Tuesday, August 9, 2016

Ohio Requires School District Names, ID Numbers on W-2

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PNN: OH School ID - W2

When 2016 Forms W-2 are issued in January 2017 in Ohio, payroll professionals will need to report new information. The Ohio Department of Taxation (DOT) is requiring payroll professionals to include the four-digit school district number, along with the school district name, in Box 20 (Locality name) of Form W-2, Wage and Tax Statement. This will only apply when reporting school district withholding. Many localities in Ohio have both a municipal income tax and a school district income tax.

Helping Employees Avoid Mistakes
The DOT has found that thousands of Forms W-2 provided by employers each year lists a city name twice with two different withholding amounts—one for municipal income tax withheld and one for school district income tax withheld. This has caused some employees to mistakenly claim the wrong withholding amount on their tax return or to add both withholding amounts together when filing their municipal and/or school district income tax returns. The DOT is therefore asking payroll professionals to help employees avoid these errors by clearly distinguishing between municipal and school district withholding reported on the Form W-2 by including the school district identification number and name.

Have Questions?
More information is available on the DOT’s website, including a sample of a completed Form W-2, Boxes 16 to 20. Read more about this in PayState Update, Issue 15.