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Rev. 5/16

2016 School District Income Tax Withholding Instructions
Ohio Withholding Tax Returns: Effective Jan. 1, 2015, in school district tax on all federal wage base compensation paid
accordance with Ohio Administrative Code rule 5703-7-19, to employees residing in these school districts. These earned
employers are required to ﬁ le state and school district income tax income only tax base school districts are included on the en-
withholding returns and make payment of the withheld taxes through closed listing.
the Ohio Business Gateway (OBG) at business.ohio.gov.
2. Requirement to File School District Withholding Returns
Federal Privacy Act Notice Employers are required to ﬁ le state and school district income
Because we require you to provide us with a Social Security num- tax withholding returns and make payment of the withheld taxes
ber, the Federal Privacy Act of 1974 requires us to inform you that
providing us with your Social Security number is mandatory. Ohio through the OBG.
Revised Code sections 5703.05, 5703.057 and 5747.08 authorize a. SD 101 – Employers must pay the withheld tax with SD 101,
us to request this information. We need your Social Security number Employer’s Payment of School District Income Tax Withheld,
in order to administer this tax. usually on the same due date as Ohio IT 501, Employer’s
Payment of Ohio Income Tax Withheld.
Ohio Business Gateway
The OBG simpliﬁ es tax reporting and payment for businesses. Now b. SD 141 – Employers must remit SD 141, School District
your business can ﬁ le and pay Ohio and school district employer’s Employer’s Annual Reconciliation of Tax Withheld.
withholding tax, sales and use tax, unemployment tax and Work-
ers’ Compensation premiums all at one time. Just go to tax.ohio. 3. Filing Frequency
gov, click on Ohio Business Gateway, and you can start ﬁ ling your All employers are required to ﬁ le either monthly or quarterly.
returns online the same day. a. Quarterly payments are due if the combined Ohio and school
district income tax withholding liability does not exceed
Registration is simple. Just have your account numbers handy to $2,000 during the 12-month period ending on June 30th of
start your registration process. You will need your federal employer the preceding calendar year.
ID number, the legal name of your company and your e-mail ad-
dress. You will be asked to designate a contact person and to list b. Monthly payments are due if the combined Ohio and school
the name and job title of the person who will be reporting your tax district income tax withholding liability exceeds $2,000 during
information. You will also be asked for a user name. Once you’re the 12-month period ending on June 30th of the preceding
registered, you can start ﬁ ling your returns immediately. On subse-
quent visits to the OBG, you can just log in by entering your user calendar year.
name and password. Note: School district income tax withholding is not required to
Credit Card Information – Pay Your Taxes by Credit Card be paid on a partial weekly basis per R.C. section 5747.07.
You can use your Discover, MasterCard, VISA or American Express
card to pay your school district income tax liability. Credit card pay- 4. Completing the SD 101 Payment Form
ments may be made by telephone by calling 1-800-2PAY-TAX or a. In the tax due column, ﬁ ll in the amount of tax due for each
by visiting www.ofﬁ cialpayments.com and clicking on the State school district during the period. Be sure to include tax due
Payments Center link. for all applicable school districts.
There is a convenience fee charged for this service. This fee is paid Note: Employers who have been approved under the opt out
directly to Ofﬁ cial Payments Corporation based on the amount of provision to ﬁ le paper returns must include the name, school
your tax payment. district number and amount due on SD 101. If you are not
using a preprinted form, ﬁ ll in each school district name and
When will my payment be posted? Your payment will be effective number and enter the amount of tax due on the line next to
the date you charge it. the school district name(s).
What happens if I change my mind? If you pay your tax liability
by credit card and subsequently reverse the credit card transaction, b. Enter the total amount of taxes due for all school districts on the
you may be subject to penalties, interest and other fees imposed by Total Tax Due line. The SD 101 must be ﬁ led electronically and
the Ohio Department of Taxation for nonpayment or late payment payment made through OBG unless you have been approved
of your tax liability. to ﬁ le/pay by paper.
Instructions for Employers If you have been approved to ﬁ le/pay by paper, send your SD
1. Requirement to Withhold School District Income Tax 101 and payment to Ohio Department of Taxation, P.O. Box
Pursuant to Ohio Revised Code (R.C.) sections 5747.06 and 182388, Columbus, OH 43218-2388.
5747.07, all employers are required to withhold and remit school
c. During the calendar year, you may adjust for overpayments
district income tax from employees who reside in a school district
or underpayments by reducing or increasing the tax due for
that has enacted the school district income tax. Employers should
the same district on a subsequent SD 101 ﬁ ling. Do not ﬁ le
use the same wage base as they use for Ohio withholding less
an amended SD 101 return for any period.
the number of exemptions claimed on Ohio IT 4, Employee’s
Withholding Exemption Certiﬁ cate (which they keep on ﬁ le). Regarding overpayments:

