Attention Ohio employees!!! Your paycheck is about to get a little bit bigger!
The Ohio Department of Taxation recently released updated Ohio withholding tables to be used for payroll beginning September 1, 2021.
The updated tables reflect the income tax rate reductions outlined in Ohio House Bill 110 and provide a 3% reduction from the current withholding rates.
What does this mean for Ohio employees? A reduction in Ohio withholding, and a bigger net paycheck.
Let’s look at an Ohio employee who makes $40,000 per year and claims 0 withholding exemptions. Under the previous withholding tables, this employee would have approximately $930 withheld through payroll each year.
Under the updated withholding tables, the annual withholding drops to around $900, a 3% decrease in Ohio withholding.
Are you curious about your personal tax situation? Both the previous and new withholding tables are available through the Ohio Department of Taxation. Visit https://tax.ohio.gov/wps/portal/gov/tax/business/resources/employer-withholding to download the withholding charts and see how much bigger your paycheck will be!