Ohio Revised Code
Chapter 5747 | Income Tax
Section 5747.07 | Employers to File Return and Pay Withholding.

Effective: March 24, 2021
Latest Legislation: Senate Bill 201 - 133rd General Assembly
(A) As used in this section:
(1) "Partial weekly withholding period" means a period during which an employer directly, indirectly, or constructively pays compensation to, or credits compensation to the benefit of, an employee, and that consists of a consecutive Saturday, Sunday, Monday, and Tuesday or a consecutive Wednesday, Thursday, and Friday. There are two partial weekly withholding periods each week, except that a partial weekly withholding period cannot extend from one calendar year into the next calendar year; if the first day of January falls on a day other than Saturday or Wednesday, the partial weekly withholding period ends on the thirty-first day of December and there are three partial weekly withholding periods during that week.
(2) "Undeposited taxes" means the taxes an employer is required to deduct and withhold from an employee's compensation pursuant to section 5747.06 of the Revised Code that have not been remitted to the tax commissioner pursuant to this section or to the treasurer of state pursuant to section 5747.072 of the Revised Code.
(3) A "week" begins on Saturday and concludes at the end of the following Friday.
(4) "Professional employer organization," "professional employer organization agreement," and "professional employer organization reporting entity" have the same meanings as in section 4125.01 of the Revised Code.
(5) "Alternate employer organization" and "alternate employer organization agreement" have the same meanings as in section 4133.01 of the Revised Code.
(6) "Client employer" has the same meaning as in section 4125.01 of the Revised Code in the context of a professional employer organization or a professional employer organization reporting entity, or the same meaning as in section 4133.01 of the Revised Code in the context of an alternate employer organization.
(B) Except as provided in divisions (C) and (D) of this section and in division (A) of section 5747.072 of the Revised Code, every employer required to deduct and withhold any amount under section 5747.06 of the Revised Code shall file a return and shall pay the amount required by law as follows:
(1) An employer who accumulates or is required to accumulate undeposited taxes of one hundred thousand dollars or more during a partial weekly withholding period shall make the payment of the undeposited taxes by the close of the first banking day after the day on which the accumulation reaches one hundred thousand dollars. If required under division (I) of this section, the payment shall be made by electronic funds transfer under section 5747.072 of the Revised Code.
(2) Except as required by division (B)(1) of this section, an employer whose actual or required payments under this section were at least eighty-four thousand dollars during the twelve-month period ending on the thirtieth day of June of the preceding calendar year shall make the payment of undeposited taxes within three banking days after the close of a partial weekly withholding period during which the employer was required to deduct and withhold any amount under this chapter. If required under division (I) of this section, the payment shall be made by electronic funds transfer under section 5747.072 of the Revised Code.
(3) Except as required by divisions (B)(1) and (2) of this section, if an employer's actual or required payments were more than two thousand dollars during the twelve-month period ending on the thirtieth day of June of the preceding calendar year, the employer shall make the payment of undeposited taxes for each month during which they were required to be withheld no later than fifteen days following the last day of that month. The employer shall file the return prescribed by the tax commissioner with the payment.
(4) Except as required by divisions (B)(1), (2), and (3) of this section, an employer shall make the payment of undeposited taxes for each calendar quarter during which they were required to be withheld no later than the last day of the month following the last day of March, June, September, and December each year. The employer shall file the return prescribed by the tax commissioner with the payment.
(C) The return and payment schedules prescribed by divisions (B)(1) and (2) of this section do not apply to the return and payment of undeposited school district income taxes arising from taxes levied pursuant to Chapter 5748. of the Revised Code. Undeposited school district income taxes shall be returned and paid pursuant to divisions (B)(3) and (4) of this section, as applicable.
(D)(1) The requirements of division (B) of this section are met if the amount paid is not less than ninety-five per cent of the actual tax withheld or required to be withheld for the prior quarterly, monthly, or partial weekly withholding period, and the underpayment is not due to willful neglect. Any underpayment of withheld tax shall be paid within thirty days of the date on which the withheld tax was due without regard to division (D)(1) of this section. An employer described in division (B)(1) or (2) of this section shall make the payment by electronic funds transfer under section 5747.072 of the Revised Code.
