Rev. 12/22 
                                        
                              2023 Ohio Employer and School District Withholding 
                                                        Tax Filing Guidelines 
                                                                           
                                                   of filing the report and making payment shall be      IT 4 MIL  (Military Employee Withholding 
 EMPLOYER WITHHOLDING                              held  personally liable for any failure to  file the   Exemption Certificate) 
                                                   report and/or pay the tax as required by law.         IT MIL-SP (Exemption from Withholding  - 
Who Must Withhold Ohio Income                                                                             Military Spouse Employee) 
Tax                                                Registration                                          
                                                                                                        Note:  The employer must keep the IT 4 in  its 
Every employer maintaining an  office or           All employers required to withhold Ohio income       records for at least four (4) years and must make 
transacting business within the state of Ohio and  taxes must register within 15 days of when such      available to the Ohio  Department of  Taxation 
making payment of any compensation to an           liability begins. Register online through the Ohio   upon request. 
                                                                                                         
employee, whether a resident  or nonresident,      Business      Gateway        (Gateway)        at
                                                                                                        Ohio IT 501 Return for Income Tax Withheld: 
must withhold Ohio income tax.                     gateway.ohio.gov.  The FEIN (Federal Employer         To report and pay the Ohio income tax 
                                                   Identification  Number), legal name of the 
                                                                                                          withheld for the period. 
Withholding is not required  in the following      business,  and e-mail address  are  needed to         Not required if there is no Ohio income tax 
situations per ORC 5747.06(A):                     register the business and complete the 
                                                                                                          liability for the period. 
   Agricultural labor as defined in division G of withholding account registration process. Once        The filing of all IT 501s does not complete the 
    section 3121 of Title 26 of the United States  the  registration has  been completed,  employer 
                                                                                                          filing requirement for the tax year.  The 
    Code.                                          withholding and school district withholding 
                                                                                                          annual reconciliation is required. See below. 
   Domestic service in a private home, local      returns and payments can be submitted                 Due        dates    are      available      at 
    college club, or local chapter of a college    immediately. 
                                                                                                          https://tax.ohio.gov/business/resources/e
    fraternity or sorority.                         
                                                                                                          mployer-withholding. 
   Service performed in  any  calendar quarter    For questions regarding the registration process, 
                                                                                                         
    by   an   employee        unless   the   cash  call 1-888-405-4089. 
                                                                                                        Ohio IT 941 Annual Reconciliation of Income Tax 
    remuneration paid for such service is $300 or                                                       Withheld: 
                                                   How Much Tax to Withhold 
    more and such service is  performed by an                                                            To reconcile the Ohio income tax withheld 
    individual who is regularly employed by such 
    employer to perform such service.                                                                     and payments for the entire calendar year. 
                                                   The employer withholding tables and calculation       Filed by employers with quarterly or 
   Services  performed         for  a  foreign    methods           are        available        at       monthly filing frequency (see filing 
    government or international organization.      https://tax.ohio.gov/business/resources/employ         frequency explanations below). 
   Services performed by an individual under      er-withholding.                                       Due by January 31 stof the following tax year 
    the age of 18 in the delivery or distribution                                                         or no later than 15 days after the 
    of newspapers or shopping news.                Electronic Filing Requirement                          discontinuation of the business. The tax year 
   Services not in the course of the employer’s 
                                                                                                          2022 deadline is January 31, 2023. 
    trade or business to the extent paid in any    Employers are required to electronically file and     Total tax withheld must equal W-2s/1099-Rs 
    medium other than cash.                        pay Ohio employer and  school district                 submitted. 
   Residents of  Michigan, Indiana,  Kentucky,    withholding taxes either through the Gateway or 
    West Virginia,  or Pennsylvania earning        through the Ohio Treasurer of State or by any         
    compensation for services provided in Ohio.    other electronic means prescribed  by the tax        Ohio IT 942 Quarterly Reconciliation of Income 
   A civilian spouse of a military service        commissioner. See Ohio Adm. Code 5703-7-19.          Tax Withheld: 
    member if the service member and spouse                                                              To reconcile the Ohio income tax withheld 
    have the same state of residency, and their    The    Gateway      can     be accessed       at       and payments for each of the 1st, 2 ,ndand 
    state of residency is  in another  state                                                              3 rdquarters. 
                                                   gateway.ohio.gov.   
    pursuant to the service member’s military                                                            Filed only   by employers with a partial-
    records.                                       Required Returns and Forms                             weekly filing frequency. 
                                                                                                         Due on the last day of the month following 
Employer’s Liability                               Ohio IT 4  Employee’s Withholding Exemption            the end of each calendar quarter. 
                                                   Certificate (employee form):                          
Each employer is liable for the Ohio income tax    Each employee must complete an Ohio IT 4,            Ohio IT 942 4 thQuarter/Annual Reconciliation of 
required  to be withheld. For purposes of          Employee’s Withholding Exemption Certificate,        Income Tax Withheld: 
assessment and collection, amounts required to     or the employer must withhold tax based on the        To reconcile the Ohio income tax withheld 
be withheld and paid to the Ohio Department of     employee claiming zero exemptions. The current         and payments for the 4 thquarter as well as 
Taxation are considered to be a tax  on the        IT 4  revised  12/2020,  is a combined document        the entire calendar year. 
                                                                                                        
