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CITY OF TOLEDO
DIVISION OF TAXATION
1 GOVERNMENT CENTER, STE 2070
TOLEDO, OH 43604
2024
EMPLOYER’S MONTHLY RETURN OF TAX WITHHELD BOOKLET
Who Must File: Each employer within the City of Toledo, who employs one or more persons is required to withhold the
tax of 2.5% (effective 1/1/2021) from all compensation paid employees at the time such compensation is paid and to
remit such tax to the Commissioner of Taxation. Employers are required to withhold only on “qualifying wages” which
are wages as defined in the Internal Revenue Code Section 3121(a), generally the Medicare Wage Box of the W-2.
How to File: You may mail a paper copy of your W-3 with the supporting W-2s or you may upload to our website using
the EFW2 format in a .txt file. We no longer accept other forms of media and, as such, they will be returned.
What is Taxable to Toledo: Salaries, Wages, Commissions; Tips; SUB Pay; Ordinary Income Portion of Stock Options or
Employee Stock Purchase Plans; Employee Contributions to Tax Sheltered Annuities; Ordinary Income Portion of Lump-
Sum Distributions; Working Condition Fringe Benefits to the extent included in W-2 Forms; Premiums on Group Term
Insurance in Excess of $50K.
WITHHOLDING PROVISIONS:
As mandated by the State of Ohio Revised Code Section 718.03 the following filing frequencies and due dates are
established:
Electronic Remittance Requirement: If the employer, agent of the employer, or other payer is required to
make payments electronically for the purpose of paying federal taxes withheld on payments for employees under
Section 6302 of the Internal Revenue Code, 26 C.F.R. 31.6302.1, or any other federal statute or regulation, the payments
and subsequent payments, based on the Commissioner of Taxation’s determination, shall be required to be made by
electronic funds transfer to the Commissioner of Taxation of all taxes withheld on behalf of Toledo. If the payment is
required to be made by electronic funds transfer, the payment is considered to be made when the payment is credited
to an account designated by the Commissioner of Taxation for the receipt of tax payments.
Monthly Withholding: Taxes required to be deducted and withheld shall be remitted monthly to the
Commissioner of Taxation. If the total taxes deducted and withheld or required to be deducted and withheld by the
employer, agent, or another payer on behalf of the City of Toledo in the preceding calendar year exceeded two
thousand, three hundred ninety-nine dollars ($2,399), or if the total amount of taxes deducted and withheld or required
to be deducted and withheld on behalf of the City of Toledo in any month of the preceding calendar quarter exceeded
two hundred dollars ($200). Payment shall be made so that the payment is postmarked no later than 15 days after the
last day of each month except for those required to electronically file (see TMC 1905.06(B)).
Quarterly Withholding: Any employer, agent of the employer, or another payer not required to make monthly
payments of taxes required to be deducted and withheld shall make quarterly payments to the Commissioner of
Taxation, City of Toledo. Payment shall be made so that the payment is postmarked not later than 30 days following
the end of each calendar quarter.
Annual Reconciliation: The Annual Reconciliation Form W-3 and corresponding W-2’s are due on the last day of
February following the preceding calendar year. Note: The W-2 forms must now include the names/amounts of all
other cities for which tax was withheld for the employee. (See the addenda on our website for electronically filing your
W-2’s).
PENALTY AND INTEREST:
Effective January 1, 2016, and as mandated by the State of Ohio Revised Code Section 718.03 the following penalties and
interest rules are established:
Interest: The interest in 2024 is based on the Federal Short Term Rate as reported in the preceding July,
rounded to the nearest whole percent plus 5%. The Federal Short Term Rate in July of 2023 was 4.8%, thus rounded up
to 5% + 5%. This translates into a rate of 10% annually or .8333% monthly for the calendar year 2024.
Penalty: The penalty in 2024 is 50% of the amount not timely paid (a one-time charge). A penalty of $25 for
failure to file timely (any withholding monthly, quarterly or W-3 for each month or fraction thereof that the return
remains unfiled per period).
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