Pursuant to the passage of Amended Substitute House Bill 5 in December 2014, new State mandated municipal income tax guidelines have been established, effective with tax returns due for tax years beginning January 1, 2016 and thereafter.

  • Changes in filing due date for employee withholding.
  • ►  Withholding remittance and payment must be received no later than the 15th of the month following the reporting period.
  • Changes in penalty and interest rates.
  • ►  Late filing penalty is $25.00 per return (capped at $150/return).  The penalty is a one-time $500.00 for casino operators and lottery sales agents.
  • ►  Late payment penalty is a one-time 50% penalty of the unpaid balance at the time payment is due.
  • ►  Interest will be calculated at the July Federal short-term interest rate plus 5%.  For 2016 returns, paid in 2016, the monthly interest rate is 0.42%
  • Changes in monthly and quarterly withholding thresholds.
  • ►  Employers must remit MONTHLY if withholding in the previous calendar year exceeded $2,399 or if the amount required to be withheld during           any month of the previous calendar quarter exceeded $200.
  • ►  Employers can remit QUARTERLY if their withholdings are under the thresholds described for monthly filers.


                   EFFECTIVE IMMEDIATELY***

               City of Lorain income tax quarterly withholding due dates have changed as a result of Ohio Senate Bill               172.  Effective with  the third quarter 2016, the due dates for QUARTERLY filers is the last day of the                     month following the end of the quarter.

                 * April 30th

             *July 31st

             *October 31st

             *January 31st




  • Withholding guidelines for employers with transient workers; and for those employers qualified as a "small employer".  
  • ► Details at the link below to ORC chapter 718.  See Section 718.011.

Chapter 718 of the Ohio Revised Code can be found at:   Please reference this document to determine how the new, State mandated, changes affect your business.