Consultants and City Income Taxes in Ohio?

Question

Hello, I have a small S-Corporation in Kansas and I sent an employee to Willoughby, Ohio to do a day of web site consulting work. I learned, much to my surprise that this town has an income tax of 2%. Do I need to send Willoughby a withholding payment?

Answer 1

Call Willoughby and ask.

Keep in mind, if you do make the payment and file the report, your employee is covered.  If you don't, the reporting and taxing obligation shifts to him--and there is no statute until somebody files.

Many cities are now aggressively collecting on past city taxes owed.  People all over the country are getting letters saying they owe for 10 years ago, plus penalties and interest.