Ohio § 5747.07

§ 5747.07.

(A) As used in this section: (1) “ Partial weekly withholding period ” means a period during which an employer directly, indirectly, or constructively

pays compensation to, or credits compensation to the benefit of, an employee, and

that consists of a consecutive Saturday, Sunday, Monday, and Tuesday or a consecutive

Wednesday, Thursday, and Friday.  There are two partial weekly withholding periods each week, except that a partial

weekly withholding period cannot extend from one calendar year into the next calendar

year;  if the first day of January falls on a day other than Saturday or Wednesday,

the partial weekly withholding period ends on the thirty-first day of December and

there are three partial weekly withholding periods during that week. (2) “ Undeposited taxes ” means the taxes an employer is required to deduct and withhold from an employee's

compensation pursuant to section 5747.06 of the Revised Code that have not been remitted to the tax commissioner pursuant to this section or section 5747.072 of the Revised Code . (3) A “ week ” begins on Saturday and concludes at the end of the following Friday. (4) “Client employer” has the same meaning as in section 4125.01 of the Revised Code in the context of a professional employer organization or a professional employer

organization reporting entity, or the same meaning as in section 4133.01 of the Revised Code in the context of an alternate employer organization. (B) Except as provided in divisions (C) and (D) of this section and in division (A) of section 5747.072 of the Revised Code , every employer required to deduct and withhold any amount under section 5747.06 of the Revised Code shall file a return and shall pay the amount required by law as follows: (1) An employer who accumulates or is required to accumulate undeposited taxes of one

hundred thousand dollars or more during a partial weekly withholding period shall

make the payment of the undeposited taxes by the close of the first banking day after

the day on which the accumulation reaches one hundred thousand dollars.  If required under division (I) of this section, the payment shall be made electronically

under section 5747.072 of the Revised Code . (2) Except as required by division (B)(1) of this section, an employer whose actual or

required payments under this section were at least eighty-four thousand dollars during

the twelve-month period ending on the thirtieth day of June of the preceding calendar

year shall make the payment of undeposited taxes within three banking days after the

close of a partial weekly withholding period during which the employer was required

to deduct and withhold any amount under this chapter.  If required under division (I) of this section, the payment shall be made electronically

under section 5747.072 of the Revised Code . (3) Except as required by divisions (B)(1) and (2) of this section, if an employer's

actual or required payments were more than two thousand dollars during the twelve-month

period ending on the thirtieth day of June of the preceding calendar year, the employer

shall make the payment of undeposited taxes for each month during which they were

required to be withheld no later than fifteen days following the last day of that

month.  The employer shall file the return prescribed by the tax commissioner with the payment. (4) Except as required by divisions (B)(1), (2), and (3) of this section, an employer

shall make the payment of undeposited taxes for each calendar quarter during which

they were required to be withheld no later than the last day of the month following

the last day of March, June, September, and December each year.  The employer shall file the return prescribed by the tax commissioner with the payment. (C) The return and payment schedules prescribed by divisions (B)(1) and (2) of this section

do not apply to the return and payment of undeposited school district income taxes

arising from taxes levied pursuant to Chapter 5748. of the Revised Code.  Undeposited school district income taxes shall be returned and paid pursuant to

divisions (B)(3) and (4) of this section, as applicable. (D)(1) The requirements of division (B) of this section are met if the amount paid is not

less than ninety-five per cent of the actual tax withheld or required to be withheld

for the prior quarterly, monthly, or partial weekly withholding period, and the underpayment

is not due to willful neglect.  Any underpayment of withheld tax shall be paid within thirty days of the date on

which the withheld tax was due without regard to division (D)(1) of this section.  An employer described in division (B)(1) or (2) of this section shall make the payment

electronically under section 5747.072 of the Revised Code . (2) If the tax commissioner believes that quarterly or monthly payments would result

in a delay that might jeopardize the remittance of withholding payments, the commissioner

may order that the payments be made weekly, or more frequently if necessary, and the

payments shall be made no later than three banking days following the close of the

period for which the jeopardy order is made.  An order requiring weekly or more frequent payments shall be delivered to the employer

in the manner provided in section 5703.37 of the Revised Code and remains in effect until the commissioner notifies the employer to the contrary. (3) If compelling circumstances exist concerning the remittance of undeposited taxes,

the commissioner may order the employer to make payments under any of the payment

schedules under division (B) of this section.  The order shall be delivered to the employer in the manner provided in section 5703.37 of the Revised Code and shall remain in effect until the commissioner notifies the employer to the contrary.  For purposes of division (D)(3) of this section, “compelling circumstances” exist

if either or both of the following are true: (a) Based upon annualization of payments made or required to be made during the preceding

calendar year and during the current calendar year, the employer would be required

for the next calendar year to make payments under division (B)(2) of this section. (b) Based upon annualization of payments made or required to be made during the current

calendar year, the employer would be required for the next calendar year to make payments

under division (B)(2) of this section. (E)(1) In addition to other returns required to be filed and payments required to be made

under this section, every employer required to deduct and withhold taxes shall file,

not later than the thirty-first day of January of each year, an annual return covering,

but not limited to, both the aggregate amount deducted and withheld and the aggregate

amount required to be deducted and withheld during the entire preceding year for the

tax imposed under section 5747.02 of the Revised Code and for each tax imposed under Chapter 5748. of the Revised Code.  At the time of filing that return, the employer shall pay over any amounts of undeposited

taxes for the preceding year, whether actually deducted and withheld or required to

be deducted and withheld, that have not been previously paid.  The employer shall make the annual report, to each employee and to the tax commissioner,

of the compensation paid and each tax withheld, as the commissioner by rule may prescribe. (2) Each employer required to deduct and withhold any tax is liable for the payment of

