Work from Home in Grove City OH

[moovas]

Hi,

I work from home in Grove City, OH which has city tax thats paid through RITA. I dont have an office location in Columbus and my employer is located out of State (in NY). However my employer deducts Columbus City taxes from my pay and my tax preparer asked me to pay RITA dues as well, which my employer does not collect. Do I have to pay both taxes while working from home in GC ?

[Hal_Al]

Q. Do I have to pay both Grove City and Columbus city taxes while working from home in GC ?

A.  No. It's not clear why your employer is withholding Columbus city tax. Was there a Columbus office at some time in the past? During Covid, your workplace city was allowed to continue withholding for the workplace city, when you worked from home.  But, that is no longer true.

Ask your employer to stop withholding Columbus tax and, if they are able, to start withholding for GC. 

You need to file a Columbus city return to get the erroneous withholding refunded.  Contact the city for special instructions for your situation.   (614) 645-3111

[moovas]

I was hired as a remote worker in 2022. I am not aware if my employer has an office in Columbus. Does it matter if they have or had presence there? In any case, I worked from home in Grove City all through 2023 and continue to do so this year. Should I ask for a full refund in Columbus or adjust the difference in rates between Columbus and RITA and ask for a refund in GC?

[Hal_Al]

Q. Does it matter if they have or had presence there (Columbus)?

A. No. It's just a possible explanation for the mistake.  A more likely explanation, they (your employer) just don't know any better. 

Q.  Should I ask for a full refund in Columbus or adjust the difference in rates between Columbus and Grove City/RITA and ask for a refund in GC?

A. A full refund from Columbus.  If an adjustment was due (and it isn't), it would be made on your Grove City return.*

* You normally only have to file a return in the city you live in. It is not necessary to file one in the city you work in, if different. Your employer will remit withholding to the city you work in, but you do not file a return unless you're claiming a refund or your employer didn't withhold enough ( both highly unusual). The city you live in will allow a credit or partial credit for the withheld tax you paid to the work location city. Grove City allows a 100% credit up to their 2% (Columbus is 2.5%).  But GC may not allow any credit, in your case, since the Columbus tax was (apparently) inappropriate.  

[Hal_Al]

You should verify that your address is in Grove City and not Columbus.

To verify or find out if you live in a school district or city with an income tax enter your address at:

http://www.tax.ohio.gov/Individual/LocalTaxInformation.aspx