TAX012 - Ohio Local Tax Reconciliation

For each taxing locality, this report lists:

• Employee counts.

• Taxable gross amount.

• Tax withheld.

It lists separately employees paying resident and nonresident taxes, providing a total for each.

The report also includes taxes withheld for residents working in other taxing jurisdictions. Ohio taxing authorities apply credit for work tax paid to the residence tax liability (up to the rate of the residence tax). The report lists these work credits by locality name and includes the work tax rate. The report displays an asterisk next to the work tax rate if it exceeds the residence locality rate. In this case, the system calculates the credit based on the residence rate.

A summary line includes:

• Total taxable gross for the locality.

• Calculated tax based on the residence tax rate.

• Actual tax withheld.

• Total credit amount.

• Sum of actual tax withheld and credits.

• The calculated tax should be within pennies of the withheld tax and credits.