Before issuing payments to employees, ensure that you've completed the payroll registration process in the relevant state of their employment. This might take a few weeks, so beginning early is advisable to get the necessary tax account details for payment purposes.
Niural collaborates with Middesk to assist you in the state registration process. For additional information, please explore the details provided below.
Let Niural register for you
Niural partners with Middesk to help you register your business in new states.
How it works
On adding a new work address in a different state or recruiting a new employee who has been allocated a work address in that state, you can access registration support within Niural.
The pricing is subject to change based on the state.
Here's an overview of the procedure:
1. Provide essential business details.
2. Niural and Middesk will verify the accuracy of the information.
3. Registration applications are normally sent within 3-5 business days.
4. Look out for registration details from Middesk in the mail.
5. Middesk can guide you through entering any data they don't handle on your behalf through Niural.
Initiate the state tax registration process
- Sign in to Niural as an employer.
- Navigate to the Company tab under Company.
- Select Tax Setup.
- Under “Ohio Tax Setup”, click Let Niural register for you.
Note: Niural can only register for you if you don't yet have a state account already.
- Enter company information on Middesk.
- Once you submit your order, we will send you email updates regarding the status. The total cost of your order will be added to your upcoming monthly invoice.
- Check the status of your order
- Once your order is finalized, you will receive emails from both Niural and Middesk. These emails will outline the subsequent actions, including:
1. Reviewing registration information.
2. Any additional state-specific instructions.
Before your order is finalized, you can use the link provided in the state registration confirmation email from Niural to track the progress of your order.
Cancel your order
If an order is already completed, you'll need to contact Middesk to cancel.
If an order is in progress you can email us at support@niural.com.
You'll be refunded, but it can take a few business days to process.
Registering with OH agencies on your own
Ohio tax agencies
- Income tax withholding: Ohio Department of Taxation
- Unemployment Tax: Ohio Department of Job and Family Services
- Others: Local Ohio tax agencies
Withholding account registration
To register with the Ohio Business Gateway, follow these steps:
1. Visit the Ohio Business Gateway and click "Log In."
2. Click "Create Account" and proceed through the following sections:
- Email verification
- Personal info
- Pick a username
- Create a password
- Account recovery
- Terms and conditions
3. During the account setup, input your anticipated annual withholding tax amount, which determines your filing frequency. If needed, refer to the "Withholding Tax Filing Guidelines" for the current year.
4. In Niural, go to the Company details section, select Tax Setup, find the "Ohio Tax Setup section, and click on Edit to specify your filing frequency.
5. After completing your registration, you'll receive a "Transaction Receipt Number" confirming registration. Note that Niural does not require this number.
6. Retrieve the Registration Letter, which contains your "Withholding Account Number." Input this number into Niural.
The Ohio Department of Taxation does not require granting Niural third-party access for filing or paying your withholding taxes.
Enter the tax account information in Niural
- Once a valid Ohio work address has been added in Niural for one or more employee(s), you can add your tax account information:
- 1. Go to the Company details section in your Niural account.
- 2. Click on Tax Setup.
- 3. Select Edit on Ohio Tax Setup.
- 4. Enter your Withholding Account Number and filing frequency. Your Withholding Account Number will be 8-digits and will begin with 51, 52, 53, or 54.
Ohio Municipal (City) Income Taxes
City taxes in Ohio are primarily determined by the employee's work location. Employers are required to:
- Register to withhold and pay taxes for the area in which the employee works.
- Additionally, it may be necessary to withhold taxes for an employee's home location.
Register for and enter the tax account information in Niural
To determine where to register, consult this website for a list of cities that assess income tax. After identifying the relevant cities, register with the appropriate local tax agencies.
In Niural, navigate to the Tax Setup to input your account information.
Note that in some cases, the city may use your Federal Employer Identification Number (FEIN) as their account number, and you may not be issued a separate number.
RITA (Regional Income Tax Agency)
For cities that outsource their tax collection to third-party collectors like RITA, businesses paying income tax in such municipalities must register with the tax collector. Online registration is available for your convenience.
If you opt for paper filing:
- Download the Business Registration Form 48.
- Complete the sections relevant to your company. If you've previously filed a Registration Form 48 and have a new physical location within a RITA member municipality, you must submit a new Form 48 for the new location or worksite.
- For additional support, visit the RITA website [insert link].
Adding Niural as your third-party agent in Ohio
Once the following steps are completed in Niural, the form will be ready for signing:
1. Add a company work address in Ohio.
2. Assign an Ohio work address to an employee’s work location in their profile.
3. Fill out the Ohio state tax setup information.
To sign the form in Niural:
1. The company signatory should log in to their Niural profile.
2. Click on the relevant Ohio to-do item from the Home page.
3. Electronically sign the auto-generated form in Niural.
Find account numbers and rate info (if already registered)
If you've previously registered in Ohio, it's essential to input your tax account details in Niural to facilitate employee payments. Ensure registration with one or more of the following agencies for Niural to handle tax filing and payments:
- Ohio Department of Taxation for income tax withholding
- Ohio Department of Job and Family Services for unemployment tax
- Various local Ohio tax agencies
Finding withholding tax account number and tax filing frequency
To find your withholding tax account number and filing frequency:
Locate your 8-digit Withholding Account Number, starting with 51, 52, 53, or 54, provided by the Department of Taxation. Check your Registration Confirmation Letter or Employer's Payment of Ohio Tax Withheld (Form IT-501). If unsure, contact the agency at (888) 405-4089.
