IMPORTANT NEW TAX INFORMATION FOR CHICKASAW RESIDENTS AND BUSINESSES WITH EMPLOYEES WORKING IN CHICKASAW
Effective October 1, 2022, the Village of Chickasaw will begin assessing a 1% income tax on certain types of income earned by residents of the Village, along with wages paid or income earned by nonresident individuals, and businesses that are performing services within the Village. This new income tax will be administered by the City of St Marys. A copy of these new tax regulations can be found at:
To quickly summarize the new Chickasaw Income Tax rules:
- For individuals living within the Village limits, income earned from wages, rental activities and business income will be subject to this tax. Retirement and investment income is not subject to tax. The Village of Chickasaw will not give credit for taxes paid on this income to another city. Chickasaw residents working outside of the Village may want to either inquire with their employer about withholding Chickasaw tax from their wages as a courtesy or remit estimated tax payments.
- For businesses with locations within the Village limits, income earned by the business is subject to the 1% income tax. Additionally, wages paid to all employees working within Chickasaw should be subject to a 1% withholding tax.
- For businesses located outside of the Village but with employees that performed work within the Village, to the extent that an employee is expected to work more than 20 days within the Village, the wages earned for work performed by that employee within the Village are subject to the 1% withholding tax. To the extent that an employee is not expected to work more than 20 days within the Village, no tax withholding is required.
The Ohio Municipal tax rules can be complicated, and we are sure there are many different scenarios that are not explained here. If you have any questions on these new regulations or require further assistance, please do not hesitate to contact us.