Annual Reconciliation

Municipal Income Tax Law Affects Tax Year 2016

The State of Ohio made significant changes to the Ohio municipal income tax laws (Chapter 718 of the Ohio Revised Code.) The following summarizes how these changes affect your Annual Withholding Reconciliation.

Reporting Requirements:

On or before the last day of February of each year, an employer or other payer shall file an Annual Withholding Reconciliation (Form KW-3) including all corresponding Form(s) W-2 with the Income Tax Division. Listed below are options offered by the City of Kettering to efficiently file your Kettering W-2 records and Annual Withholding Reconciliation.
Note: Section 192.051(H)(3) of the City of Kettering Income Tax Code requires all employers filing 250 or more Forms W-2 with the Social Security Administration to likewise file that same year’s Forms W-2 with the City of Kettering in electronic format.
New! Employers must now report for each employee with Kettering tax withheld from wages the total amount of tax withheld and the name of every other municipal corporation for which tax was withheld for the tax year.

Late Filing Penalty

New! A late filing penalty will be imposed at the rate of $25.00 per month or fraction thereof (not to exceed $150.00) for the failure to timely file an Annual Withholding Reconciliation.

Form W-2 Reporting – Acceptable Electronic Formats

1. On CD-ROM using the Social Security Administration’s (SSA) Specifications for Filing Forms W-2 Electronically (EFW2). For layout specifications (includes other taxing entity codes.)
2. On CD-ROM using a spreadsheet program (such as Excel) that follows our proprietary comma delimited format. For layout specifications  (includes other taxing entity codes.)
Note: Employers who submit W-2 records on CD-ROM as specified above must also complete the Form KW-3 City of Kettering Annual Withholding Reconciliation and Form 1099 Misc. Earnings Report to attach to the CD-ROM containing the corresponding W-2 records.
When submitting media, please be sure to affix a label to the outside of each CD-ROM or diskette that contains the following information:
• Company Name, Address and Phone Number
• Federal Identification Number
• City Account Number
• Tax Year Reporting
3. Employers who use the City of Kettering Webfile Program to file and pay their withholding tax via ACH Debit may also electronically submit their Annual Withholding Reconciliation and W-2 records using the Webfile Program. Note: The W-2 file must be in one of the two acceptable electronic formats specified above.
4. Employers who are not required to file their Kettering W-2 records electronically may submit their wage information and Annual Withholding Reconciliation (Form KW-3) in paper format.  Access the City of Kettering Annual Withholding Reconciliation. Once the form is complete, print a copy to attach to all corresponding W-2 forms and mail to the Tax Division.

Form 1099-MISC Reporting

All taxpayers who issue Forms 1099-MISC to individuals or entities for services performed shall also report such payments to the City of Kettering when the services were performed in Kettering.
The information may be submitted to the Tax Division on a listing that includes all identifying information of the recipients and the amount of payments made to each. Forms 1099-MISC may be submitted in lieu of such listing.
All files should be submitted to the City of Kettering Tax Division, P.O. Box 293100, Kettering, OH 45429-9100. If you have any additional questions, you may contact our office at (937) 296-2502.
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