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OH and KY Taxes

edited August 2010 in General Payroll Topics
We spend an enormous amount of time reporting and paying withholding taxes for cities, counties, tax districts, etc. in OH and KY. Is there an easier way than to do them individually? For example, a central clearing house where we can enter everything one time?

Thanks.

Comments

  • I think that is called a payroll service provider (PSP). Unfortunately local taxes are pretty petty. In NC I joke that we seem to have an awful lot of people employed at the state and local levels simply to collect nickels and dimes to pay their own salaries. The problem is a thing called "local control" - once you get a "central clearing house" (ie the state) the localities start to complain that they lose local control over the money and it becomes a voter issue.

    On a side note, it happened in Michigan and it just happened again here in NC - every year I would go into the township office and jokingly offer to pay $50 if I did not have to fill out the personal property tax forms (business property). Every year my tax bill came in around $34. This year in NC (my first year of liability here), I did the same thing at the county level. When my bill arrived, it was a whomping $24.29. I think it costs them more to process the paper than that, but don't tell them I think so or they may tack on a minimum processing fee (grin). I have seen count personal property tax statements for motor vehicles (separate from the state license fee) for as little as $4.95. Now you can't tell me it does not cost the county more to mail the bill and collect the money than they collect in that case.

    While I am on this rant - perhaps this is because, until recently, accounting courses were not required to earn a degree in public administration (and last time I checked, were not required for degrees in education administration).
  • I can't help with Kentucky, but Ohio has the Ohio Business Gateway that you can use to electronically file many things. Currently I use it to pay State, School District, some municipalites, Ohio Dept of Job and Family, CAT tax, Sales tax, and Unclaimed funds.

    http://business.ohio.gov/
  • Hello Jenny - that sounds like exactly what is needed for Ohio - which I have never had the misfortune to have to deal with except as a 1040 preparer.

    bstout -
    I checked KY (again, not had to deal with that state except from a 1040 standpoint) and there is an organization called the Kentucky Occupational License Association - website at http://www.kyola.org - there is a thirteen page list of who to send the money to - no indication of a clearing house, but it might be worth contacting them to see what may be out there.

    Perhaps there is a business opportunity there for someone.
  • edited August 2010
    JOhio wrote:
    I can't help with Kentucky, but Ohio has the Ohio Business Gateway that you can use to electronically file many things. Currently I use it to pay State, School District, some municipalites, Ohio Dept of Job and Family, CAT tax, Sales tax, and Unclaimed funds.

    http://business.ohio.gov/

    In addition to the Ohio Business Gateway for Ohio municipal taxes there is also RITA (Regional Income Tax Agency ) and CCA (Central Collection Agency) that collect municipal taxes for many municipalities in Ohio. RITA covers a broad range of municipalities across the entire state. I believe CCA covers mostly North East Ohio municipalities.

    Links to their websites:

    RITA: http://ritaohio.com/business/formsandinstructions.htm

    CCA: http://www.ccatax.ci.cleveland.oh.us/mframe.asp


    The Ohio Business Gateway is definitely the way to go if they collect the municipalities that you are paying since as JOhio stated above you can also use it to pay other payroll and business taxes. Unfortunately I don't think there is one agency that you can go to pay all municipal taxes in Ohio, you have to find out which one your particular municipality works with (and in some cases it is none of the above).

    Welcome to the world of Ohio taxation. And they wonder why businesses are fleeing the state in record numbers!
  • I forgot, the City of Columbus collects municipal taxes for several municipalities in their area as well.

    As for Kentucky, I am not aware of any one agency that collects all of the various Occupational License fees either. Some of the larger counties like Kenton County and Campbell County in northern Kentucky collect for some (not all) of the cities within their boundaries as well as their own occupational license fees.

    Local taxes in Ohio and Kentucky are a real pain in the neck!
  • Local taxes in Ohio and Kentucky are a real pain in the neck!
    I understand the situation is similar in PA - what is it with that latitude? Or is it something in the Ohio River?
  • The funny thing, I have only done Ohio taxes, so I never really thought anything of it. :D Then I joined APA and started going to chapter meetings and people started talking about how Ohio taxes are a pain in the rear.

    RITA does collect for many municipalities. And you can actually report and pay RITA thru the Ohio Business Gateway.
  • The funny thing, I have only done Ohio taxes, so I never really thought anything of it.

    Once you have been in Hell's Kitchen, everyplace else seems cool by comparison. :twisted:

    I believe that for teaching certain accounting topics - I've noticed that if I teach the periodic inventory method first, the perpetual method is really easy to teach. But if the perpetual method is taught first, it seems just as difficult for the students to grasp as the period was - and it is very difficult for them to learn periodic.

    The good news is that if you ever go anywhere else, the job will seem much easier. :wink:
  • Sorry, guys, but no state can beat PA when it comes to local taxes. :P

    School districts, earned income taxes, and Local Services tax. And for the majority of jurisdictions, it's a one-to-one correspondence. We do have Berkheimer Associates, which is a private firm to whom the taxes are paid and distributes them to the jurisdictions, but that's only if the school district/locality contracts with them for this service.

    http://munstatspa.dced.state.pa.us/Registers.aspx :o
  • I agree with pattypa, Pennsylvania is the worst. I have done payroll in almost every state of the union and I would never live or work in PA.

    Just the taxes for Philadelphia alone would make me want to move. They are more than what is withheld for state. That is just crazy!

    If I ever do move east NH is the place to be - no withholding, no sales tax! I wonder how they manage that?
  • DeeDee wrote:
    If I ever do move east NH is the place to be - no withholding, no sales tax! I wonder how they manage that?

    Probably a gazillion percent property tax. :P
  • If I ever do move east NH is the place to be - no withholding, no sales tax! I wonder how they manage that?

    Also, they get money from the federal government for certain things (e.g. Medicaid) - just as all the other states do. Education property tax was 2.135 mils for 2009

    http://retirementliving.com/RLstate2.html#NEW%20HAMPSHIRE
  • And NH probably spends a lot of that money clearing the roads in the winter.

    No thank you, I've had enough snow to last me for quite a while. :roll:
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