You are here: Home > Departments > Taxation

Taxation

 

Between April 1 and April 15, 2024, Parma taxpayers can drop off their annual returns to the Tax Department, where staff will complete their returns and then mail residents their copies. Residents must include their W-2s and all other information needed for city tax returns. They will be notified if further action is needed.

The Tax Department also encourages residents to prepare city taxes online using Tax Connect (scroll to see E-Filing for City Taxes). A resident must know his or her active city tax account number to use the system.

E-Filing for City Taxes

The Parma Tax Department offers Tax Connect Online. Residents can see what payments and/or credit they have for the current tax year or past tax years. Residents can also complete, file and pay taxes online. Call 440-885-8045 or e-mail taxoffice@cityofparma-oh.gov for more information.

Get Started with Tax Connect
Preferred browsers: Chrome, Firefox, Edge or Safari
Master Card and Visa credit/debit cards are accepted for payment.

Residents can also mail their city tax returns to: Tax Department, City of Parma, 6611 Ridge Road, Parma, Ohio 44129.


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

The late payment penalty on withholding is a one-time 50 percent penalty of the unpaid balance at the time the 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 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
 

     
 2024   0.83 percent  10 percent 
2023  0.58 percent   7 percent 
2022
0.42 percent
5 percent
 2021   0.42 percent   5 percent 
 2020   0.58 percent   7 percent 
 2019   0.58 percent   7 percent 
 2018   0.50 percent   6 percent 
   

   

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. Payments are processed conveniently and accurately via an electronic funds transfer.

Requirements:
To file using the ACH Credit Program, residents should contact their banks to ensure their banks 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 employers who have employees working in Parma, they or their payroll service departments 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 credit, up to 2 percent for city taxes paid to another community.

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

For 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. Residents who are not sure if they should file income tax returns or if their income is city taxable, they can contact the Tax Department for assistance.

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, 4, 9, 11 and 15. The Tax Department will prepare City of Parma income tax forms for free during office hours. Between April 1 and April 15, taxpayers will only be able to drop off their annual returns. Taxpayers will need to bring the following items 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 for 2023 are due by Monday, April 15, 2024.

Current Year Downloadable Tax Forms

2024
Business Estimate Fillable Form
Individual Estimate Fillable Form
Business Registration Fillable Form
Individual Registration Fillable Form
Monthly Withholdings Form
Quarterly Withholdings Form
Treasurer Report
ACH Credit Authorization Fillable Form
Landlord Reporting Fillable Form
Refund Request Fillable Form

Previous Years Downloadable Tax Forms

2023
1040 for 2023 - Directional Guide
1040 for 2023
2023 Reconciliation Withheld Fillable Form

2022
1040 for 2022 - Directional Guide
1040 for 2022
2022 Reconciliation Withheld Fillable Form

2021
1040 for 2021 - Directional Guide
1040 for 2021
2021 Reconciliation Withheld Fillable Form

2020
1040 for 2020 - Directional Guide
1040 for 2020
2020 Reconciliation Withheld Fillable Form

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


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

Documents are in an Adobe PDF format. Free Adobe Reader Software is needed to view these documents and can be downloaded here.

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