Form Sd-1 - Employer'S School District Income Tax Withholding Instructions

SD-1

Page 2

Electronic Funds Transfer (EFT) payments are not

5. EMPLOYER’S LIABILITY FOR SCHOOL DISTRICT

required for School District withholding tax.

WITHHELD TAX

Employers discovering a withholding error from a pre-

Each withholding agent is liable for the School District tax

vious period should adjust their next SD-101(s) by

to be withheld. For purposes of assessment and collec-

showing the net withholding tax due within that same

tion, amounts required to be withheld and paid to the Ohio

school district only. Employers may not adjust between

Department of Taxation are considered to be a tax on the

school districts on the SD-101.

employer. The officer or the employee having control or

supervision of or charged with the responsibility of filing

School District Employer’s Annual Reconciliation of

the report and making payment shall be held personally

Tax Withheld

liable for any failure to file the report or pay the tax as re-

All employers required to withhold must file no later

quired by law.

than January 31 of the next calendar year an annual

report, Form SD-141, reconciling School District tax

6. INTEREST AND PENALTIES

withheld and paid for the past calendar year. Employ-

ers selling or quitting their business during the year

If an employer fails to pay the School District tax deducted

must file their final return within 15 days after the date

and withheld from employees by the due date, interest shall

of selling or quitting the business.

accrue on the unpaid tax at the rate provided for under

Section 5703.47 of the Ohio Revised Code. Interest on the

Employers should show all withholding amounts on

unpaid tax is due in addition to any penalty for late filing or

the back of the SD-141 and bring the net overpay-

late payment of a tax due.

ment or underpayment to the front of the return.

If an employer fails to pay the tax deducted and withheld

Employers discovering an error after filing their SD-

from employees by the due date, the employer shall incur

141 should file the Amended School District

a penalty of 50% of the tax due, unless failure to pay was

Employer’s Annual Reconciliation, Form SD-141X, to

for reasonable cause and not willful neglect.

adjust for the error.

If an employer does not file Form SD-101 or SD-141 or

Wage and Tax Statement, Form IT-2 (or

files after the due date, the penalty is the greater of $50 per

combined W-2)

month up to a maximum of $500 or 5% per month up to a

On or before January 31 of the succeeding calendar

maximum of 50% of the tax due.

year, employers required to withhold School District

tax must furnish to all employees subject to the tax

7. WHAT RECORDS TO KEEP

two copies of the report of compensation paid during

the calendar year and the amount deducted and with-

Every employer required to withhold School District income

held as School District tax. Employers may use Ohio

tax must maintain a current, accurate record of all persons

Form IT-2 or the federal combined W-2. Employers

subject to the tax.

should clearly identify the school district on the

W-2 by its four-digit number.

Records must include:

(1) Amounts and dates of all compensation paid subject

Transmittal of Wage and Tax Statements, Form IT-3

to withholding;

All employers required to withhold must file with the

(2) Names, addresses, school district of residence, and

Ohio Department of Taxation by the last day of Feb-

social security numbers of all employees receiving such

ruary of the succeeding calendar year a copy of Ohio

compensation;

Form IT-3, the state’s copy of Form IT-2 (or combined

(3) Periods of employment, including periods during which

W-2), and a list (preferably on calculator tape) of the

compensation is paid while absent due to sickness or

Ohio and School District income tax withheld. In lieu

injury;

of Form IT-2 or combined W-2 the employer may sub-

(4) Amount of compensation paid by pay period; and

mit the required employee information on magnetic

(5) Copies of annual returns filed with the Ohio Depart-

tape (format furnished upon request).

ment of Taxation.

If an error is discovered on an IT-2 or combined W-2

Employers must maintain records for at least four years.

an employer must furnish two copies of a corrected

IT-2 or combined W-2 marked “CORRECTED BY

EMPLOYER” to the employee and one copy to the

Department of Taxation marked “REISSUED BY EM-

PLOYER.”

Form Sd-1 - Employer'S School District Income Tax Withholding Instructions - 2000 Page 2

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