Instructions For Form It 1 - Ohio Employer Withholding Tax (Page 2 of 2) in pdf

WH 1

Rev. 11/11

year, the withholding was greater than $2,000 but less than

be submitted to the Department of Taxation and two cop-

$84,000.

ies to the employee. If Combined W-2 or 1099R is lost or

destroyed, two substitute copies must be submitted to the

EFT (Electronic Funds Transfer) – An employer whose actual

employee and one to the Department of Taxation marked

or required payments (excluding school district income tax)

“REISSUED BY EMPLOYER.”

during the 12-month period ending June 30 of the preceding

2. Over or under withholding – quarterly, monthly (Ohio form

calendar year exceeded $84,000 must remit by EFT within

IT 501) and EFT payments (Ohio form IT 942)

three banking days from the end of the partial weekly period

a. If the error is discovered in a subsequent period of the

in which an employer had payroll.

same calendar year, indicate the adjustment on the

next Ohio form IT 501 payment card or Ohio form IT

There are two partial weekly withholding periods each week

942 EFT quarterly reconciliation that is ﬁ led.

that consists of a consecutive Saturday, Sunday, Monday

b. If an error is discovered after the annual reconciliation

and Tuesday or a consecutive Wednesday, Thursday and

Ohio form IT 941 has been ﬁ led, complete an amended

Friday. A partial weekly withholding period cannot extend

reconciliation, Ohio form IT 941X for that year. For EFT

from one year to the next.

ﬁ lers, complete an amended Ohio form IT 942, Ohio

Employer’s EFT 4th Quarter/Annual Reconciliation of

Note: If the withholding amount reaches $100,000 or more

Income Tax Withheld.

during the partial weekly period, payment must be remitted

by EFT the next banking day after accumulated.

Employer’s Liability for Withheld Tax

Each withholding agent is liable for the tax required to be with-

Ohio Annual Report

held. For purposes of assessment and collection, amounts

1. To Employees (Combined W-2 or 1099R). For Ohio pur-

required to be withheld and paid to the Ohio Department of

poses on or before Jan. 31 of the succeeding calendar

Taxation are considered to be a tax on the employer. The

year, employers required to withhold shall furnish to all em-

ofﬁ cer or the employee having control or supervision of or

ployees on whom tax was or should have been withheld,

charged with the responsibility of ﬁ ling the report and making

two copies of the report of compensation paid during the

payment shall be held personally liable for any failure to ﬁ le

calendar year and of the amount deducted and withheld

the report and/or pay the tax as required by law.

as tax. Employers may use federal optional form W-2

hereinafter referred to as “Combined W-2,” or “1099R.”

Interest and Penalties

2. To the Ohio Department of Taxation (Ohio form IT 941).

If an employer fails to pay the tax deducted and withheld

Employers who are required to withhold quarterly or

from employees by the due date, interest shall accrue on

monthly (excluding EFT) shall ﬁ le Ohio form IT 941, Ohio

the unpaid tax at the rate provided for under Ohio Revised

Employer’s Annual Reconciliation of Income Tax Withheld,

Code section 5703.47. Interest on the tax due is charged in

on or before Jan. 31 of the succeeding calendar year.

addition to any penalty that may be incurred for late ﬁ ling

3. To the Ohio Department of Taxation (Ohio form IT 942).

and/or late payment of a tax due.

An employer who remits through EFT must submit Ohio

form IT 942, Ohio Employer’s EFT 4th Quarter/Annual

If an employer fails to pay the tax deducted and withheld from

Reconciliation of Income Tax Withheld, no later than the

employees’ compensation by the due date, a penalty of 50%

last day of the month following the end of the calendar

may be assessed on the tax due, unless it is shown the failure

quarter. EFT ﬁ lers are not required to ﬁ le IT 941.

was for reasonable cause and not willful neglect.

4. To the Ohio Department of Taxation (Ohio form IT 3)

All employers required to withhold shall ﬁ le on or before

If a return, or Ohio form IT 501, IT 941, IT 942 or IT 3 is not

the last day of February of the succeeding calendar year

ﬁ led, or ﬁ led after its due date, the penalty is the greater of:

Ohio form IT 3, Transmittal of Wage and Tax Statements.

$50 per month up to a maximum of $500 or 5% per month

Employers are no longer required to send us paper copies

up to a maximum of 50% of the tax due.

of federal form W-2. You are required to maintain these

records for a period of four years from the due date. If

What Records To Keep

the information is not submitted electronically, the Ohio

Every employer required to withhold Ohio income tax is

Department of Taxation may request W-2s periodically

required to maintain accurate records of all persons from

when conducting compliance programs. If you elect to

whom tax is collected.

send your state W-2 information to us on magnetic media,

Records must include:

you must comply using an approved electronic format.

1. Amounts and dates of all compensation paid subject to

Employers with 250 or more W-2 Copy A forms must

withholding.

ﬁ le them electronically. Employers must use the EFW2

2. Names, addresses, school district of residence, principal

format. Electronic format information is also available on

county of employment (nonresidents) and Social Security

the department’s Web site at tax.ohio.gov.

numbers of all employees receiving such compensation.

3. Periods of employment, including periods during which

Corrections

compensation is paid while absent due to sickness or

1. To Employee and the Ohio Department of Taxation

injury.

(Combined W-2 or 1099R). An employer must furnish a

4. Amount of compensation paid by pay period.

corrected Combined W-2 or 1099R if, after the original

5. Copies of Ohio forms IT 501, IT 941, IT 942 and IT 3 ﬁ led

form has been given to an employee, an error is discov-

with the Ohio Department of Taxation.

ered. Corrected statements should be clearly marked

“CORRECTED BY EMPLOYER” and one copy should

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Instructions For Form It 1 - Ohio Employer Withholding Tax Page 2

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