employer.                                          that replaces the following forms:                     Filed   only  by employers with a partial-
                                                                                                         weekly filing frequency. 
                                                       IT 4 (Employee's Withholding  Exemption           Due January 31 stof the following tax year or 
The officer or  employee having control or             Certificate)                                       no later than 15 days after the 
                                                   
supervision of or charged with the responsibility      IT 4NR (Employee's Statement of Residency          discontinuation of the business. The tax year 
                                                       in a Reciprocity State)                            2022 deadline is January 31, 2023. 
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   Total tax withheld must equal W-2s/1099-Rs      amount of Ohio and school district income taxes    payment(s) made until the credit is consumed. 
    submitted.                                      that were withheld or required to be  withheld      
                                                    during the look-back period. The look-back period  If an overpayment or underpayment is identified 
Ohio  IT 3 Transmittal of  W-2 and 1099-R           is the 12-month period ending  June 30 of the      after the IT 941 or 4   Quarter/AnnualthIT 942 
Statements:                                         preceding calendar year.                           Reconciliation has been filed, the employer must 
   This form is required by employers with less                                                       file an amended IT 941 or 4 thQuarter/Annual IT  
    than 10  statements.  It  is  not available for Quarterly:                                         942 Reconciliation reflecting the overpayment or 
    filing on Gateway and must be submitted by      The estimated employer withholding remittance      balance due. 
    mail with corresponding W-2s and 1099-Rs.       amount  selected  during registration  or the       
    The  Ohio  IT  3  form  is available at         combined amount of Ohio and school district        Overpayments CANNOT be taken as a credit in a 
    http://www.tax.ohio.gov/forms    .              withholding taxes withheld during the look-back    subsequent year. 
                                                    period is $2,000 or less. The IT 501 and payment    
W-2 and 1099-R Submission                           are due by the last day of the month following the If an amended IT 941 or 4 thQuarter/Annual IT 942 
                                                    end of each calendar quarter.  Employers who       Reconciliation also involves issuing W-2Cs, an IT 3 
All employers are strongly encouraged to submit     registered on or after July 1 of the preceding     with the updated withholding  tax information 
their W-2/1099-R information electronically         calendar year will also remit quarterly, unless    and copies of the W-2Cs must be submitted by 
regardless of the number of W-2/1099-R forms        notified otherwise.                                mail  to the  employment  tax division using the 
issued.                                                                                                mailing address on the IT 3. 
                                                    Monthly:                                            
The option to submit W-2/1099-R information via     The estimated employer withholding remittance      Interest and Penalty  
CD has been  eliminated.  The only  acceptable      amount  selected  during registration  or the       
method to submit this information is through the    combined amount of Ohio and school district        Interest is calculated  from the return due  date 
Gateway by the due date of January 31st. The tax    withholding taxes withheld during the look-back    until the date the tax is paid. The interest rate for 
year 2022 deadline is January 31, 2023.             period  is  greater than $2,000 but less than      calendar year 2023 is 5%. 
                                                    $84,000. The IT 501 and payment are due within      
W-2/1099-R withholding must  equal  total tax       15 days following the end of each month.           Failure-to-File Penalty: 
withheld reported on the annual reconciliations                                                        If an employer fails  to file the Ohio employer 
(IT 941 or 4 thQuarter/Annual IT 942 and SD 141).   Partial-weekly:                                    withholding tax return by the due date, the 
                                                    The estimated employer withholding remittance      greater of $50 per month up to a maximum of 
Employers issuing 10 or more W-2s and 1099-Rs       amount  selected  during registration  or the      $500, or 5% per month up to a maximum of 50% 
combined:                                           combined amount of Ohio and school district        of the tax. 
W-2/1099-R information must be submitted            withholding taxes withheld during the look-back     
electronically through the W-2/1099 Upload          period is $84,000 or more. The payments must be    Failure-to-Pay Penalty: 
feature on the Gateway. No paper IT 3 is required   made by  electronic funds transfer (EFT) within    If payment of the tax is not received by the due 
to be filed. The W-2/1099 Upload  feature  will     three banking days from the end of each partial-   date, 10% of the delinquent payment plus double 
extract the  IT 3  data  from the W-2/1099-R        weekly period in which the employer issued its     the applicable interest charged. 
information submitted.                              payroll.                                            
                                                       EFT payments must  be made through the         Withheld but Not Remitted Penalty: 
The Simplified W-2 Upload format is available to        Ohio Treasurer of State.                       If an employer withholds the tax from its 
employers  issuing  500 or less  statements.           There are two partial-weekly withholding       employees but fails to remit the amounts to the 
Specifications and helpful content can be found at      periods each week. One consists of Saturday,   Department, 50% of the delinquent payment plus 
https://tax.ohio.gov/W2upload.                          Sunday, Monday, and Tuesday and the other      double the applicable interest. 
                                                        consists of Wednesday, Thursday,  and           
Employers issuing less than 10 W-2s and 1099-Rs         Friday.  The  partial-weekly  period is        Bad-Check Fee: 
combined:                                               determined based upon the day of the week      A fee of $50 for any payment dishonored by the 
Use  of  the W-2/1099 Upload feature  or the            that the employer issued its payroll;          bank. See ORC. 5747.15 
Simplified W-2 Upload format on the Gateway is          however, a  partial-weekly withholding 
                                                                                                                
