The Ohio tax department has released revised income tax withholding tables that are effective with wages paid on and after August 1, 2015. (Email notification, Ohio Department of Taxation, July 31, 2015.) Ohio’s FY 2016/2017 budget bill (HB 64), which was signed into law on June 30, 2015, provides for a 3.1% reduction in the withholding rates previously in effect for 2014. Effective retroactively to January 1, 2015, the highest tax rate of 5.333% is cut to 4.997% and the lowest tax rate of 0.528% is reduced to 0.495%. However, employers are not required to make retroactive withholding tax adjustments for payroll periods. The new tables were released July 31 and are to be implemented by Employers as soon as possible.

 

Web Pay Updates

 

Updates to the tax Rates used in Web Pay will be complete by August 21, 2015. Due to the late timing of the announcement from the OH Department of Revenue there will be some delay in the update of the tax withholding tables for OH. Our Government Relations Team has spoken with the OH Department of Taxation and has been advised that although the tax tables have been updated and made available for Use effective August 1, 2015, Employers will not be penalized for delays in updating withholding. Employees will receive refunds for any over withheld amounts when filing their 2015 OH Individual Income Tax Returns.

 

Supplemental Withholding

 

We have also confirmed that there will be no change to the current Supplemental Withholding Rate for the remainder of 2015.

 

*Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager. This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.