Tax Rate and Interest Rate:

Current Tax Rate: 2%

The interest rate is calculated based on the federal short-term rate plus 5%. The rates are as follows:

Calendar Year 2020: 7% per year or 0.58% per month
Calendar Year 2021: 5% per year or 0.42% per month
Calendar Year 2022: 5% per year or 0.42% per month

Filing Frequency:

Monthly: Taxes required to be deducted and withheld shall be remitted monthly to the Tax Department, if the total taxes deducted and withheld or required to be deducted and withheld by the employer, agent, or Other Payer on behalf of the City of Piqua in the preceding calendar year exceeded $2,399.00, or if the total amount of taxes deducted and withheld or required to be deducted and withheld on behalf of the City of Piqua in any month of the preceding calendar quarter exceeded two hundred dollars. Payment shall be made so that the payment is received by the Tax Department not later than fifteen days after the last day of each month.

Quarterly: Any employer, agent of an employer, or Other Payer not exceeding the thresholds stated above shall make quarterly payments to the Tax Department not later than the last day of the month following the end of each calendar quarter.

Due Dates:

Monthly Filers: Monthly withholding payments shall be due on or before the 15th day of the month following the end of the withholding period.

Quarterly Filers: Quarterly withholding payments shall be due on or before the last day of the month following the end of the withholding period (April 30, July 31, October 31 and January 31)

Annual Withholding Reconciliation: On or before the last day of February of each year, an employer or other payer shall file an Annual Withholding Reconciliation (Form PW-3) including all corresponding Form(s) W-2 with the Income Tax Department.

Penalties and Interest:

Late Filing Penalty: A $25.00 late filing penalty shall be imposed for the failure to timely file a city withholding return or annual withholding reconciliation regardless of liability shown.

Penalty: A penalty shall be imposed for the failure to timely pay withholding tax and shall be equal to 50% of the unpaid withholding tax.

Interest: Interest shall be imposed for the failure to timely pay withholding tax. The rate is adjusted annually and is based on the federal short term rate, rounded to the nearest whole number percent, plus 5%. The imposition of interest shall be assessed per month or fraction thereof.