Your withholding filing frequency is assigned based on your combined withholding tax liability (state and school district taxes) for the 12-month period ending on June 30th of the previous year. Filing frequencies include Quarterly, Monthly, or Partial-weekly. Refer to question 17 of the Department of Taxation FAQ article for deposit schedule details.
Finding unemployment account number and rate
The Ohio Department of Job and Family Services provides the Unemployment Compensation Tax Account Number, which can be found on:
1. The Determination of Employer's Liability (Form JFS 66314) or
2. The Contribution Rate Determination issued in November.
If you're uncertain about your account number, contact the agency at (614) 466-2319.
Additionally, you'll receive an Ohio Contribution Rate, also known as the unemployment tax rate, which can be located on:
1. This year's Determination of Employer's Liability (Form JFS 66314) or
2. The Contribution Rate Determination.
Owner's exemptions—unemployment tax
If your business has owners or officers with exemptions from Ohio unemployment insurance (UI) taxes, it's essential to exclude their wages from quarterly reports to the state. Failure to do so could lead to the rejection of your entire tax filing. To handle this, set up an exemption for the owner or officer in Niural to ensure accurate reporting.
To view or update owner or officer information on file with the agency:
1. Sign in to The Source with your personal username and password.
2. Under the "Your Account(s)" header, select Account Maintenance.
3. Under the "Employer Account" header, click on the Employer Maintenance link.
4. Under the "Other Information" header, select the Ownership Summary tab to review listed business owners.
5. To add, remove, or modify owners or their information, click Edit Ownership.
For clarification on which owners or officers should be marked as "exempt," it's recommended to contact the agency directly. Discrepancies between exemptions in Niural and those on file with The Source during return processing may result in filing rejections.
Note:
- Wages for officers of corporations, S-corps, or LLCs filing federal taxes as a corporation are generally taxable.
- Wages for sole proprietors, partners, or LLCs filing federal taxes as a sole proprietorship or partnership are generally not taxable.
Third-party authorization (TPA) requirements
To facilitate Niural's assistance in resolving tax-related issues, we need your authorization to appoint Niural as your third-party agent (TPA) for the Ohio Department of Job and Family Services' unemployment tax. To formalize this appointment, you are required to submit a notarized form authorizing Niural as your payroll provider to the specified agency. We will streamline this process by generating the necessary document for your electronic signature within Niural and subsequently submitting it directly to the agency.
Add Niural as your third-party agent in Ohio
The form will be prepared for your signature in Niural once the following steps are completed:
1. Add a company work address in Ohio.
2. Assign an Ohio work address to an employee’s work location in their profile.
3. Fill out the Ohio state tax setup information in Niural.
To sign the form in Niural:
1. Have the company signatory log in to their profile in Niural.
2. Click on the relevant Ohio to-do item from the Home page.
3. Electronically sign the auto-generated form in Niural.
Enter the tax account information in Niural
Once a valid Ohio work address has been added in Niural for one or more employee(s), you can add your tax account information:
1. Go to the Company details section in your Niural account.
2. Click on Tax Setup.
3. Select Edit on Ohio Tax Setup.
4. Enter your withholding account number and tax filing frequency here.
If you don’t have your agency-assigned rate, use the current year's "New employer rate" from here.
Update your rate in Niural only if it differs from the current one.
Local/municipality income taxes and tax credits
City taxes in Ohio are primarily determined by the location of an employee's workplace, necessitating employers to withhold taxes according to the work location. Generally, taxes are not withheld for the employee's home location; however, certain cities may require payment of resident (home) taxes. In such instances, employers are recommended to contact the relevant city authorities to complete the necessary registration process.
To locate the Municipality Name of your employee's city taxes, enter their work location(s) here. To find the contact information of the local tax collector for the municipality, click the hyperlink on the municipality name to go to the website for the tax collector.
In cases where employees live and work in different cities or municipalities, and both impose income tax liability, they typically qualify for a full or partial credit for the tax amount owed and paid to the city of residence. This provision prevents double taxation and ensures a fair distribution of tax responsibilities for such individuals.
Calendar year 2022: Personal tax returns must address tax credits.
Employees eligible for the credit must request a refund from their resident city tax, aligning with the approved credit, after filing their 2022 personal tax returns. This may involve submitting additional forms or documentation to initiate the refund from the city. It's important to note that Niural did not automatically apply these credits in payroll from July 8 to December 31, 2022.
Starting July 8, 2022, employees may have observed an increase in the taxes deducted from their paychecks to account for both work and residential taxes. Before July 8, 2022, Niural automatically applied credits in real-time within the payroll system, ensuring employees paid taxes only to the city where they worked, with the tax for their city of residence withheld after factoring in any applicable credits.
Calendar year 2023: Tax credits will be applied in real-time on payrolls
Starting with payrolls dated January 1, 2023, Niural will resume the automatic real-time application of credits.
Employee exemptions and verification
For mandated resident-city taxes:
- If an employee consulted a tax professional and prefers no withholding, set up a tax exemption in Niural.
For optional resident-city taxes:
- If an employee wishes to pay less tax to their resident city, remove courtesy withholding in Niural and pay estimated taxes.
Verification of local taxation:
- To confirm accurate residential tax withholding, employees can use the Ohio Tax Finder resource by entering their home or work address as listed in Niural,
- Employees needing to update their home address can do so in Niural, while employers must update work addresses.