The Ohio Department of Taxation released employer withholding tax guidance for calendar year 2017 to its website and per Department representatives, the withholding tables in effect since August 1, 2015, continue to apply effective January 1, 2017. (Email response to inquiry, December 12, 2016; telephone conversations, December 13, 2016.)

The Department's publication, 2017 Employer's Withholding Instructions, confirms that the deadline for filing the 2016 Forms W-2 and the Form IT 3 W-2 transmittal is accelerated to January 31, 2017. As in the past, only those employers filing 250 or more Forms W-2 (or more than 250 Forms 1099-R) are required to submit Forms W-2 for calendar year 2016 on CD. Paper Form IT 3 must accompany the CD. Employers filing fewer than 250 Forms W-2 may voluntarily file on CD with the Department. Online filing is not available for filing state Forms W-2 or 1099-R. Specifications for filing the 2016 Forms W-2 are available here.

All employers are required to maintain copies of Forms W-2 and or 1099-R for a period of at least four years from the due date of the forms. If the information is not submitted to the Department on CD, the Department may request W-2s or 1099-Rs periodically when conducting compliance programs.

All employers must electronically submit an annual reconciliation for calendar year 2016, Form IT 941, by January 31, 2017.

Employers are instructed to not send Forms 1099 (such as 1099-MISC, 1099-B, 1099-Div, etc.) for which Ohio income tax withholding is not required, differing from the federal requirement to submit Forms 1099-MISC with nonemployee compensation shown in box 7 because the state participates in the combined federal/state program and receives this information from the IRS.

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