strongly encouraged. If neither upload option is        period cannot extend from one calendar 
utilized, a paper IT 3 with corresponding W-2s and      year into the next.                            Recordkeeping 
1099-Rs must be submitted to the Department.           If the combined  Ohio  and school district      
                                                        income tax withheld by an employer during      Employers required to withhold Ohio income tax 
If a paper IT 3 is submitted, the Department may        a pay period reaches $100,000 or more,         must  maintain accurate records of all persons 
still require  electronic submission of the  W-         payment of the Ohio income tax portion of      from whom tax is collected for a period of at least 
2/1099-R information using one of the W-2/ 1099         this withheld amount (excluding school         four years from the due date. 
Upload  options  through the  Gateway when              district income taxes) is due by the first      
administering its compliance programs.                  banking day after the  date the employer       Records must include: 
                                                                                                           The amounts and dates of all compensation 
                                                        issued its payroll on which the combined            paid, and taxes withheld by pay period. 
Filing Frequency                                        withholding equals or exceeds $100,000.            The names, addresses, school district of 
                                                                                                            residence, principal county of employment, 
The initial  Ohio withholding filing frequency is   Overpayment and Underpayment                            and the social security  numbers of all 
                                                                                                            employees receiving compensation. 
determined  during the withholding account          Corrections                                         
registration  process.  The  Ohio employer                                                                 The periods of employment, including 
withholding filing and payment  frequencies are     If an overpayment is identified during the current      periods during which compensation is paid 
re-evaluated for each calendar year.                calendar year, the employer must make the               while absent due to sickness or injury. 
                                                    correction  by reducing the Ohio tax withheld          W-2s, 1099s, and IT 3 (if applicable). 
Filing frequency is determined by the combined      reported on the next Ohio IT 501(s) filed or EFT    

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Updating the Employer                                 address of residence and applies even if the           The tax year 2022  deadline  is January 31, 
Withholding Account Information                       employer conducts no business or operations in         2023. 
                                                      the school district. Failure to withhold will result  Total tax withheld must equal W-2s/1099-Rs 
 
                                                      in penalties and interest for any unpaid tax even      submitted. 
Name and address changes can be submitted on 
the  Business Account  Update Form (BA UF)            if the taxes were not withheld.                       
                                                       
available at http://www.tax.ohio.gov/forms.                                                                Filing Frequency 
                                                      School districts and the corresponding four-digit 
                                                      codes can be verified using The  Finder at            
                                                                                                           School district income tax withholding filing 
Closing the Employer Withholding                      http://www.tax.ohio.gov/finder or by contacting 
                                                                                                           frequency is either Quarterly or Monthly based 
Account                                               the applicable county auditor.                       on your Ohio Employer Withholding filing 
                                                       
