Employers have a legal duty to withhold and remit city tax to the municipalities in which their employees work. Employees may also have a liability to the municipality in which they reside. Form OW-1 provides for reporting and remitting the tax due to the city of employment and, if applicable, any additional tax due to the employee's city of residence.

Effective January 1, 2016, employers must withhold and remit payroll withholding tax on qualifying wages as defined in Oakwood Municipal Income Tax Ordinance Section 148-1.03(34) or Ohio Revised Code Section 718.01(R), unless specifically exempted under Ordinance Sections 148-1.051 and 148-1.052.

TAX RATE: The City of Oakwood's income tax rate is 2.5%.

WITHHOLDING REMITTANCE FREQUENCY: Monthly remittance is required if your prior calendar year withholding exceeded $2,399.00 or any month of the current year's preceding quarter exceeds $200.00. All others may remit quarterly.

WITHHOLDING REMITTANCE DUE DATE: Due dates are as stated above. Remittances postmarked by the respective due dates will be considered timely filed and paid. If the due date falls on a weekend or federal holiday, the effective due date is the next business day.

LATE FILING PENALTY: The late filing penalty charge is $25.00 per month up to a maximum of $150.00.

UNDERPAYMENT PENALTY: The underpayment penalty charge for late payment of the tax is 50% of the unpaid tax.

INTEREST: All taxes due to the City remaining unpaid after they become due are subject to interest at an annual rate of 7.0% during calendar year 2019.