COLUMBUS—State Representative Mark Romanchuk (R-Ontario) is urging employers in Richland County to begin using new state income tax withholding rates that take effect for payrolls ending on or after September 1st, allowing employees to benefit from tax cuts that were included in House Bill 59—the recently enacted state operating budget.
The tax cuts are part of a comprehensive tax reform package in the state budget, which also cuts small business taxes by 50 percent and increases the sales tax by one-quarter percent. The budget reduces income tax rates for Ohio workers by 8.5 percent in 2013, then by an additional half-percent in 2014 and an additional one percent in 2015 to yield a 10 percent tax cut by tax year 2015. Overall, the total tax-reform package will cut Ohioans’ taxes by $2.7 billion over the next three years.
“By having employers act on these new rates starting on September 1st, Ohioans can have more take-home pay sooner, rather than later,” Rep. Romanchuk said. “This is all part of an effort to strengthen our state’s economy and make Ohio more competitive—leading to more jobs.”
The lower withholding rates mean that Ohio employers should deduct 9 percent less state tax from workers’ paychecks beginning September 1st. The new rate, to be in effect through the end of 2014, incorporates the 8.5 percent tax cut for 2013 and the additional 0.5 percent cut in 2014.
Reduced withholding tables and how-to instructions are posted on the Ohio Department of Taxation’s website at www.tax.ohio.gov.
“This is all part of an effort to strengthen our state’s economy and make Ohio more competitive—leading to more jobs,” said State Representative Mark Romanchuk.