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OH STATE/LOCAL TAX ISSUES
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1. OH local municipal tax, both live and work withholding
In some cases (Bath-Akron-Fairlawn JEDD is one of these); both live and work municipal taxes are being calculated. For example, we have an issue with a worksite, at 3585 Ridge Park Drive, Akron, OH 44333. This site falls under the Bath-Akron-Fairlawn JEDD tax. BSI required a BSI tax category 47 (Joint Economic Development Tax) for this tax, rather than a 01 (I tried both), so we set up the PR05 for Tax Cat 47. Tax Locator is calculating tax for the Bath-Akron-Fairlawn JEDD tax, but also for the live local tax for employees residing in Ohio.
When we sent a log to BSI, they responded with the following:
"In looking at your log, both local taxes have 100% worked. It is not listed as just a live tax. This does not look to be courtesy withholding as the courtesy withholding flags are not passed."
Where in Lawson is the % worked reflected? And how do we set the ‘courtesy withholding flag’ to NOT withhold the live local in addition to the work local? Our answer so far has been to disable the live local on the PR13.7. Is there a way to do this in set-up, or a way to prevent the live local from being calculated?
2. OH local municipal tax, working in more than one taxing location
Multi-worksite scenario issue – when working in two different taxing locations where taxable wage should equal same as Medicare, pre-tax deductions are deducted equally from each wage. The results – adding up taxable wage for localities does not tie back to Medicare taxable. Should this happen – the employee get the benefit of the pre-tax item in both localities? Or should the benefits be apportioned based on percent worked in each locality so that the end result matches Medicare taxable? How is this accomplished?
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