In 2020, the COVID-19 pandemic shifted the location of work for many residents and local employees. For those who have changed their physical work location, the State of Ohio has changed the way you may pay your municipal income taxes. Learn more about what this could mean for you in 2022.
Working from home? Here’s what you need to know.
Prior to the pandemic, State law required employers to withhold city income taxes for the place where the work was performed. This means if someone worked in Columbus and lived in Grove City, the individual paid Columbus income taxes. When many employees began working from home during the pandemic, the General Assembly temporarily allowed employers to continue to withhold for the city where the work was performed prior to the pandemic. This was known as the primary place of employment. This temporary accommodation for employers ended as of Dec. 31, 2021. This means employers will return to withholding city income tax based on where the work is performed. For many, this is now their home city, or may be a hybrid of their home city and the city in which their employer’s office is located.
What if I reside and work in Grove City?
Great! You do not need to change anything. If your employer is based anywhere but Grove City and you are working from home, please ask your employer to begin withholding taxes for Grove City. Even if you do not work from home every day, your employer is required to withhold income taxes for Grove City on the days you work from home.
Will I have to file multiple income tax returns if I work from the office in one city and from home in a different city?
In most cases no, you are not required to file multiple returns. Keep in mind that Grove City residents are required to file an annual income tax return with the Regional Income Tax Agency (RITA), accessible on the RITA website, whether your employer’s primary location is Grove City or elsewhere. Even if your withholdings are for another jurisdiction, you must file a return through RITA due to your Grove City residency.
If I’m paying income taxes, does it really matter who I pay it to?
Yes! In Ohio, each city is funded primarily through the income taxes paid by those who work and live there. A City’s funding to provide paved streets, upgraded infrastructure, emergency services, snow removal and more rests on the income received from those who live and work there. Ensuring your employer is paying taxes to the proper entity makes a difference in the City’s fiscal capacity to provide services. The City needs your help to be certain your tax information is correct. Some employers may continue withholding in accordance with your pre-pandemic status, but we ask everyone to comply with State law by confirming your arrangement with whoever handles payroll for your employer.
What if I need clarification to talk to my employer or have questions about my specific arrangement?
RITA collects income tax for the City of Grove City. Contact RITA at 1-800-860-7482 or visit the RITA website.