IMPORTANT CHANGES TO WITHHOLDINGS REQUIREMENTS
EFFECTIVE JANUARY 1, 2016
Please be advised that municipal income tax withholding due dates and related thresholds are changing as noted below. These changes are the result of the enactment of House Bill 5 by the State legislature. In addition to these changes to withholding tax filing requirements, H.B.5 also includes changes to penalty and interest rates, annual tax return and estimated tax payment due dates and threshold, and other items.
New Withholding Due Dates and Thresholds
Monthly filing and payment is required if an employer has withheld with respect to a municipality more than $2399 in the immediately preceding calendar year, or more than $200 in any one month in the immediately preceding calendar quarter. The due date for Monthly filers is the 15th day of the month following the month withheld.
LAW UPDATE: Effective for the 3rd Quarter of 2016 and beyond, the withholding return/payment due date for QUARTERLY withholders ONLY has been changed to the last day of the month following the last day of each calendar quarter. THIS CHANGE ONLY APPLIES TO QUARTERLY FILERS -- Monthly filings are still due by the 15th of the following month.
Quarterly filing and payment is required if an employer has withheld with respect to a municipality $2399 or less in the immediately preceding calendar year, or $200 or less for each month in the immediately preceding calendar quarter. The due date for Quarterly filers is the 15th day of the month following the end of each quarter prior to 3rd Quarter 2016.
Semi-monthly withholding MAY BE REQUIRED by a municipality of an employer has withheld $12,000 or more in the immediately preceding calendar year with respect to a municipality, or more than $1,000 in any month of the immediately preceding quarter with respect to that same municipality. The due date for Semi-monthly filers are 3 banking days after the 15th of the month, and 3 banking days after the end of each month. WAVERLY DOES NOT REQUIRE SEMI-MONTHLY WITHHOLDINGS
| BEGINNING IN THE 2016 TAX YEAR THE FOLLOWING CHANGES WILL OCCUR: |
For the tax years beginning on or after January 1, 2016, the interest rate to be applied to unpaid income tax, unpaid estimated tax and unpaid withholding balances is 5% per annum. This rate is being published in accordance with Ohio Revised Code 718.27(F) which states that "By the thirty-first day of October of each year the municipal corporation shall publish the rate described in division (A) of this section applicable to the next succeeding calendar year. " This rate is in effect from January 1, 2016 through December 31, 2016 and DOES NOT apply to tax balances for any prior year, regardless of when they are filed, which are still subject to the interest rate of 8% annum or a minimum of $10.00.
Interest Rate for 2016 is 5% (0.42% per month)
Interest Rate for 2017 is 6% (0.50% per month)
Interest Rate for 2018 is 6% (0.50% per month)
Interest Rate for 2019 is 7% (0.58% per month)
Interest Rate for 2020 is 7% (0.58% per month)
Interest Rate for 2021 is 5% (0.42% per month)
Interest Rate for 2022 is 7% (0.58% per month)