Every employer maintaining an office or transacting business within the state of Ohio and making payment of any compensation to an employee, whether a resident or nonresident, must withhold Ohio income tax.
Under US domestic tax laws, a foreign person generally is subject to 30% US tax on the gross amount of certain US-source income.
Categories of workers that are exempt from Ohio withholding taxes include agricultural workers, domestic service workers, providers of low-income services, foreign government services, underage paper deliverers, and non-trade services.
Employer Withholding Tax: This may also be done when filing the final return IT 941 electronically through the Ohio Business Gateway by selecting the box to Cancel Withholding Account. The last date of compensation must also be entered on the form.
Tax-exempt customers Some customers are exempt from paying sales tax under Ohio law. Examples include government agencies, some nonprofit organizations, and merchants purchasing goods for resale. Sellers are required to collect a valid exemption or resale certificate from buyers to validate each exempt transaction.
You can find your Withholding Account Number on notices received from the Ohio Department of Taxation. If you cannot locate this document or account number, please call the Ohio Department of Taxation at (888) 405-4039 to request it. Visit the Ohio Business Gateway and click “Create an Account”.
Categories of workers that are exempt from Ohio withholding taxes include agricultural workers, domestic service workers, providers of low-income services, foreign government services, underage paper deliverers, and non-trade services.
Submit form IT 4 to your employer on or before the start date of employment so your employer will withhold and remit Ohio income tax from your compensation. If applicable, your employer will also withhold school district income tax.
You don't have to file an Ohio return if: You live in Indiana, Kentucky, West Virginia, Michigan or Pennsylvania and your only income from Ohio is wages. If your employer withheld Ohio taxes, you may file an Ohio return to receive a refund.
In Ohio, you have an income tax obligation to both your employment city and your resident city. Your employer is required by law to withhold your work place city tax and if you have "fully withheld", you have no filing requirement with your work place city.