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You check the school district box on form IT 1 or return form IT 1R, which is included in the Ohio withholding coupon booklet and as a loose form in the school district withholding packet.
2. How do I find out what school districts my employees live in?
You must canvass to find out what districts the current employees live in, and after that may rely on new employees completing an IT 4 exemption form and current employees updating their exemption form. (You do not use the federal W-4 exemption form for Ohio or school district purposes.)
3. What if my employee does not know what school district he lives in?
The employee can go to the Ohio Department of Taxation Web site to locate an online resource called The Finder . Once someone provides their street address, The Finder can locate their school district. This resource is available on our Web site at The Finder. The employee can also contact their county board of elections or county auditor. By giving their street address, either agency should be able to identify their school district of residence.
4. We only have one employee living in a taxing school district. Can that employee make estimated payments to cover the tax?
No. If you are conducting business in Ohio and employing residents of taxing school districts, you must withhold the school district tax.
5. Can I withhold a flat 1/2 percent for my employee in the Reynoldsburg school district just like a local tax?
No. You must use the taxable wage base (not gross wages) and then allow for Ohio exemptions before arriving at the school district withholding tax. You may determine the tax from the Ohio school district income tax withholding tables or from the computer formula available from any of the offices on the back of the SD 101 booklet.
6. Where do I place the school district information on the W-2 and how do I identify it?
Use any available area (possibly Box 18) on the W-2. Identify the withholding amount and the school district by its four-digit number.
7. Do I submit my school district W-2's with my SD 141?
No. You submit your school district withholding information on the state copy of your W-2 (or IT 2) sent in with your IT 3 transmittal. List your school district withholding on line 4 of the IT 3.
8. How do I report my school district withholding on magnetic tape?
Please see the instructions for magnetic media specifications on our Employer Withholding Tax index page or contact the Information Services Division at (614) 752-1972.
9. I received a school district withholding booklet (preprinted with labels). I don't have employees affected by this tax. What do I do?
Tear out an SD 101 or SD 141 from the booklet, write your explanation on the front, and send it to the address at the top of the form. We will verify no withholding and then inactivate your school district account. To reactivate your school district account remit your current liability on an SD 101.
10. An employee told me in June that he lives in a taxing district. Am I required to go back to January and withhold up to the current payroll?
Technically, you should go back to January. However, if this would be a burden for the employee and the employee agrees, you may start withholding from this point. Be sure to tell the employee that he is responsible for any tax not withheld when he files the SD 100 by next April 15.
11. Can I include my school district withholding tax with my Ohio withholding tax on my IT 501 coupon?
No. You must remit your school district tax with the SD 101 coupon.
12. Do I need to withhold school district tax for the 401(k) or cafeteria plan?
You use the same taxable wage base that you use for Ohio withholding and then allow for Ohio exemptions from the IT 4.
13. I don't have to withhold Ohio tax from my domestic employee, but I am willing to withhold school district tax. How do I register?
You don't, unless you are registering to withhold for Ohio. Your employee may need to file school district estimated tax.
14. My school district withholding for this month is only $1.95. Can I file and remit this quarterly?
Your combined Ohio and school district liability determines your due date. If your combined liability exceeds $2,000 in the twelve-month period ending on the thirtieth day of June of the preceding calendar year, you must file and remit both monthly. Partial weekly filers and electronic funds transfer (EFT) filers file and remit school district tax monthly. Others file quarterly.
15. Our software won't allow us to withhold school district tax. Can the employee take care of it himself?
If you are conducting business in Ohio, you are required to withhold the school district tax from affected employees. You should withhold the tax manually if your software program doesn't allow for the withholding.
16. What are the penalties for not withholding or remitting the school district tax?
If an employer does not file a required return by the due date, the penalty may be $50 per month up to $500 or 5 percent per month up to 50 percent of the tax, whichever is greater. If an employer fails to pay any tax owed, the penalty may be 10 percent of the delinquent payment plus twice the interest charged. If the employer withholds the tax and fails to remit it, the penalty may be 50 percent of the delinquent payment.
17. When do I need to register as a school district withholding agent?
You need to register as soon as you discover you have employees living in a taxing school district. See "General Information" and "E-Registration" on our Employer Withholding Tax index page for instructions on how to register.
