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Taxation

 

Residents are asked to mail their city tax returns to: Tax Department, City of Parma, 6611 Ridge Road, Parma, Ohio 44129. The resident should include the W-2, along with other information needed to prepare only the resident’s city taxes. The Tax Department will then mail the completed tax returns back to residents and let them know what further action, if any, is needed.

The Tax Department is also encouraging residents to prepare city taxes using its new E-Filing system, Tax Connect Online (scroll down to see E-filing for City Taxes). A resident must know his or her active city tax account number to use the system.


Filing Due Date for Employee Withholding

Withholding remittance and payment must be received no later than the 15th of the month following the reporting period. SB 172 changed the quarterly withholding payment due date to the last day of the month following the end of the quarter.


Monthly and Quarterly Withholding Threshold
 
An employer must remit monthly if withholding in the previous calendar year exceeded $2,399 or if the amount required to be withheld during any month of the previous calendar quarter exceeded $200.

An employer can remit quarterly if the withholding is under the threshold described for monthly filers.


Penalty and Interest Rates

The late filing penalty is $25/month per return (capped at $150/return) regardless of liability. The penalty is a one-time $500 for casino operators and lottery sales agents.

Late payment penalty on withholding is a one-time 50 percent penalty of the unpaid balance at the time payment is due.

Late payment penalty on unpaid income tax and unpaid estimated income tax is a one-time 15 percent of the amount not timely paid.

Interest will be calculated at the July federal short-term interest rate, plus 5 percent. See the chart below for years and rates.


Calendar Year 


Monthly Interest Rate 


Yearly Interest Rate
 

 

2020

 

0.58%

 

7%

2019

0.58%

7%

2018

0.50% 

6% 

2017

0.50% 

6% 

2016

0.42%

5%



E-Filing for City Taxes

The Parma Tax Department offers Tax Connect Online. You are able to check and see what payments and/or credit you have on your current tax year or past tax years. You are also able to complete, file and pay your taxes online. Call 440-885-8045 or e-mail at taxoffice@cityofparma-oh.gov if you have questions. Click the link below to get started.

Tax Connect Online
Tax Connect has been upgraded. If you previously were registered, you will need to re-register using your active account number on the secured site. If you are a new user, you must go through the new user registration process.

Preferred browsers are Chrome, Firefox, Edge or Safari for Tax Connect: https://web2.civicacmi.com/ParmaTax

We accept Master Card and Visa credit/debit cards for payment.

 

Attention Business Withholder:
ACH Credit Electronic Filing

Parma Tax Department offers the ACH Credit Electronic Filing Program for withholding taxes. In order to be more efficient and business friendly, we offer electronic filing for withholding taxes.

Benefits to you:
The ACH Credit Program is available 24 hours a day, seven days a week. Your payments are processed conveniently and accurately via an electronic funds transfer.

Requirements:
To file using the ACH Credit Program, contact your bank to ensure the bank can process ACH credit transactions.

Enrollment:
To register, complete and mail or fax an ACH Credit Authorization Form.

Tax Rate

Parma’s tax rate is 2.5 percent.

For all employers who have employees working in Parma, you or your payroll service must withhold 2.5 percent on all wages for Parma City Income Tax.

Tax Credit

Parma’s tax credit for residents working outside of Parma is 100 percent of the first 2 percent withheld, but it can’t exceed the employment city tax rate.

For those employers that do a voluntary withholding of residence taxes, see Chart A below for rates.

Chart A
Work City
Tax Rate (%)
 0.00  0.50  1.00  1.35  1.50  1.75  2.00  2.25  2.50  2.85  3.00
Due To
Parma (%)
 2.50  2.00  1.50  1.15  1.00  0.75  0.50  0.50  0.50  0.50  0.50

If you have questions or need assistance, call 440-885-8045 and ask for a tax auditor.

Who Should File

Parma has a 2.5 percent city income tax with 100 percent credit of the first 2 percent withheld, but it can’t exceed the employment city tax rate. Every resident 18 years old or older and not retired is required to file a City of Parma annual tax return. If you are not sure if you should file an income tax return or if your income is city taxable, contact the Tax Department.

Extended Tax Hours and Due Date

The Tax Department is open Monday through Friday, 8:30 a.m. to 4:30 p.m. and will also be open from 8:30 a.m. to 6:30 p.m. on April 2, 7, 9, 14 and 15. The Tax Department will prepare City of Parma income tax forms for free during office hours. Taxpayers will need to bring the following items with them to the tax office:

  • Pre-printed tax form, which was mailed in January
  • All W-2s, 1099s, relevant schedules, etc.
  • Proof of payment to other cities, if necessary

Tax returns are due by Wednesday, April 15, 2020.

Downloadable Tax Forms Current Year

2020
2020 Business Estimate Form
2020 Individual Estimate Form
2020 Business Registration Fillable Form
2020 Individual Registration Fillable Form
2020 Monthly Withholding Form
2020 Quarterly Withholding Form
2020 Extension Payment Voucher
2020 Treasurer Report
Refund Request
ACH Credit Authorization Form
Landlord Reporting Form

Downloadable Tax Forms Previous Years

2019
1040 for 2019 Directional Guide
1040 for 2019
2019 Reconciliation Withheld


2018
1040 for 2018 Directional Guide
1040 for 2018
2018 Reconciliation Withheld

2017
1040 for 2017 Directional Guide
1040 for 2017
2017 Reconciliation Withheld

2016
1040 for 2016 Directional Guide
1040 for 2016
2016 Reconciliation Withheld

2015
1040 for 2015 Directional Guide
1040 for 2015
2015 Reconciliation Withheld

2014
1040 for 2014 Directional Guide 
1040 for 2014 
2014 Reconciliation Withheld

2013
1040 for 2013 Directional Guide 
1040 for 2013 
2013 Reconciliation Withheld

2012
1040 for 2012 Directional Guide 
1040 for 2012  
2012 Reconciliation Withheld

2011
1040 for 2011 Directional Guide
1040 for 2011
2011 Reconciliation Withheld

2010
1040 for 2010 Directional Guide
1040 for 2010
2010 Reconciliation Withheld

2009
1040 for 2009 Directional Guide
1040 for 2009
2009 Reconciliation Withheld

2008
1040 for 2008 Directional Guide
1040 for 2008
2008 Reconciliation Withheld

2007
1040 for 2007 Directional Guide
1040 for 2007
2007 Reconciliation Withheld

2006
1040 for 2006 Directional Guide
1040 for 2006
2006 Reconciliation Withheld

2005
1040 for 2005 Directional Guide
1040 for 2005
2005 Reconciliation Withheld

2004
1040 for 2004 Directional Guide
1040 for 2004
2004 Reconciliation Withheld

2003
1040 for 2003 Directional Guide
1040 for 2003 Page1
1040 for 2003 Page2
2003 Reconciliation Withheld

Documents are in an Adobe PDF format. You will need the free Adobe Reader Software to view these documents. You can download the software using this link.

Location

6611 Ridge Road
Parma, Ohio 44129

Hours

Monday - Friday  
8:30 a.m. - 4:30 p.m.

Contact

Phone: 440-885-8045
Fax: 440-885-8044
taxoffice@cityofparma-oh.gov  

Quick Links

Tax Connect Online 

Tax Rate 

Tax Credit 

Who Should File 

Extended Tax Hours and Due Date
 
Updated Parma News

Downloadable Tax Forms