Long story short: I live in KY and, up until March 2020, I worked across the river in Cincinnati, OH. I now work from home full time. Up through the end of this year, I will have paid Cincinnati city tax and not local taxes for where I live in KY.
I received an email from my job that states "a change in legislation for 2022 requires taxes to be withheld based on where the work is being performed." Therefore, I have to fill out a form so that my local taxes shift from Cincinnati city taxes to taxes in my locality. I live in Fort Thomas, KY which is located in Campbell County. I want to be sure I understand some things about this. The email also stated "The Company does not provide tax advice. Employees should consult a tax professional for any specific tax questions." Nice how they ask you to update your taxes but then dodge answering questions.
Based on my current local taxes and adjusted gross income, I'm coming out to a Cincinnati city income tax rate of 2.1%. This source (
https://www.tax-rates.org/ohio/cincinnati-income-tax) agrees with that figure, but I also found this (
https://www.nfc.usda.gov/Publications/HR_Payroll/Taxes/Bulletins/2020/TAXES-20-28.htm) that shows 1.8%. I'm almost certain it's 2.1 though just based on the math.
For my new tax situation, I found this document (
https://campbellcountyky.gov/egov/documents/1634560298_03447.pdf). Page 2, column 1 seems to indicate that I have to pay both city and county taxes whereas in Cincinnati I only paid city, no county. If this is correct, the rate appears to be 1.05% for Campbell County and 1.25% for Fort Thomas giving a total of 2.3%, just a bit higher than Cincinnati. The math works out to about $174 more per year at my current salary.
Are these the correct rates? Is it correct that I do have to pay city+county in KY?
UPDATEAsked my boss about what specific actions I needed to take to make the change happen. Here is the exchange. I'm not sure what to think about this.
