Withholding Rules

Section 183.06 of the Harrison Income Tax Municipal Code provides that each employer within, or doing business within the City of Harrison, is required to withhold the tax of 1% of qualifying wages, commissions or other compensation. Each employer shall be liable for the payment of the tax required to be deducted and withheld, whether or not such tax, in fact, has been withheld. Harrison employers - your 1st tax obligation is to our city. The city of residence (for employees) may impose a tax, but that tax claims secondary status to the city of employment, according to State of Ohio Law. If you have any questions, please contact the Harrison Income Tax Bureau at 513-367-3595.

Due Dates for Filing Remittance of Tax
  • Monthly Filers: Monthly withholdings exceeding $200 are due on or before the 15th of the following month.
  • Quarterly Filers: Quarterly withholding payments are due on or before April 30, July 31, October 31 and January 31.
As of January 2004 Qualifying Wages
An employer is required to withhold only on “qualifying wages” which are wages as defined in Internal Revenue Code Section 3121(a), generally the Medicare Wage Box of the form W-2.

Delinquent payments shall be subject to penalty and interest charges as provided in the Harrison Income Tax Code. In addition, any taxpayer who shall fail, neglect, or refuse to deduct, withhold, make a return and /or pay the tax, penalties, and interest imposed by Code, or any person who shall refuse to permit the Tax Commissioner to examine his books, records, and papers, or who shall knowingly make any incomplete, false, or fraudulent return, shall be subject to penalties as specified in the Harrison Income Tax Code.

Other compensation includes but is not limited to:
  • Vacation Pay
  • Tips, bonus, prizes connected with employment
  • Car allowance, personal use of employer - provided vehicle as reported on form W-2
  • Supplemental unemployment pay, severance pay
  • Group term life insurance - to the extent taxable to the federal government
  • incentive payments - no matter how described, including but not limited to, payments to induce early retirement.
  • Sick pay - whether paid by the employer to the employee or through a third party.
  • 401K plans and the like -contributions by an employee or on behalf of an employee from gross wages, into an employee or third party trust or pension plan as permitted by any provision of the Internal Revenue Code which may be excludable from gross wages for federal income tax purposes.
  • Deferred compensation- payments made pursuant to deferred compensation arrangements whether paid before or after retirement or severance from employment, and whether paid directly to an employee or to a third party, are subject to withholding when paid.
  • Property, board, lodging & similar items- received by an employee in lieu of cash compensation.
  • Stipends
  • Income from a guaranteed annual wage contract.
  • Stock options income from the exercise of stock options is included in the definition of qualifying wages and is subject to withholding requirements.
  • Moving expense reimbursement - in excess of federal form 3903 allowance.