(2) If the tax commissioner believes that quarterly or monthly payments would result in a delay that might jeopardize the remittance of withholding payments, the commissioner may order that the payments be made weekly, or more frequently if necessary, and the payments shall be made no later than three banking days following the close of the period for which the jeopardy order is made. An order requiring weekly or more frequent payments shall be delivered to the employer personally or by certified mail and remains in effect until the commissioner notifies the employer to the contrary.
(3) If compelling circumstances exist concerning the remittance of undeposited taxes, the commissioner may order the employer to make payments under any of the payment schedules under division (B) of this section. The order shall be delivered to the employer personally or by certified mail and shall remain in effect until the commissioner notifies the employer to the contrary. For purposes of division (D)(3) of this section, "compelling circumstances" exist if either or both of the following are true:
(a) Based upon annualization of payments made or required to be made during the preceding calendar year and during the current calendar year, the employer would be required for the next calendar year to make payments under division (B)(2) of this section.
(b) Based upon annualization of payments made or required to be made during the current calendar year, the employer would be required for the next calendar year to make payments under division (B)(2) of this section.
(E)(1) An employer described in division (B)(1) or (2) of this section shall file, not later than the last day of the month following the end of each calendar quarter, a return covering, but not limited to, both the actual amount deducted and withheld and the amount required to be deducted and withheld for the tax imposed under section 5747.02 of the Revised Code during each partial weekly withholding period or portion of a partial weekly withholding period during that quarter. The employer shall file the quarterly return even if the aggregate amount required to be deducted and withheld for the quarter is zero dollars. At the time of filing the return, the employer shall pay any amounts of undeposited taxes for the quarter, whether actually deducted and withheld or required to be deducted and withheld, that have not been previously paid. If required under division (I) of this section, the payment shall be made by electronic funds transfer. The tax commissioner shall prescribe the form and other requirements of the quarterly return.
(2) In addition to other returns required to be filed and payments required to be made under this section, every employer required to deduct and withhold taxes shall file, not later than the thirty-first day of January of each year, an annual return covering, but not limited to, both the aggregate amount deducted and withheld and the aggregate amount required to be deducted and withheld during the entire preceding year for the tax imposed under section 5747.02 of the Revised Code and for each tax imposed under Chapter 5748. of the Revised Code. At the time of filing that return, the employer shall pay over any amounts of undeposited taxes for the preceding year, whether actually deducted and withheld or required to be deducted and withheld, that have not been previously paid. The employer shall make the annual report, to each employee and to the tax commissioner, of the compensation paid and each tax withheld, as the commissioner by rule may prescribe.
Each employer required to deduct and withhold any tax is liable for the payment of that amount required to be deducted and withheld, whether or not the tax has in fact been withheld, unless the failure to withhold was based upon the employer's good faith in reliance upon the statement of the employee as to liability, and the amount shall be deemed to be a special fund in trust for the general revenue fund.
(F) Each employer shall file with the employer's annual return the following items of information on employees for whom withholding is required under section 5747.06 of the Revised Code:
(1) The full name of each employee, the employee's address, the employee's school district of residence, and in the case of a nonresident employee, the employee's principal county of employment;
(2) The social security number of each employee;
(3) The total amount of compensation paid before any deductions to each employee for the period for which the annual return is made;
(4) The amount of the tax imposed by section 5747.02 of the Revised Code and the amount of each tax imposed under Chapter 5748. of the Revised Code withheld from the compensation of the employee for the period for which the annual return is made. The commissioner may extend upon good cause the period for filing any notice or return required to be filed under this section and may adopt rules relating to extensions of time. If the extension results in an extension of time for the payment of the amounts withheld with respect to which the return is filed, the employer shall pay, at the time the amount withheld is paid, an amount of interest computed at the rate per annum prescribed by section 5703.47 of the Revised Code on that amount withheld, from the day that amount was originally required to be paid to the day of actual payment or to the day an assessment is issued under section 5747.13 of the Revised Code, whichever occurs first.
(5) In addition to all other interest charges and penalties imposed, all amounts of taxes withheld or required to be withheld and remaining unpaid after the day the amounts are required to be paid shall bear interest from the date prescribed for payment at the rate per annum prescribed by section 5703.47 of the Revised Code on the amount unpaid, in addition to the amount withheld, until paid or until the day an assessment is issued under section 5747.13 of the Revised Code, whichever occurs first.
