06/01/2026
đ June is here⌠and so is everyoneâs favorite surprise payroll twist: Ohio school district withholding.
In Ohio (and a few other states), understanding local tax withholding isnât optionalâitâs essential.
And one of the biggest areas employers miss?
đ School district income tax withholding.
Missing itâor forgetting to file the SD 141 annual reconciliationâcan lead to penalties of $50â$500 per month đľđŤ
And yes⌠penalties can also stack at double interest on taxes owed or late payments.
đĄ The good news? You donât have to track all of this alone.
At Compass Payroll, we stay ahead of Ohioâs local tax requirements so you donât get caught off guard.
Our payroll specialists:
â Monitor school district and local tax updates
â Verify employee addresses using the Ohio Tax Finder
â Ensure proper withholding and compliance from day one
â Help prevent costly penalties before they happen
Check out Compass Payroll and all our services today at www.compasspayroll.com
or call 440-684-0539 to speak with a team member today