Employer Withholding

Tax Forms ButtonTax Rate and Interest Rate

Current Tax Rate:  2.50%

The interest rate is calculated based on the federal short-term rate plus 5%. The rates are as follows:

Calendar Year 2018: 6% per year or 0.50% per month

Calendar Year 2019: 7% per year or 0.58% per month

Filing Frequency

Monthly: Monthly remittance is required if your prior calendar year withholding exceeded $2,399.00 or any month of the current year's preceding quarter exceeds $200.00.

Quarterly: Any employer, agent of an employer, or Other Payer not exceeding the thresholds stated above shall make quarterly payments.

Due Dates

Monthly Filers: Monthly withholding payments shall be due on or before the 15th day of the month following the end of the withholding period.

Quarterly Filers: Quarterly withholding payments shall be due on or before the last day of the month following the end of the withholding period (April 30, July 31, October 31 and January 31)

Annual Withholding Reconciliation

On or before February 28th of each year, every employer must file an annual reconciliation of Oakwood income tax withheld. Copies of all W-2 forms applicable to the reconciliation must be attached and in alphabetical order. All W-2’s must contain the employee’s name, address, social security number, qualifying wage, city of Oakwood income tax withheld and the name and address of the employer.

Penalties and Interest

Late Filing Penalty: A late filing penalty of $25.00 per month (up to $150.00) shall be imposed for the failure to timely file a city withholding return or annual withholding reconciliation regardless of liability shown

Penalty: A penalty shall be imposed for the failure to timely pay withholding tax and shall be equal to 50% of the unpaid withholding tax.

Interest: Interest shall be imposed for the failure to timely pay withholding tax. The rate is adjusted annually and is based on the federal short term rate, rounded to the nearest whole number percent, plus 5%. The imposition of interest shall be assessed per month or fraction thereof

This information is intended to provide a brief summary of filing requirements and does not cover all possible circumstances.

If you have any questions or need additional information, you may contact the Income Tax Department at (937) 298-0531 weekdays from 8:00 a.m. to 5:00 p.m.

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