(G) An employee of a corporation, limited liability company, or business trust having control or supervision of or charged with the responsibility of filing the report and making payment, or an officer, member, manager, or trustee of a corporation, limited liability company, or business trust who is responsible for the execution of the corporation's, limited liability company's, or business trust's fiscal responsibilities, shall be personally liable for failure to file the report or pay the tax due as required by this section. The dissolution, termination, or bankruptcy of a corporation, limited liability company, or business trust does not discharge a responsible officer's, member's, manager's, employee's, or trustee's liability for a failure of the corporation, limited liability company, or business trust to file returns or pay tax due.
(H) If an employer required to deduct and withhold income tax from compensation and to pay that tax to the state under sections 5747.06 and 5747.07 of the Revised Code sells the employer's business or stock of merchandise or quits the employer's business, the taxes required to be deducted and withheld and paid to the state pursuant to those sections prior to that time, together with any interest and penalties imposed on those taxes, become due and payable immediately, and that person shall make a final return within fifteen days after the date of selling or quitting business. The employer's successor shall withhold a sufficient amount of the purchase money to cover the amount of the taxes, interest, and penalties due and unpaid, until the former owner produces a receipt from the tax commissioner showing that the taxes, interest, and penalties have been paid or a certificate indicating that no such taxes are due. If the purchaser of the business or stock of merchandise fails to withhold purchase money, the purchaser shall be personally liable for the payment of the taxes, interest, and penalties accrued and unpaid during the operation of the business by the former owner. If the amount of taxes, interest, and penalties outstanding at the time of the purchase exceeds the total purchase money, the tax commissioner in the commissioner's discretion may adjust the liability of the seller or the responsibility of the purchaser to pay that liability to maximize the collection of withholding tax revenue.
(I) An employer whose actual or required payments under this section exceeded eighty-four thousand dollars during the twelve-month period ending on the thirtieth day of June of the preceding calendar year shall make all payments required by this section for the year by electronic funds transfer under section 5747.072 of the Revised Code.
(J)(1) Every professional employer organization, professional employer organization reporting entity, and alternate employer organization shall file a report with the tax commissioner within thirty days after commencing business in this state that includes all of the following information:
(a) The name, address, number the employer receives from the secretary of state to do business in this state, if applicable, and federal employer identification number of each client employer of the organization or entity;
(b) The date that each client employer became a client of the organization or entity;
(c) The names and mailing addresses of the chief executive officer and the chief financial officer of each client employer for taxation of the client employer.
(2) Beginning with the calendar quarter ending after a professional employer organization, professional employer organization reporting entity, or alternate employer organization files the report required under division (J)(1) of this section, and every calendar quarter thereafter, the organization or entity shall file an updated report with the tax commissioner. The organization or entity shall file the updated report not later than the last day of the month following the end of the calendar quarter and shall include all of the following information in the report:
(a) If an entity became a client employer of the professional employer organization, professional employer organization reporting entity, or alternate employer organization at any time during the calendar quarter, all of the information required under division (J)(1) of this section for each new client employer;
(b) If an entity terminated the professional employer organization agreement or the alternate employer organization agreement between the entity and the professional employer organization, professional employer organization reporting entity, or alternate employer organization, as applicable, at any time during the calendar quarter, the information described in division (J)(1)(a) of this section for that entity, the date during the calendar quarter that the entity ceased being a client of the organization or reporting entity, if applicable, or the date the entity ceased business operations in this state, if applicable;
(c) If the name or mailing address of the chief executive officer or the chief financial officer of a client employer has changed since the professional employer organization, professional employer organization reporting entity, or alternate employer organization previously submitted a report under division (J)(1) or (2) of this section, the updated name or mailing address, or both, of the chief executive officer or the chief financial officer, as applicable;
(d) If none of the events described in divisions (J)(2)(a) to (c) of this section occurred during the calendar quarter, a statement of that fact.

