Now, the state law has changed and, your employer must withhold local income taxes based on where you are actually working. For those working from home, this could mean big, and sometimes complicated, changes, with a lot of dollars involved.
companies have been withholding city and village income taxes the way they normally did — based on where employees were working ahead of the pandemic.
Companies already often withheld for multiple municipalities for plumbers, electricians, construction workers and other traveling occupations.Q: Are there exceptions? So, if you live and now work in a village with 1% income tax, and used to work in a city with 2.5%, you can save the difference.For example, several cities such as Cleveland Heights, Shaker Heights and Lakewood only give partial credit for what is paid elsewhere. This leaves extra bills for commuters living in those cities – forcing them to pay taxes where they worked and, separately, where they live. Now, when working at home, taxes are owed to just one city.
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