Forms 1099 M7SC and
their total dollar amount.
Part 3 - Reconciliation
of Tax Mthheld
The taxable wages are reconciled
with local tax withholdings by
reporting separately the wage
amount subject to Canton's
t a x
at
2%, and the amount taxed at less
than 2%. Begin with the "Canton
Taxable Wages" from Part 2. The
wages "Subject to tax at 2%," and
"Subject to tax at less than 2%"
should add up to this amount. For
wages "Subject to tax at less than
2%," enter the amount of wages for
which Canton is not receiving the
full 2%
tax (i.e., when Canton resi-
dents are working in a city where
the tax rate is less than 2%, and the
difference between that city's rate
and 2% is being withheld and
remitted to Canton). Enter the
percentage which represents the
difference between Canton's tax
rate (2%) and the tax rate of the
other city for which taxes have
been withheld. Add the two
t a x
amounts to determine the "Total
Canton Income Tax due." Add tax
withheld for Canton, from "block
21" of all subject W-2's, to derive
"Total Canton Income Tax
withheld."
Part 4
-
Reconciliation
of Deposits
Add quarterly amounts of
t a x
remitted to Canton, to calculate
"Total Canton Income Tax paid."
Subtract fiom this amount, the
greater of the "Total
tax
due", or
"Total tax withheld" from Part 3.
If the difference is a negative
number, you have a balance due.
Please remit payment with this
reconciliation.
If the difference is a positive
number, you have overpaid your
withholding for the year. The
overpayment will be used to credit
subsequent payroll withholdings.
(Transfer Credit)
If there will be no more payroll
withholdings, the overpayment can
be refunded. Please provide a
detailed statement of explanation.
Be sure to
fill
out
pi1
4 varts of the
form COWLETELK
No taxes of less than one dollar
($1.00) shall
be
collected, or refinded.
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