Structure Ohio Revised Code

Ohio Revised Code

Title 57 | Taxation

Chapter 5747 | Income Tax

Section 5747.01 | Definitions.

Section 5747.011 | Gain or Loss Included in Trust's Ohio Taxable Income.

Section 5747.012 | Tax Treatment of Qualifying Investment Income From Pass-Through Entity.

Section 5747.013 | Calculating a Trust's Modified Ohio Taxable Income.

Section 5747.02 | Tax Rates.

Section 5747.021 | School District Income Tax.

Section 5747.022 | Tax Credits for Exemptions.

Section 5747.023 | Tax Credits for Armed Forces Member Killed in Combat or Military or Civilian Employee Killed in Terroristic or Military Action.

Section 5747.024 | Military Pay Not Included in Adjusted Gross Income.

Section 5747.025 | Personal Exemptions.

Section 5747.026 | Extensions for Filing and Payment by Members Called to Active Duty.

Section 5747.03 | Distributing Income Tax Revenue.

Section 5747.031 | Separate Reporting of Business and Nonbusiness Income Tax Revenues.

Section 5747.04 | Attributing Tax Receipts to County.

Section 5747.05 | Tax Credits.

Section 5747.054 | Tax Credit Based on Federal Dependent Care Credit.

Section 5747.055 | Tax Credit for Retirement Income.

Section 5747.057 | Tax Credit for Career-Technical Education Program Employees.

Section 5747.058 | Tax Credits to Foster Job Creation or Retention.

Section 5747.059 | Tax Credit for Ohio Withholding Tax Paid by One or More Qualifying Pass-Through Entities.

Section 5747.06 | Employer's Duty to Withhold Tax.

Section 5747.061 | Withholding Tax From Wages of Nonresident Employees.

Section 5747.062 | Withholding Tax From State Lottery Winnings.

Section 5747.063 | Withholding From Casino and Sports Gaming Winnings.

Section 5747.064 | Withholding From Video Lottery and Sports Gaming Winnings.

Section 5747.065 | Deduction and Withholding of State Income Tax From Unemployment Compensation Benefits.

Section 5747.07 | Employers to File Return and Pay Withholding.

Section 5747.071 | Withholding Tax From Retirement Benefits.

Section 5747.072 | Employers Remitting Taxes by Electronic Funds Transfer.

Section 5747.08 | Filing Income Tax Return.

Section 5747.082 | Use of Electronic Filing by Tax Preparers.

Section 5747.083 | Report or Payment of Use Tax on Personal Income Tax Return.

Section 5747.09 | Declaration of Estimated Taxes.

Section 5747.10 | Amended Returns.

Section 5747.11 | Refunds - Interest.

Section 5747.112 | Paying Refund of School District Income Taxes.

Section 5747.113 | Income Tax Refund Contribution System.

Section 5747.12 | Applying Refund to Satisfy Debt to State.

Section 5747.121 | Collecting Child Support From Refunds.

Section 5747.122 | Collecting Overpayments of Public Assistance From Refunds.

Section 5747.123 | Collecting Overpaid Child Support From Refunds.

Section 5747.13 | Liability of Employer for Failure to File Return or Collect or Remit Tax.

Section 5747.132 | Eliminating Interest or Penalty on Qualifying Refund Overpayment.

Section 5747.14 | Imposing Jeopardy Assessments.

Section 5747.15 | Failure to File or Remit Tax - Filing Frivolous, Dilatory or Fraudulent Claim.

Section 5747.16 | Secretary of State Agent for Service of Process on Nonresidents.

Section 5747.17 | Maintaining Records.

Section 5747.18 | Powers of Tax Commissioner.

Section 5747.19 | Filing Incomplete, False, and Fraudulent Returns.

Section 5747.20 | Allocating Nonbusiness Income or Deduction.

Section 5747.21 | Apportioning Business Income or Deduction.

Section 5747.212 | Apportioning Gain Recognized by Nonresident Equity Investor Selling an Investment in a Closely-Held Business.

Section 5747.22 | Apportioning and Allocating Income and Deductions of Pass-Through Entities.

Section 5747.221 | Items of Income and Deductions Not to Be Allocated or Apportioned to Ohio.

Section 5747.23 | Taxing Trust Income.

