COLUMBUS: Ohio’s tax chief is reminding businesses that reduced income-tax rates are about to kick in.
Tax Commissioner Joe Testa told employers in an alert Monday that new withholding rates take effect for payrolls ending on or after Sept. 1. His advisory directs businesses to updated state tax tables and how-to instructions.
The $62 billion, two-year state budget Gov. John Kasich signed June 30 cut Ohio’s income tax rates by 8.5 percent in 2013, another half percent in 2014 and another 1 percent in 2015. These are Ohio’s first downward revisions since 2009.
Testa said changing withholding rates now will allow workers to benefit right away from the tax reductions.
Taxpayers will receive the full benefit when filing state tax returns next spring.
Ohio Department of Taxation: http://www.tax.ohio.gov