Is city withholding tax based on employee work location or residence?
City withholding is based upon the employee’s work location (municipality) and employers are legally obligated to withhold to the requirements of that work location (municipality). Local tax is due first to the city where the income was actually earned. As a secondary factor, you may have an obligation to your city of residence. In the event you work in an unincorporated area or township that has no local tax, your entire local tax obligation is to your city of residence, in this case, Solon. Your mailing address, which is assigned by the U. S. Postal Service, does not always indicate the city limits within which you reside. Similarly, you cannot rely on your School District, because such entities do not always follow city boundaries. To determine the city in which a certain address is located, for example, Solon or Glenwillow, please call our office. Finally, if you are a registered voter, it should be easy for you to determine your city of residence.
