Municipal Income Tax Withholding Returns to “General Rule”

Effective January 1, 2022, municipal income tax withholding returned to the Pre-COVID-19 emergency declaration "General Rule". Prior to January 1, 2022, employers were to follow the governor's emergency declaration "temporary rule" in which they withheld based on their regular place of employment or "principal place of work". Under the "General Rule", employers must withhold municipal income taxes based on where an employee's work is actually performed. While this rule was in effect before COVID-19, there could be significant changes to employer withholdings due to new hybrid or remote work arrangements.

Additionally, in July 2021, House Bill 110 was signed into law. This Bill provides for employee refunds back to January 1, 2021, if taxes were withheld to an employee's principal place of work and the employee neither lived nor physically performed services in the withheld municipality. This could be advantageous for employees to consider if they worked from home and their homes were in a lower taxing municipality or a no-tax municipality or township.

As with most tax legislation, certain exceptions to the General Rules apply. If you have questions on these changes or exceptions, don't hesitate to contact Hall, Kistler and Company at (330) 453-7633, info@hallkistler.com or www.www.hallkistler.com.

Categories: Tax
Tags:

Learn more about this post's author: Seth Turner

My Credentials: CPA, CVA

A Little Teaser: Seth is a manager at Hall, Kistler with more than 15 years of experience serving our clients. He helps manage financial statement audits, reviews, and compilations, as well as tax returns for individual and corporate clients. Seth leads the firm's…

Learn More About Me!
Partner with dedicated, expert accounting advisors.
Request A Free Consultation

More HK News

BKR International logo.
Ohio Oil & Gas Association logo.
NACVA logo.
The Ohio Manufacturers' Association logo.
AICPA logo.
Team neo Cleveland+ logo.
close

Search HK

Close
Title: 9 Questions you should be asking about business valuations

9 Questions You Should Be Asking About Business Valuations

Download our free white paper to get insights on business valuations from a licensed CVA.

This Site Uses Cookies to Improve Your Experience

The use of cookies is required to deliver certain portions of our website, such as 3rd party educational resources and content. We also use cookies to track your basic website usage, which enables us to improve how our website meets your needs. If you decline, some areas of our site may be unavailable. Read our privacy policy for complete details.

Read Our Privacy Policy Agree To Cookies Deny Cookies