Beginning with forms filed for tax year 2016, the Ohio Department of Taxation will require W2 forms to include the School District ID number in addition to the name.
Since some localities in Ohio have both a City Income Tax as well as a School District Income Tax, many W2 statements provided by employers list a city name twice with two different withholding amounts, one for City and one for School District Withholding.
The Ohio Department of Taxation has found that some individual taxpayers mistakenly claim the wrong amount of withholding on their annual return.
To assist individual taxpayers from making these errors, the ODT is asking Employers and Payroll Service Providers to make and obvious segregation on W2 forms that are issued to Employees with Ohio School district Income Tax Withheld. Starting with the 2016 Tax Year (forms filed in January 2017), the ODT has asked that the School District number be listed along with the name to alleviate further confusion.
Below is an example of from the Ohio Department of Taxation:
For further details, visit tax.ohio.gov
Paylocity already produces W2s for Employees with Ohio School District where applicable so you can rest assured that your 2016 W2s will be compliant for Employees in Ohio.
Our Government Relations team has been monitoring changes to W2 reporting requirements at the Federal, State and Local level including the accelerated deadlines for 2016 and beyond. We will continue to provide updates throughout the year as the year-end season approaches.
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.