If you are an employer in Urbana, Ohio, it is important to be aware of the local payroll tax requirements for businesses operating in the city. These requirements may include registering your business with the city and withholding a certain percentage of your employees' wages for local taxes.
How to Register for Payroll Tax in Urbana
Urbana, Ohio Local Withholding Tax Setup for
LLC, Professional Corporation, LLP, Corporation
Employers must register with the Ohio Regional Income Tax Agency (RITA) to withhold income tax from the qualifying wages of employees working within Urbana, even if they are remote.
Complete Registration Online
Create a RITA MyAccount, if you haven't already done so, to register for Urbana withholding tax. Select "Withholder" as the tax type.
Add Municipality to RITA MyAccount
Log in to your RITA MyAccount and click "Add Municipality" to add Urbana withholding tax to your account.
Payroll might seem like a straightforward process for business owners: Calculate hours, apply pay rates, factor in deductions. However, behind the scenes, proper payroll management involves thorough recordkeeping. It’s what keeps your business compliance up to date and protected.
Think of those records as your shield against the dreaded IRS audit. Painstaking recordkeeping demonstrates your commitment to running a responsible business. Plus, federal laws (like the FLSA) and an assortment of state requirements dictate how long you need to hold on to specific payroll documents.
The decision to hire remote workers can transform your business. You’ll have access to a national (or even global) talent pool, save on overhead costs, and provide a valuable incentive to join your team: According to a 2022 Future Forum study, 80% of knowledge workers desire a flexible work location. Remote work can also increase employee satisfaction and productivity, improve work-life balance, and even support diversity and inclusion—employees who lack transportation, can’t afford to live near the office, or even need to pick up the kids every day at noon won’t necessarily be precluded from full participation.
Understanding employee classifications ensures everyone gets the fair shake they deserve regarding compensation and benefits.
For businesses, especially those sprouting in various states and embracing remote work, this knowledge is the foundation of creating a cohesive workplace that thrives within the bounds of the law.
At Mosey, we’re on a mission to simplify the world of employee types for you. We aim to be your trusted source of clarity and authority in the often-confusing realm of employment classifications.
Gabrielle Sinacola |May 15, 2024
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