Effective September 1, new withholding tables will result in increased take-home pay for Ohio workers. Governor Kasich’s plan will lower the income tax rates 10% over the next three years with a majority of the decrease coming in 2013. In addition to the lower payroll withholding rates, small businesses will see tax savings of up to 50%. And while that’s great for payroll and businesses, Ohio will also see an increase in sales tax by .25%.
A brief description of the withholding rate change was released by Tax Commissioner Joe Testa on August 26th, and can be found at: http://www.tax.ohio.gov/Portals/0/communications/news_releases/NR_TaxWithholdingCut.pdf.
The Department of taxation released an update of the sales rates on their website at: http://www.tax.ohio.gov/sales_and_use/rate_changes.aspx.
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