This page provides an overview of the Village of Fairfax Earnings Tax Requirements for businesses, not all regulations/policies can be covered here, see Tax Ordinance and Rules and Regulations on this website.

Please contact the Tax Department directly with any questions: 513-527-6506.

Hours: M-F 8:30 am – 4:30 pm

The Tax Department accepts walk-in’s and appointments during business hours.

Income tax rate 1.75%, effective April 1, 2004.

 

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2023 Tax Returns due by 4/15/24

Please send in all extensions, Federal 1065, 1120,1120S forms as well as supporting schedules and K-1 forms. Please be sure to include a statement of state and local taxes based on income. Including all of these forms reduces delays with the filing of your return.

When are forms sent?

At the end of January of each year, tax forms are mailed to registered residents and businesses of the Village. If you do not receive a form by mail, it is still your responsibility, whether individual or business, to file a tax return.  All Forms are at the bottom of this page.

Obtaining Forms

Forms are on this website and available in the tax office of the Municipal Building 8:30 AM – 4:30 PM Monday through Friday. You may e-mail us requesting a tax form.  If you do not receive a form by mail, it is still your responsibility, whether individual or business, to file a tax return.

Extension Requests Information

Extension requests should be filed before the due date to avoid failure to file notices being mailed. An extension (federal or otherwise) is only for filing the return not payment of tax due. Tax estimated to be due must be paid by the April 15th due date to avoid penalty and interest charges.

Who must file?

All businesses must file an annual tax return even if no tax is due until account is inactivated via a written request to the Tax Department.  Inactivation can be due to business sale, closure, merger, or move out; written request to inactivate must include reason, date, and contact information of business owner.  Businesses with employees working in the Village of Fairfax must submit an Annual Reconciliation of Withholdings form, and all employee W-2’s, as well as Local Data naming other cities for which taxes were withheld. The W3 & W2’s and any 1099 Misc. forms issued for work done in the Village of Fairfax must be submitted by the end of February.  Employers with over 20 employees are requested to electronically file using provided EFW2 formatting.  See the document section below.

Estimated Payment Due Date Requirements

Quarterly payments of estimated tax are required if the anticipated amount due is $200 or more.

1st quarter due on April 15th

2nd quarter due June 15th

3rd quarter due September 15th

4th quarter due December 15th (Net profit)

4th quarter due January 15th (Individual) of the following year.

Fiscal years change accordingly.

The total estimated tax paid by January 15th must equal the amount of tax paid the previous year or equal 90% of total due for the current tax year to avoid penalty and interest for late payment of estimated tax.

Balance Due/ Overpayment /Refund Information

Amounts under $10.01 will not be collected or refunded.  The $10.01 de Minimis threshold does not apply to amounts required to be withheld by employers. Refunds can take up to 90 days to process.

Lottery/Gambling Winnings

Lottery and gambling winnings are taxable – no minimum. Gambling losses may not offset gambling winnings unless the taxpayer is a professional gambler per IRS regulations.

Net Operating Loss

Beginning with losses incurred in 2018, a net operating loss may be carried forward for 5 years. For losses incurred in tax years 2018, 2019, 2020, 2021 and 2022, only 50% of the carried forward loss may be deducted in each subsequent year.

Withholding Filing Frequency

File either Monthly or Quarterly. Semi-Monthly is not required unless your company chooses to. Please be aware if your company elects Semi-Monthly filing, it will be held to the penalty and interest requirements for that frequency of filing. Unpaid Withholding Tax has a penalty equal to 50% of the amount not timely paid.  This penalty applies to any part of a month past due.

If withholding amount is $2,400 or more in the immediately preceding calendar year, or more than $200 in any one month of the preceding calendar quarter, file monthly – due date is the 15th day of the following month. All employers not required to file monthly, file quarterly – due date is the last day of the month following the end of the quarter.

Details are located in Ordinance No. 45-2019 Section V.052

Penalty Rate

Unpaid or late payment of estimated tax and/or income tax, the penalty rate is 15% of the amount not timely paid by January 15 of the following year. “Late filing” of tax returns shall be charged a monthly rate of $25 for each return not filed or filed late. The penalty shall not exceed $150 assessed on each return.

Unpaid Withholding Tax has a penalty equal to 50% of the amount not timely paid.  This penalty applies to any part of a month past due.

