If you are an employer which withholds municipal income tax, be aware that the new due dates in 2016 for depositing taxes withheld are the 15th of the month following the end of the month/quarter being paid. Prior to 2016 deposits were due the end of the month after the withholding period. This is part of the Ohio Municipal Tax Reform bill (HB 5) which was passed in December 2014. Some cities extend the date if the 15th falls on a weekend to the following Monday but, some do not. Check with your local tax department to see what protocol it follows to determine the due dates.
HB 5 also increases from 12 to 20 the number of days during a calendar year a nonresident individual may work in a municipal corporation before that individual is subject to the municipal corporation's income tax on the wages or nonwage compensation earned in the municipal corporation. If the individual works for an employer that has less than $500,000 in annual revenue, that individual's wages are subject to withholding and tax only in the municipal corporation where the individual's employer has its sole, fixed location. Here is a summary of the new municipal tax reform provisions for 2016.
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