Changes mandated by Ohio Revised Code Chapter 718 (House Bill 5 – Municipal Income Tax Uniformity)

IMPORTANT NOTICE TO WITHHOLDERS – THE STATE OF OHIO HAS CHANGED THE DUE DATE FOR MUNICIPAL INCOME TAX WITHHOLDING PAYMENTS TO THE 15TH OF THE FOLLOWING MONTH OR LAST DAY OF THE FOLLOWING QUARTER BASED ON NEW THRESHOLDS.

IF YOU USE A PAYROLL PROCESSING COMPANY, PLEASE INFORM THEM OF THIS CHANGE TO AVOID PENALTY AND/OR INTEREST FOR LATE PAYMENTS.

WHO MUST FILE:
1.Each employer located within the Village of Pandora is required to withhold the tax for all employees age (16) sixteen and older.  For tax years 2024 and after, age (18) eighteen and older.
2.Before beginning work within the Village, each NON-RESIDENT EMPLOYER doing business in the Village must register with the Village Income Tax Department to determine their filing requirements.

DEPOSIT REQUIREMENTS:
MONTHLY – Employers must remit monthly if withholding in the previous calendar year exceeded $2,399.00 or if the amount required to be withheld during any month of the previous calendar quarter exceeded $200.00.
QUARTERLY – Employers can remit quarterly if their withholdings are under the thresholds described for monthly filers.

WITHHOLDING DUE DATES:
Monthly returns and payments must be received no later than the 15th of the month following the end of the reporting period. Quarterly – last day of the month following last day of the quarter.

RECONCILIATION DUE DATE:
The reconciliation due date is the last day of February.

INTEREST AND PENALTIES:
Interest – Federal short term rate, rounded to nearest whole number, plus five percent, may change annually. (See Annual Interest on website).
Late Filing Penalty – $25.00 per month or fraction of a month with a maximum of $150.00.  For tax years ending on or after January 1, 2023 a penalty not exceeding $25.00, first time filers $0.00.
Late Payment Penalty – 50% of the total tax due.

OCCASIONAL ENTRANCE – There are multiple changes to the Occasional Entrance language including, but not limited to, business classifications, preponderance of a day language and definitions of worksite locations. Please refer to Ordinance No. 611-2023, Section 4 for further details.

RECONCILIATION RETURN
An employer shall file a Withholding Reconciliation Return by the due date listing the names, addresses, and social security numbers of all employees from whose qualifying wages tax was withheld or should have been withheld for the Municipality during the preceding calendar year, the amount of tax withheld if any, from each such employee’s qualifying wage, the total amount of qualifying wages paid to such employee during the preceding calendar year, the name of every other municipal corporation for which tax was withheld or should have been withheld from such employee during the preceding calendar year, any other information required for federal income tax reporting purposes on Internal Revenue Service form W-2 or its equivalent form with respect to such employee, and other information as may be required by the Tax Administrator.