that amount required to be deducted and withheld, whether or not the tax has in fact

been withheld, unless the failure to withhold was based upon the employer's good faith

in reliance upon the statement of the employee as to liability, and the amount shall

be deemed to be a special fund in trust for the general revenue fund. (F) Each employer shall file with the employer's annual return the following items of

information on employees for whom withholding is required under section 5747.06 of the Revised Code : (1) The full name of each employee, the employee's address, the employee's school district

of residence, and in the case of a nonresident employee, the employee's principal

county of employment; (2) The social security number of each employee; (3) The total amount of compensation paid before any deductions to each employee for

the period for which the annual return is made; (4) The amount of the tax imposed by section 5747.02 of the Revised Code and the amount of each tax imposed under Chapter 5748. of the Revised Code withheld

from the compensation of the employee for the period for which the annual return is

made.  The commissioner may extend upon good cause the period for filing any notice or

return required to be filed under this section and may adopt rules relating to extensions

of time.  If the extension results in an extension of time for the payment of the amounts

withheld with respect to which the return is filed, the employer shall pay, at the

time the amount withheld is paid, an amount of interest computed at the rate per annum

prescribed by section 5703.47 of the Revised Code on that amount withheld, from the day that amount was originally required to be paid

to the day of actual payment or to the day an assessment is issued under section 5747.13 of the Revised Code , whichever occurs first. (5) In addition to all other interest charges and penalties imposed, all amounts of taxes

withheld or required to be withheld and remaining unpaid after the day the amounts

are required to be paid shall bear interest from the date prescribed for payment at

the rate per annum prescribed by section 5703.47 of the Revised Code on the amount unpaid, in addition to the amount withheld, until paid or until the

day an assessment is issued under section 5747.13 of the Revised Code , whichever occurs first. (G) An employee of a corporation, limited liability company, or business trust having

control or supervision of or charged with the responsibility of filing the report

and making payment, or an officer, member, manager, or trustee of a corporation, limited

liability company, or business trust who is responsible for the execution of the corporation's,

limited liability company's, or business trust's fiscal responsibilities, shall be

personally liable for failure to file the report or pay the tax due as required by

this section.  The dissolution, termination, or bankruptcy of a corporation, limited liability

company, or business trust does not discharge a responsible officer's, member's, manager's,

employee's, or trustee's liability for a failure of the corporation, limited liability

company, or business trust to file returns or pay tax due. (H) If an employer required to deduct and withhold income tax from compensation and to

pay that tax to the state under sections 5747.06 and 5747.07 of the Revised Code sells the employer's business or stock of merchandise or quits the employer's business,

the taxes required to be deducted and withheld and paid to the state pursuant to those

sections prior to that time, together with any interest and penalties imposed on those

taxes, become due and payable immediately, and that person shall make a final return

within fifteen days after the date of selling or quitting business.  The employer's successor shall withhold a sufficient amount of the purchase money

to cover the amount of the taxes, interest, and penalties due and unpaid, until the

former owner produces a receipt from the tax commissioner showing that the taxes,

interest, and penalties have been paid or a certificate indicating that no such taxes

are due.  If the purchaser of the business or stock of merchandise fails to withhold purchase

money, the purchaser shall be personally liable for the payment of the taxes, interest,

and penalties accrued and unpaid during the operation of the business by the former

owner.  If the amount of taxes, interest, and penalties outstanding at the time of the purchase

exceeds the total purchase money, the tax commissioner in the commissioner's discretion

may adjust the liability of the seller or the responsibility of the purchaser to pay

that liability to maximize the collection of withholding tax revenue. (I) An employer whose actual or required payments under this section exceeded eighty-four

thousand dollars during the twelve-month period ending on the thirtieth day of June

of the preceding calendar year shall make all payments required by this section for

the year electronically under section 5747.072 of the Revised Code . (J)(1) Every professional employer organization, professional employer organization reporting

entity, and alternate employer organization shall file a report with the tax commissioner

within thirty days after commencing business in this state that includes all of the

following information: (a) The name, address, number the employer receives from the secretary of state to do

business in this state, if applicable, and federal employer identification number

of each client employer of the organization or entity; (b) The date that each client employer became a client of the organization or entity; (c) The names and mailing addresses of the chief executive officer and the chief financial

officer of each client employer for taxation of the client employer. (2) Beginning with the calendar quarter ending after a professional employer organization,

professional employer organization reporting entity, or alternate employer organization

files the report required under division (J)(1) of this section, and every calendar

quarter thereafter, the organization or entity shall file an updated report with the

tax commissioner.  The organization or entity shall file the updated report not later than the last

day of the month following the end of the calendar quarter and shall include all of

the following information in the report: (a) If an entity became a client employer of the professional employer organization,

professional employer organization reporting entity, or alternate employer organization

at any time during the calendar quarter, all of the information required under division

(J)(1) of this section for each new client employer; (b) If an entity terminated the professional employer organization agreement or the alternate

employer organization agreement between the entity and the professional employer organization,

professional employer organization reporting entity, or alternate employer organization,

as applicable, at any time during the calendar quarter, the information described

in division (J)(1)(a) of this section for that entity, the date during the calendar

quarter that the entity ceased being a client of the organization or reporting entity,

if applicable, or the date the entity ceased business operations in this state, if

applicable; (c) If the name or mailing address of the chief executive officer or the chief financial

officer of a client employer has changed since the professional employer organization,

professional employer organization reporting entity, or alternate employer organization

previously submitted a report under division (J)(1) or (2) of this section, the updated

name or mailing address, or both, of the chief executive officer or the chief financial

officer, as applicable; (d) If none of the events described in divisions (J)(2)(a) to (c) of this section occurred

during the calendar quarter, a statement of that fact.