The State of Ohio has made extensive changes to municipal income tax laws (via the Ohio Revised code) effective for tax years beginning on January 1, 2016. These changes impact ALL withholding employers. If your business withholds Nelsonville City Income Tax (as a legal requirement or a courtesy), the due date of monthly or quarterly payments is changing to the 15th of the month following the end of the period. Currently the payments are due by the end of the month following the end of the period.
For example, if you remit withholding taxes monthly:
For tax year 2015 and prior: Taxes withheld in January 2015 were due by February 28, 2015
For tax year 2016 and beyond: Taxes withheld in January 2016 are due by February 15, 2016
For example, if you remit withholding taxes quarterly:For tax year 2015 and prior: Taxes withheld in the first quarter of 2015 were due by April 30, 2015
For tax year 2016 and beyond: Taxes withheld in first quarter of 2016 are due by April 15, 2016
In accordance with the new ORC, for all returns/payments received by mail, the Post Office applied postmark will determine the date of receipt for the determination of any penalty and/or interest. For all returns/payments received via the Ohio Business Gateway, the effective date entered on the transaction will determine the date of receipt for the determination of any penalty and/or interest.
IF YOU USE A PAYROLL SERVICE OR ACCOUNTING FIRM, IT IS VERY IMPORTANT THAT YOU NOTIFY THEM OF THESE CHANGES.
The following penalties for withholding accounts become effective for tax year 2016:
- Non‐filing Penalty: For failure to file a complete City withholding tax return, when due: twenty five dollars ($25.00) per month (or part thereof), not to exceed one hundred fifty dollars ($150.00) for each failure to file.
- Non‐Payment Penalty: For failure to remit the withholding taxes on or before the fifteenth (15th) of the next month following each withholding period: fifty percent (50%) of the tax not timely paid.
Effective for tax year 2016, interest changes yearly based on the Federal short‐term rate (rounded to the nearest whole percent) for July of the previous year plus five percent (5%) for each month (or part thereof)while there is a tax balance due.
Employers, accountants and payroll services are encouraged to review ORC 718 for more information on the new municipal income tax laws by visiting the following site: http://codes.ohio.gov/orc/
Please visit our income tax information page, fax us at (740) 753‐3870, or call us at (740) 753‐2010 Monday–Friday, 7:30 am–4:00 pm