School district tax rates and a district’s method of taxation can be found on the Ohio Department of Taxation’s "Employer Withholding: Table of Contents" website.įor traditional tax base school districts, an employer must use the same wage base and number of exemptions they use when calculating the employee’s Ohio income tax rate. How Much School District Tax Should an Employer Withhold? School districts impose a tax using one of two methods: traditional or earned income. How Much Ohio Income Tax Should an Employer Withhold? To determine how much Ohio income tax to withhold, visit the Ohio Department of Taxation’s Employer Withholding Tables website. Complete Application for Registration as an Ohio Withholding Agent (Ohio IT 1) and mail it to the address provided on the form or fax it to the Ohio Department of Taxation at (614) 387-2165. Call 1-88, listen for the message, and then press 2 to connect with an agent. Registration can be completed online through the Ohio Business Gateway. Employers that are required (or choose) to withhold Ohio’s taxes from employees’ wages must register with the Ohio Department of Taxation. Registering as an Ohio Withholding Agent. Ohio requires an employer to keep Ohio IT 4 in its records for at least four years and must make it available to the Ohio Department of Taxation upon request. If no Ohio IT 4 is completed, then an employer must withhold the Ohio’s taxes from an employee’s wages. 5747.06(A)(1) through (6)” under Section III of Form IT 4. For agricultural employers that are not going to withhold Ohio’s taxes, it must have each employee check the box next to “I am exempt from Ohio withholding under R.C. It is important that each employer, even an agricultural employer, have its employees complete an Employee’s Withholding Exemption Certificate (Ohio IT 4). An agricultural employer is under no obligation to withhold Ohio taxes, but some do. Because of this, an employee may request their employer to withhold their Ohio taxes from each paycheck. If an employee does not have their Ohio taxes withheld from their pay, they may be required to make quarterly estimated tax payments to the state. An agricultural employee must still pay Ohio income tax and their local school district tax on all income earned throughout the year. in the employ of the owner or other operator of a farm, in connection with the operation, management, conservation, or maintenance of such farm and its tools and equipment.Ĭan Ohio’s Agricultural Employers Agree to Willingly Withhold Ohio’s Taxes? In short, the answer is yes.on a farm, in the employ of any person, in connection with the cultivating, raising, and/or harvesting of any agricultural or horticultural commodity or.“Agricultural labor” includes all services performed: However, under Ohio law, Agricultural employers are not required to withhold Ohio taxes from wages paid to employees, so long as the employees fall under the definition of agricultural labor in 26 U.S.C. Generally, employers are required to withhold Ohio income tax and school district tax from employees’ wages. Agricultural employers should seek out the counsel and guidance of an attorney or other tax professional to help ensure compliance with Ohio tax law. The information contained within this series is not meant to be legal and/or tax advice, it is for educational purposes only. We first discuss Ohio’s income and school district taxes and then we focus on Ohio’s unemployment insurance tax and Ohio’s workers’ compensation requirement for all employers. This series does not cover the business income or personal income tax reporting obligations of agricultural employers. This series covers an employer’s Ohio tax obligations and requirements that arise simply because a business has employees. This installment of the series provides an overview of Ohio employment taxes and additional employer obligations for Ohio’s agricultural employers. NEW! Introduction to Tax Preparation CourseĪs promised, here is the next and final installment of “An Agricultural Employer’s 2021 Tax Obligations: A Series” discussing an agricultural employer’s requirements and obligations under Ohio law.Planning for the Future of Your Farm Workshops.
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