Remote Workers/Telecommuters

Remote work (also known as work from home or telecommuting) is a type of flexible working arrangement that allows an employee to work from a remote location outside of corporate offices. Due to the coronavirus pandemic, this arrangement has become increasingly popular.

Prior to the pandemic, employers were required to withhold municipal income tax to the employee’s principal place of work. During 2020, employers were permitted to continue withholding for an employee’s principal place of work (as established pre-pandemic) even though they may have been working remotely at home (Ohio House Bill 197.) For tax year 2021, with the passage of Ohio House Bill 110, employers were given the option to shift an employee’s principal place of work to their home or continue withholding pre-pandemic. However, the employee may obtain a refund if the employer withheld for the pre-pandemic locale. Ohio House Bill 110 was only effective through December 31, 2021.

Beginning with tax year 2022, employer withholding has shifted back to pre-pandemic rules. Employers are once again required to withhold municipal income tax to where their employees are working.

If you were working at home during all or part of 2022 or later tax years, yet your form W-2 shows that your wages were withheld for another municipality (i.e. Dayton, Kettering, etc.) you should obtain a refund for the taxes erroneously withheld to that city. You are only subject to the other city’s income tax for the time actually worked in that city. When you file your Oakwood return, you may only claim credit for work city taxes.

Please contact the Tax Department should you require assistance with the preparation of another city’s refund request form.