Changes Coming to Individual Estimates and Employer Withholding in 2016
Pursuant to the passage of Amended Substitute House Bill 5 in December 2014, new State mandated municipal income tax guidelines have been established. These guidelines are effective beginning January 1, 2016.
Among the guidelines affecting Lakewood’s citizens in 2016:
- The threshold for declaring an individual estimate has been raised from $100.00 to $200.00.
- 2018 Update: Individual estimate due dates for tax year 2018 onward fall on April 15th, June 15th, September 15th, and January 15th.
- Employers may remit quarterly if withholding in the previous calendar year was between $1 and $2,399, or if the amount required to be withheld did not exceed $200.00 during any month of the last calendar quarter.
- Employers MUST remit monthly if withholding in the previous calendar year exceeded $2,399 or if the amount required to be withheld during any month of the previous calendar quarter exceeded $200.00.
- Withholding remittance and payment must be received no later than the 15th of the month following the reporting period.
Lakewood Continues Delinquent Tax Collection Efforts
Lakewood residents who have failed to file their tax returns could face criminal charges in Lakewood Municipal Court.
Through a special prosecutor appointed by the IRS, the city will begin filing charges starting in late 2015, using data obtained in a partnership with the City of Cleveland’s Division of Taxation and the Internal Revenue Service.
“It’s much easier for taxpayers to call the tax department to resolve these issues and get set up with a payment plan than it is to respond to a criminal filing,” said Patricia Chittock, the assistant finance director for the city’s Division of Municipal Income Tax.
The charge — failure to file a tax return — is a first-degree misdemeanor. Those found guilty face up to six months in jail and a $1,000 fine per tax return.
Those who haven’t filed are encouraged to call the Lakewood Division of Municipal Income Tax at 216-529-6620.