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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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