Interest Rate 

Interest rate for 2023 interest rate is 7% per annum (0.583% per month);

Interest rate for 2021 – 2022 interest rate is 5% per annum (0.42% per month);

Interest rate for 2019 – 2020 interest rate is 7% per annum (0.583% per month);

For a tax year beginning on January 1, 2022, the interest rate to be applied to unpaid estimated tax, unpaid income tax, and unpaid withholding balances is 5% per annum. This rate is being published in accordance with Ohio revised code 718.27 (f). This rate is effective from January 1, 2021, through December 31, 2022, and does not apply to tax balances for any prior years, regardless of when they are filed. This is in accordance with the Village of Fairfax Tax Ordinance 45-2019 section x.

Appearance Orders/Subpoena Information

This is not an appearance order/subpoena for Mayor’s court however, it can lead to a warrant for Mayor’s Court being issued if not addresses.

An appearance order/subpeona is for you to appear in the tax department with tax documentation and is the first step in the legal process.

If you have filed a Federal Extension, submit it to the Tax Department so late filing notices can be inactivated.

If you received an appearance order/subpoena and have already sent in your information, please call to ensure all documentation was included with your return and it has been received.

If you received an appearance order/subpoena and forgot to file call (513) 527-6506 or email [email protected], to set an appointment if you are unavailable the date of the appearance order/subpoena.  The Tax Department will work with you to complete the filing.

Ignoring attempts by the Tax Department to contact you to file, or pay, Village taxes can result in a warrant being issued for you.  See Ordinance 45-2019 Section XXV for more information.

Filing Business Returns/Reconciliations

All businesses unable to or do not elect under ordinance 45-2019 Section XXVI.01 to file with the Ohio Department of Taxation must file an annual tax return even if no tax is due.  At such time as you close your account for no activity in Fairfax or due to business closure/merger/move out you will no longer be required to file with Fairfax.

If you have employees working in the Village of Fairfax, you must also pay withholding tax on their wages and file a W3 or an Annual Reconciliation form that includes all employee W-2’s and other items listed on the form.

  • Business tax returns are due April 15th if operating on a calendar year, or on the 15th day of the fourth month after the close of the fiscal year.
  • Include a copy of the Federal Tax Return filed by your company. Also attach supporting schedules for items added or deducted on Fairfax Schedule X, (reverse side of return).
  • Sole proprietors may file on an “Individual Return” and attach Federal Schedule C.
  • Estimated taxes are due quarterly on an estimated liability of over $200.00. If you need an estimated tax form, see Forms below or call the Tax Office at (513) 527-6506. A form will be mailed or faxed to you.
  • Withholding on Employee Wages: Earnings Tax of 1.75% must be deducted by each employer on all wages earned in the Village of Fairfax.  Employee Withholding is submitted monthly if Withholding in any month of the preceding calendar quarter exceeded $200.00 or the total withholding for the prior year exceeded $2,999.00; or quarterly.  Quarterly payments are due on the last day of the month following the end of each quarter.  Monthly payments are due on the 15th day of the next month.
  • Annual Reconciliation of Withholding is due February 28 of each year. You must attach W-2’s or computer print out giving the same information for each employee and copies of any 1099 Misc. forms issued for work done in the Village of Fairfax. See form for all filing requirements.  Employers with over 20 employees are requested to electronically file using provided EFW2 Formatting.  See the document section below.

NET PROFIT TAXPAYERS ELECTING UNDER ORDINANCE 45-2019 SECTION XXVI.01 TO FILE FOR ALL MUNICIPALITIES THROUGH THE OHIO DEPARTMENT OF TAXATION

PLEASE READ ORDINANCE 45-2019 FOR ALL NEW REQUIREMENTS

WE WILL BE UNABLE TO ASSIST YOU WITH ANY ISSUE YOU HAVE WHEN FILING YOUR NET PROFIT RETURN IN ANY YEAR IN WHICH YOU HAVE MADE THIS ELECTION

Contact the Ohio Department of Taxation for assistance with these Net Profit Returns.

All others please continue to contact the Village of Fairfax at 513-527-6506 or via email at [email protected]

 

To view or print a form or document listed below, click on it

Instructions for EFW2 Specs

Electronic W2 Submission for Businesses

Ordinances

Ordinance 45-2019 (Current)

Previous

Tax Ord 21-2017 with Tax Code

Ordinance 32-2015

Amending 51-2008 Ordinance 34-2011

Ordinance 51-2008

Ordinance 10-2004

Forms

Business Registration Form– Note your Account number with the Village is your FEIN.

2024 Quarterly Net Profit Tax Form

Form F-REV App for Refund (For use by non-resident employees)

Tenant Update

2024 Quarterly Withholding Tax Form

2024 Monthly Withholding Tax Form

Annual Withholding Reconciliation

Net Profit Tax Return

Net Profit Return Instructions

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