Exception: Several school districts have enacted an alterna-  Overpayments made for a district can be applied to reduce
tive earned income only tax base. Employers cannot reduce the tax due for the same district in a subsequent period, but
the wage base for personal exemptions for employees residing cannot be used to reduce the tax due for any other district.
in these school districts. Rather, employers must withhold the
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 Do not show any negative ﬁ gures. If you show a negative
amount for a district, you are in effect erroneously applying the d. If line 2 is GREATER than line 1, subtract line 1 from line 2
overpayment toward the tax that is due for another district. and enter the overpayment of school district income tax on
line 4.
 Continue to apply your overpayment for a district toward
the current tax due for the district, until your overpayment is e. Do mailnotpaper copies of the wage and tax statements,
used up. On SD 101, only report amounts that are currently W-2 with SD 141. Submit wage and tax statements only on
due. Do not report any tax that is not owed as a result of an acceptable magnetic media (e.g., CD-ROM) and send with
overpayment made for the district in a prior period. your completed Ohio IT 3, Ohio Transmittal of Wage and Tax
Statement.
 You may keep track of these adjustments by using the School
District Withholding Adjustments Worksheet. 6. Interest on Unpaid Withheld Tax
School district income tax withheld (or required to be withheld
 If, during the calendar year, you overpay the tax due for a for each withholding period) and remaining unpaid is subject to
district on SD 101 and you do not have any tax due for that the applicable interest rate per year (3% for 2016).
same district on subsequent periods during the calendar year,
at year-end you can apply on SD 141 your overpayment to 7. Penalties on Unpaid/Late-Paid Withheld Tax
another school district or claim a refund of your overpayment. a. If an employer fails to pay the tax deducted and withheld from
employees’ compensation by the due date, a nonpayment
5. Completing the SD 141, Employers Annual Reconciliation penalty of 50% may be assessed on the tax due, unless the
of School District Income Tax Withheld employer shows that the failure was for reasonable cause
For each school district for which you withheld tax, you must list and not willful neglect.
the following: the school district name, school district number,
the amount of tax withheld, the amount paid during the year and b. If an employer ﬁ les SD 101 and/or SD 141 after the due date,
the underpayment or overpayment. a late ﬁ ling penalty may be assessed, which is the greater of
$50 per month up to a maximum of $500, or 5% per month
If Filing By Paper: up to a maximum of 50% of the tax due that is required to be
a. you must ﬁ rst complete all columns shown on the lower half of shown on the report.
SD 141. List each district separately. Indicate overpayment
using parentheses. 8. Employee Wage and Tax Statement
b. Bring the total of columns C and D forward and enter these Employers must furnish a W-2 to the employee that identiﬁ es
amounts on lines 1 and 2 of SD 141. both the amount of school district income tax withheld and the
school district (by its four-digit number). Use boxes 19 and 20
c. If line 2 is LESS than line 1, subtract line 2 from line 1 and on the W-2 or any available area to show this information.
enter the balance of school district income tax due (amount
you owe) on line 3. Make your check payable to School Dis- Caution: Several Ohio school districts have the same name. Be
trict Income Tax. sure to verify the affected school district by county before withhold-
ing for employees.

