SIDNEY — Sidney employers are required to withhold Sidney income tax from their employees. Employers are then required to remit amounts withheld to the city within a designated time or pay a penalty, city officials said.
House Bill 5, recently approved by the state Legislature, changed when employers must remit taxes withheld from employees, and increased the penalty for late payment. Beginning Jan. 1, 2016, employers must use the following payment schedule:
• Semi-monthly — If withholdings are greater than $11,999 per year ($1,000 per month), then electronic payment, either by the Ohio Business Gateway or by ACH, must be made by the third banking day after the 15th of the month and the third banking day after the end of the month.
• Monthly — If withholdings are greater than $2,399 a year, but less than $12,000, ($200 to $1,000 per month), payment is to be received by the city no later than the 15th of the month following the payroll withholding.
• Quarterly — Those employers withholding less than $2,400 per year ($200 per month) may continue to make quarterly payments to the city, due on the 15th of the month following the quarter-end.
Pursuant to state law, the penalty for late payment of withholding tax is now 50 percent of the tax due. The city of Sidney is encouraging all withholders to make note of the new payment dates to avoid the 50 percent penalty. These dates and the associated penalty were established by the Ohio Legislature in an attempt to make all municipalities in Ohio uniform.
Any employer with questions is encouraged to contact Sidney’s income tax administrator, Jeffery Wical, at 937-498-8111 or visit the city website at www.sidneyoh.com. (See Income Tax Department page)