Ohio State and Local Tax Updates October 2020

Ohio’s minimum wage increase set to take effect in January 2021

Ohio’s new 10 cent minimum wage increase takes effect on Jan. 1, 2021. The OH Dept. of Commerce has announced that the minimum wage rate will increase from $8.70 per hour to $8.80 per hour. The cash minimum wage rate for tipped employees will increase from $4.35 per hour to $4.40 per hour. Employees working for employers whose annual gross sales are less than $323,000 (less than $319,000 in 2020), and employees under the age of 16, only need to be paid the federal minimum wage rate of $7.25 per hour.

Two Ohio villages to be subjected to 1% local income tax

Attention, residents of Timberlake and West Salem villages: The Ohio Regional Income Tax Agency has announced, that as of Oct. 1, it’s begun to administer a 1% local income tax for both villages.

Ohio’s municipal net profit tax-filing deadline is nearing.

A reminder: Ohio’s municipal net profit tax-filing deadline is nearing. The OH Dept. of Taxation, Business Tax Div., reminds taxpayers that June fiscal year-end returns are due Oct. 15. Taxpayers are required to file and pay the MNPT electronically via the Ohio Business Gateway or through the state’s Modernized e-File system.

Ohio pursues taxpayers who haven’t filed School Dist Income Tax Return for 2016-2018

The Ohio Dept. of Taxation is pursuing taxpayers who haven’t filed a School Dist. Income Tax Return for tax years 2016, 2017, or 2018. Failure to respond to the notice will result in the issuance of an assessment and further collection action that may subject taxpayers to 1) a late filing penalty of $50 dollars for each month the return is filed late, up to a maximum of $500 dollars (even if the late filed return results in a refund); 2) interest imposed on any unpaid tax due (the interest rate is 3% for 2016, 4% for 2017-2018, and 5% for 2019-2020); or 3) a late payment penalty equal to double the interest amount owed. Brady Ware can help.

 

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