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Local Wages not on W-2

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Level 3

My client moved to OH (june 2019)  and works from his home in Shake Hts.  He was not aware that he needed to report local wages and his employer did not withhold taxes or report any local income on his W-2.  Shake Hts, Ohio utilized RITA and I am not sure how to report his local wages (equal to his OH wages) to calculate the taxes due.  Looking for assistance.

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Level 9
Level 9

Local wages will be the medicare wages (the highest on the W2) and he will owe Shaker Heights taxes (2.25%) on that.  I don't use ProConnect Online so if you are looking how to enter there I don't know.

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Level 15

Assuming you have already made the input to trigger a RITA return and chosen Shaker Heights as the city, all you need to do is the following under Income > Wages, Salaries, Tips (W-2), beneath the section State and Local > Ohio > Local Wages and Withholding Information:

  1. Choose Shaker Heights as the CITY NAME;
  2. Enter an amount as CITY WAGES (since your client relocated to OH only in June, this should just be the wages related to OH employment); and
  3. Enter both DATES EARNED FROM and DATE EARNED TO for the corresponding period these wages were earned (which will show up in Column 6 of Section A, RITA 37 - without these entries, PTO will assume it was earned between Jan 1 and Dec 31).

If you have not already created a RITA return, these are the steps you should follow for the correct residency and local wage earning periods to be reported:

  1. Under Profile, you must have first chosen both Shaker Heights and Non-taxing City as the city for OH;
  2. On the left panel, select State & Local > Taxes > OH Cities;
  3. On the input screen, under General Information, skip Resident city;
  4. Click on City in tiny prints in the top-right corner;
  5. Under Ohio Cities:
    1. click on the arrow next to Name of city and select Shaker Heights from the list;
    2. under Part Year Resident, enter Date moved into city (on whatever date in Jun); and
    3. Click on the + sign to create a new tab and repeat #5 for Non-taxing city but enter a date for Date moved out of city instead.
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