                                                                                                           frequency.  
Business Closures:                                    Registration                                           
A business that withholds individual income 
                                                       
and/or school district  income  tax  from its         If  there is an  existing  employer withholding      Overpayment and Underpayment 
employee(s), and is closing,  may  complete the       account, a separate registration for school district Corrections 
Ohio Business Account Update Form (BA UF). An         withholding  is not  required. The employer           
account may also be closed electronically when        withholding  account number  is used for both        If an overpayment is identified for a specific 
filing  the final  IT 941  annual reconciliation      employer and school district withholding taxes.      school district during the current calendar year, 
through the Gateway. Check the box for Cancel                                                              the employer must make the  correction  by 
Withholding Account and enter the date of the                                                              reducing the school district withholding payment 
last day of compensation.                             How Much Tax to Withhold 
                                                                                                           for that same school district on the next SD 101(s) 
                                                                                                           until the credit is consumed. 
The employer also must file the Ohio  IT  941,        Traditional Tax Base Districts:  
                                                      Withhold using the same wage base & number of         
Annual Reconciliation of Income Tax Withheld, no      exemptions  used for employer  withholding and       If an overpayment remains at the end of the 
later than 15 days after the discontinuation of       the school district rate tables located at           current calendar year, the employer must claim 
business through the Gateway. EFT filers must file    https://tax.ohio.gov/business/resources/employ       the overpayment on the annual reconciliation as 
the Ohio IT 942 4 thQuarter/Annual Reconciliation     er-withholding.                                      a refund. 
of Income Tax Withheld through the Gateway.                                                                 
                                                      Earned Income Tax Base Districts:                    If an overpayment or underpayment is identified 
The employer must submit  all W-2/1099-R              Withhold at a flat rate using the school district    after the SD 141 reconciliation has been filed, the 
information through the W-2/1099 Upload               withholding   rate         tables located       at   employer must file an amended SD 141 
feature or the Simplified W-2 format through the      https://tax.ohio.gov/business/resources/employ       reconciliation reflecting  the overpayment or 
Gateway no later than 15 days from the last date      er-withholding with no reduction or adjustment       balance due. 
of payroll.                                           for personal exemptions.                              
                                                                                                           Overpayments CANNOT be taken as a credit in a 
Changes in Ownership/Entity Type:                                                                          subsequent year. 
If a change in ownership or in the business entity    Required Returns and Forms 
type (such as changing from a sole proprietorship                                                           
to a corporation) occurs and a new FEIN is issued     Ohio IT 4  Employee’s Withholding Exemption          If an amended SD 141 also involves issuing W-2Cs, 
by the IRS,  a  final IT 941 or IT 942  annual        Certificate (employee form):                         an IT 3 with the updated school district/employer 
reconciliation must be filed for the current Ohio     Every employer liable for Ohio  withholding tax      withholding tax information and copies of the W-
withholding account number and the account            must keep on file the Ohio IT 4, Employee’s          2Cs  should  be  submitted by mail to the 
must be closed.  A new employer withholding           Withholding Exemption Certificate, for each          employment tax division using the mailing 
account is required for the newly issued FEIN.        employee. This provides a record of the  school      address on the IT 3. 
                                                      district name and number in which the employee        
Mergers:                                              resides. Employees must update the Ohio IT 4         Interest and Penalty  
If a merger has taken place, the non-surviving        whenever    previous       information becomes        
entity must file a final Ohio IT 941 or IT 942 annual insufficient or incorrect.                           Interest and penalty  charges for school district 
reconciliation and notify us of the merger  by                                                             withholding are the same as employer 
completing a Business Account Update Form (BA         Ohio SD 101 Return for School District Income        withholding. 
UF) that can be found on our website  at              Tax Withheld:                                         
http://www.tax.ohio.gov/forms.                         To report and pay Ohio school district 
                                                                                                           Need Assistance? 
                                                        income tax withheld for the period. 
                                                       Not required if there is no Ohio school             
                                                                                                           Additional  resources, including information 
 SCHOOL DISTRICT WITHHOLDING                            district income tax liability for the period. 
                                                                                                          releases,  FAQs, and archived  Tax Alerts  are 
                                                        The filing of all SD 101s does not complete 
                                                                                                           available at http://www.tax.ohio.gov. 
                                                        the filing requirement for the tax year. The 
                                                                                                            
Who Must Withhold                                       annual reconciliation is required. See below. 
                                                                                                           Taxpayers may also e-mail using the Contact Us 
                                                       
                                                                                                           link at https://tax.ohio.gov/help-center or call at 
Ohio law requires employers to collect the school     Ohio SD 141  Annual Reconciliation of School 
                                                                                                           1-888-405-4039 (TTY/TDD: 1-800-750-0750). 
district  of residence for each employee  by          District Income Tax Withheld: 
                                                                                                            
providing the Ohio form IT 4.                          To reconcile the school district income tax        Any correspondence  must include your contact 
                                                        withheld and payments remitted by school           information (phone, address, email, etc.), 
Employers  are required  to withhold school             district for the entire calendar year.             withholding account number, and the last four (4) 
district income tax from compensation for any          Employers are required to file by January 31  st   digits of the employer’s FEIN.
employee who resides in a taxing school district.       of the following tax year or no later than 15 
This requirement is  based on an employee's             days after discontinuation of the business. 
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