The COVID-19 pandemic has shifted the location of work for many residents and local employees. For individuals who have changed their physical work location, the State of Ohio has changed the way you may pay your municipal income taxes.
Working from home? Here is what you need to know.
Prior to the pandemic, State law required employers to withhold city income taxes for the place where the work was performed. This means, if someone worked in Akron and lived in Hudson, they paid Akron income taxes. When many employees began working from home during the pandemic, the General Assembly temporarily allowed employers to continue to withhold to the city the work was performed in prior to the pandemic. This was known as the primary place of employment. This temporary accommodation for employers ended December 31, 2021. This means employers will return to withholding city income tax based on where the work is performed. For many individuals, this is now their home city, or may be a hybrid of their home city and the city in which their employer's office is located.
What if I already both reside and work in Hudson?
Great! You do not need to change anything. However, if your employer is based anywhere but Hudson and you are working from home, please ask your employer to begin withholding taxes for Hudson. Even if you do not work from home every day, your employer is required to withhold income taxes for Hudson on the days you do work from home.
Will I have to file multiple income tax returns if I work from the office in one city and from home in a different city?
No, you are not required to file multiple returns. Keep in mind that Hudson residents are required to file an annual tax return with the Regional Income Tax Agency [RITA], accessible at www.rita.com, regardless of whether your employer's primary location is in Hudson or elsewhere. Even if your withholdings are for another jurisdiction, you would file a return through RITA because you are a resident.
If I am paying income taxes, does it really matter which city I pay income taxes to?
Yes! In Ohio, each city is funded primarily through the income taxes paid by those who work and live in our communities. Our ability to provide paved streets, upgraded infrastructure, emergency services, trash collection, and more rests on the income we receive from those who are primarily consuming the public services we provide.
Ensuring your employer is paying taxes to the proper entity makes all the difference in our ability to operate. We need your help to make sure your tax information is correct! Some employers may continue withholding in accordance with your pre-pandemic status, but we ask everyone to comply with State law by confirming your arrangement with whomever manages payroll for your employer.
What if I need clarification or have questions about my specific work arrangement?
You can call the Reginal Income Tax Agency (RITA) at 800-860-7482 between 8:00 am - 5:00 pm Monday - Friday.