Section 5747.231 | Including Taxpayer's Entire Distributive or Proportionate Share Attributable to Pass-Through Entity.

Section 5747.24 | Presumption of Domicile.

Section 5747.26 | Lead Abatement Tax Credit.

Section 5747.27 | Credit for Displaced Worker Who Pays for Job Training to Enhance Ability to Get New Job.

Section 5747.28 | Credit for Purchase of Qualifying Property by Taxpayer Engaged in the Business of Producing Grapes.

Section 5747.29 | Political Campaign Contribution Tax Credit.

Section 5747.30 | Exemption for Nonresident Pass-Through Entities as to Commercial Printing.

Section 5747.331 | Nonrefundable Credit Equal to Borrower's Qualified Research and Development Loan Payments.

Section 5747.37 | Credit for Legally Adopted Minor Child.

Section 5747.38 | Pass-Through Entity Income Tax.

Section 5747.39 | Pass-Through Entity Owner Credit.

Section 5747.40 | Definitions Relating to Qualified Pass-Through Entities.

Section 5747.401 | Deemed Investors in Investment Pass-Through Entity Are Deemed Investors in Any Other Pass-Through Entity in Which Investment Pass-Through Entity Is Direct Investor.

Section 5747.41 | Withholding Tax on Qualifying Pass-Through Entity or Trust Having Individual Qualifying Investor or Beneficiary.

Section 5747.42 | Filing Annual Return.

Section 5747.43 | Filing Estimated Tax Return and Making Estimated Payments.

Section 5747.44 | Tax Payment by Electronic Funds Transfer.

Section 5747.45 | Taxable Year; Method of Accounting; Amended Reports With Payment or Application for Refund.

Section 5747.451 | Requirements of Qualifying Entity Upon Retirement From Business, Voluntary Dissolution or Transfer to Successor.

Section 5747.453 | Personal Liability of Employee or Beneficiary Of, or Investor In, a Qualifying Entity for Failure to File Report or Pay Tax.

Section 5747.46 | Library and Local Government Support Fund Definitions.

Section 5747.47 | Estimating, Certifying and Distributing of County's Share of Library and Local Government Support Fund.

Section 5747.48 | Distribution of County Library and Local Government Support Fund.

Section 5747.49 | Prohibiting Later Performance of Duties.

Section 5747.50 | Apportioning Local Government Fund to Political Subdivision or Eligible Taxing District.

Section 5747.501 | Estimating and Certifying Amount for Distribution Into Local Government Fund.

Section 5747.502 | Reports on Fines Resulting From Traffic Law Photo-Monitoring Devices.

Section 5747.503 | Payments to County Undivided Local Government Funds of Supplement for Townships.

Section 5747.51 | Allocating Local Government Fund to County Undivided Local Government Funds.

Section 5747.52 | Calculating Subdivision Share of Undivided Local Government Fund.

Section 5747.53 | Apportionment of Undivided Local Government Fund of County Under an Alternative Method or on a Formula Basis.

Section 5747.54 | Failure to Certify Percentage Share of the Undivided Local Government Fund.

Section 5747.55 | Appealing County Budget Commission Action.

Section 5747.60 | Delegating Investigation Powers of Tax Commissioner.

Section 5747.66 | Credit for Any Individual Who Is the Certificate Owner of a Tax Credit Certificate.

Section 5747.70 | Deductions for Contributions to College Savings Programs.

Section 5747.71 | Earned Income Tax Credit.

Section 5747.72 | Credit for Home Instruction Expenses.

Section 5747.73 | Credit for Donations to Scholarship Organizations.

Section 5747.75 | Credit for Dependents Who Attend Nonchartered Nonpublic School.

Section 5747.76 | Refundable Income Tax Credit for Owner of Rc 149.311 Certificate.

Section 5747.77 | Beginning Farmer Tax Credits.

Section 5747.78 | Deductions for Amounts Contributed to Able Savings Account.

Section 5747.79 | Deduction for Capital Gains From Sale of Business.

Section 5747.80 | Issuance of Tax Credits by Ohio Venture Capital Authority.

Section 5747.81 | Tax Credit for Holders of Small Business Investment Certificate.

Section 5747.98 | Order for Claiming Credits.

Section 5747.99 | Penalty.