The Ohio Department of Taxation released the 2020 school district withholding tax rates and the 2020 employer and school district withholding tax filing guidelines publication.

As we reported, the Department previously released revised income tax withholding tables, effective with wages paid on and after January 1, 2020.The 2020 withholding tax filing deadlines were also released. (EY Payroll Newsflash Vol. 20, #213, 12-13-2019.)

State Form IT 4 required

In addition to federal Form W-4, new employees and current employees making changes to their state withholding exemptions are required to submit Form IT 4, Employee's Withholding Exemption Certificate, to their employer. Employers must withhold tax from the employee's compensation without exemption if Form IT 4 is not provided. In certain situations, in lieu of completing Form IT 4, an employee must complete a Form IT 4NR, IT 4MIL or IT MIL SP.

Large employers must now file Forms W-2 electronically

Employers filing 250 or more Forms W-2 with the Department must file electronically over the Department's Business Gateway W-2 Upload Feature. The option to file Forms W-2 information by CD has been eliminated. As previously reported, the deadline for filing the calendar year 2019 Forms W-2 is January 31, 2020. Employers filing Forms W-2 electronically are not required to submit Form IT 3, Transmittal of Wage and Tax Statement. (Emailed notice from the Department, 1-10-2020.)

Specifications for filing the 2019 Forms W-2 are available here.

Employers filing fewer than 250 Forms W-2 with the SSA are not currently required to file Forms W-2 with the Department. The Department however encourages these employers to file the forms electronically over the Business Gateway portal. A small employer that chooses not to file Forms W-2 electronically should not also submit these forms on paper. Note, however, that the Department may request Form W-2 information when conducting its compliance programs. IMPORTANT: paper Form IT 3 (without the paper Forms W-2) is required to be filed. (2020 Ohio Employer and School District Withholding Tax Filing Guidelines publication; email response to inquiry, 1-13-2020.)

All employers must electronically submit an annual reconciliation for calendar year 2019, Form IT 941, by January 31, 2020.

Payors that issue 250 or more Forms 1099-R that show Ohio withholding continue to be required to submit this information on CD, along with Paper Form IT 3. Online filing of Forms 1099-R is not yet available.The deadline for filing calendar year 2019 Forms 1099-R is January 31, 2020.

Specifications for filing the 2019 Forms 1099-R are available here.

For more information on Ohio withholding tax, see the Department's website.

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EY Payroll News Flash