State Representative Robert Sprague (R-Findlay) is urging employers in Ohio to begin using new state income tax withholding rates that take effect for payrolls ending on or after September 1st, allowing employees to benefit from tax cuts that were included in House Bill 59—the recently enacted state operating budget.
The tax cuts are part of a comprehensive tax reform package in the state budget, which also cuts small business taxes by 50 percent and increases the sales tax by one-quarter percent. The budget reduces income tax rates for Ohio workers by 8.5 percent in 2013, then by an additional half-percent in 2014 and an additional one percent in 2015 to yield a 10 percent tax cut by tax year 2015. Overall, the total tax-reform package will cut Ohioans’ taxes by $2.7 billion over the next three years.
“With employers taking advantage of the new rates, Ohio residents can receive more take-home pay right away, leaving more money in their pockets to spend as they see fit,” said Rep. Sprague, who is a member of the House Finance and Appropriations Committee. “The tax reforms that we enacted in the budget this year are meant to not only provide tax relief, but to make Ohio more competitive and strengthen our state’s overall economy.”
The lower withholding rates mean that Ohio employers should deduct 9 percent less state tax from workers’ paychecks beginning September 1st. The new rate, to be in effect through the end of 2014, incorporates the 8.5 percent tax cut for 2013 and the additional 0.5 percent cut in 2014.
Reduced withholding tables and how-to instructions are posted on the Ohio Department of Taxation’s website at www.tax.ohio.gov.
In Logan County, State Rep. Sprague represents Richland, Bokescreek, and Rushcreek townships.