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Common School District Withholding Questions
Am I required to withhold school district income tax? the taxable wage base (not gross wages) and then allow for Ohio
Yes, if you... exemptions to arrive at the amount subject to school district income
 employ any individual who is a resident of a school district that tax withholding. You may either determine the tax from the Ohio
has enacted the school district income tax. Place of employment school district income tax withholding tables or from the computer
in Ohio does not matter; nor does an out-of-state payroll ofﬁ ce formula on page 4 of this booklet.
exempt the employer from withholding the taxes. Age of the em-
ployee also does not matter. The only factor is the employee’s Must I withhold if I only have one employee affected?
residence in a school district that has enacted an income tax. Yes. If you are conducting business in Ohio and are employing one
No, if you... or more residents of affected school districts, you must withhold
 do not employ in Ohio anyone who is a resident of a school the school district income tax, no matter how many employees are
district with an income tax; affected or how little tax is withheld.
 employ any Ohioans in a reciprocity state (Michigan, Pennsylva- Should I withhold the school district tax for the 401(k) or
nia, West Virginia, Kentucky or Indiana), and they are residents cafeteria plan?
of an affected school district. You should use the same taxable wage base that you use for Ohio
How can my employees ﬁ nd out where they reside? withholding and then, unless the employee resides in an earned
They may contact their county auditor or use The Finder at tax. income tax base school district, allow for the same Ohio exemptions
ohio.gov to verify their school district of residence. claimed on the Ohio IT 4.
How do I register as a school district withholding agent? How do I show school district withholding tax on my em-
If you have not registered as an Ohio employer, you can register ployee’s W-2?
for both Ohio and school district withholding on the Ohio Business Use boxes 19 and 20 on the W-2 or use the Ohio IT 2, which has
Gateway (OBG) or check the appropriate box on Ohio form IT 1, speciﬁ c boxes for school district withholding tax, and identify the
Application for Registration as an Ohio Withholding Agent, and send school district by its four-digit number.
it in. If you are already registered and have an Ohio withholding Transmittal of wage and tax statements, Ohio IT 3 – All employers
account number, call our Taxpayer Services Division at 1-888-405- required to withhold must ﬁ le with the Ohio Department of Taxation
4089 to activate your Ohio school district withholding account. by the last day of February of the succeeding calendar year a copy
Can I include my school district tax payment with my Ohio of the Ohio IT 3. Employers are no longer required to send us paper
form IT 501? copies of the Ohio IT 2 or the federal W-2. Send your state W-2
No. You must remit your school district tax with the SD 101. information to us on magnetic media using an approved electronic
format. The electronic format is available on the department’s Web
How do I ﬁ nd out what school district each employee lives site at tax.ohio.gov.
in?
As an employer, you should have each employee complete Ohio I have no employees who reside in a school district with an
form IT 4, Employee’s Withholding Exemption Certiﬁ cate. This form income tax and I registered in error. What do I do?
will list the employee’s school district residence, and the employee Write your explanation on the front of the SD 101 and send it to
may update this form whenever there is a change of residence. the address at the top of the form. We will inactivate your school
You can obtain the form by visiting our Web site at tax.ohio.gov. district account. To reactivate your account, remit any school district
withholding on the SD 101.
Do I ﬁ le and pay my school district withholding at the same
time as my Ohio income tax withholding? I no longer have any employees who reside in a school
You must use the combined Ohio and school district income tax with- district with an income tax. How do I inactivate my school
holding amounts to determine your ﬁ ling frequency. If your combined district withholding account?
liability exceeds $2,000 for the 12-month period ending on June 30th When you ﬁ le your annual reconciliation, SD 141, write on the front
of the preceding calendar year, you must remit your school district that you no longer have any employees who reside in a school
withholding monthly. If your combined liability does not exceed $2,000 district with an income tax in effect. We will inactivate your school
for the same period, you may remit both taxes quarterly. Partial-weekly district withholding account. If during the year you have remitted
(EFT required) withholders remit school district tax monthly. for any employees who reside in a school district with an income
tax, you must ﬁ le an SD 141 at the end of the year and request
How do I remit my SD 101 and payment? inactivation on the front of that form.
The SD 101 must be ﬁ led electronically and payment made through
OBG unless you have been approved to ﬁ le/pay by paper. Are there penalties for not withholding or remitting the
school district tax?
If you have been approved to ﬁ le/pay by paper, send your SD 101 If an employer knows that an employee is subject to the school
and payment to Ohio Department of Taxation, P.O. Box 182388, district tax but fails to withhold from the employee’s compensation
Columbus, OH 43218-2388. the appropriate amount of tax, the employer is liable for penalties
and interest. If your return is ﬁ led late, a late ﬁ ling penalty may be
My software does not allow for a second local tax. What do I assessed, which is the greater of $50 per month up to $500, or 5%
do? per month up to 50% of the tax due that is required to be shown on
You must withhold the school district income tax from each affected the report. If the tax was not withheld, the penalty may be twice the
employee. You should withhold the tax manually if your software interest charged plus 10% of the delinquent tax payment. If your
program does not allow for the school district withholding. payment is late, you may be assessed a late payment penalty of
up to 50% of the delinquent tax payment. The statutory interest
Can I withhold a ﬂ at percentage from my employee? rate for 2016 is 3%.
Yes, but only if the employee resides in an earned income tax
base school district. For all of the other employees, you must use
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Computer Formula for School District Income Tax Withholding

Caution: See Exception below.

Daily payroll period: Federal wage base minus $2.50 for each exemption times the
school district tax rate

Weekly payroll period: Federal wage base minus $12.50 for each exemption times the
school district tax rate

Biweekly payroll period: Federal wage base minus $25 for each exemption times the
school district tax rate

Semi-monthly payroll period: Federal wage base minus $27.08 for each exemption times the
school district tax rate

Monthly payroll period: Federal wage base minus $54.17 for each exemption times the
school district tax rate

Annual payroll period: Federal wage base minus $650 for each exemption times the
school district tax rate

Exception: Several school districts have enacted an alternative earned income only tax base. Residents of
these school districts are not entitled to the exemption adjustment. Employers must withhold the school
district tax on all federal wage base compensation paid to employees residing in these school districts.
These earned income only tax base school districts are included on the enclosed listing.

IT 4
Employee’s Withholding Exemption Certiﬁ cate Rev. 5/07

Print full name Social Security number
Home address and ZIP code
Public school district of residence School district no.
(See The Finder at tax.ohio.gov.)
1. Personal exemption for yourself, enter “1” if claimed ..............................................................................................................
2. If married, personal exemption for your spouse if not separately claimed (enter “1” if claimed) .............................................
3. Exemptions for dependents .....................................................................................................................................................
4. Add the exemptions that you have claimed above and enter total ..........................................................................................
5. Additional withholding per pay period under agreement with employer .............................................................................. $
Under the penalties of perjury, I certify that the number of exemptions claimed on this certiﬁ cate does not exceed the number to which I am entitled.

Signature Date

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