ADP has confirmed that effective January 1, 2020, the following Ohio Villages have enacted a municipal income tax.
ADP local code Local Name Tax Rate
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2646 The Village of Risingsun 1.00%
2645 The Village of Fulton 1.00%
The Villages do not offer a resident credit for income tax paid to another municipality. While our records indicate you have employees that live or work in the State of Ohio, we cannot determine if they are liable for the withholding of these taxes. Employees must be evaluated on an individual basis.
Qualifying employees that live or work in these villages should be assigned a new payroll local tax code for the village(s), as appropriate. The new file/number/record set needs to have the appropriate ADP local code noted above to deduct the tax.
· If you subscribe to the Multi-Jurisdiction feature, at the same time
that you are coding your employees with the assigned local code(s) (via
permanent jurisdiction change), any 2020 pays you may have processed
between January 1 and the present should be moved to the new
jurisdiction and the necessary missed tax withheld from each employees'
next pay if applicable.
or
· If you do not subscribe to the Multi-Jurisdiction feature,
qualifying employees can be assigned new file numbers via Same Control
Employee Transfer (SCET) or Terminate/New Hire with any 2020 pays
between January 1 and the present moved to the new file number and the
missed tax withheld with the next pay if applicable.
Please note that since payrolls with a date of January 1, 2020 and beyond may have already processed, under-withholding may have occurred. If employees have been under-withheld, employers should recoup the monies and remit with the following deposit.
Risingsun and Fulton has contracted Regional Income Tax Agency (RITA) to collect and administer this income tax. RITA requires employers producing 250 or more local W-2 forms to file W-2s via magnetic media (CD-ROM). Clients should determine if they now meet this form threshold. If so, they should contact their Client Services Team to request magnetic media setup for W-2s.
If you have any questions regarding this tax bulletin, or any other subject, contact your dedicated Service Team.