Business FAQs
- Register online at CCA eFile
- To register by paper, complete this form and:
- Mail your correspondence to the following address:
Central Collection Agency
ATTN: Corporate Audit Department
205 W St Clair Ave
Cleveland, OH 44113 - Or fax the Corporate Audit Department at (216) 420-8338
- Mail your correspondence to the following address:
- Important Note: Withholding and Net Profit returns must be filed using the taxpayer’s Employer Identification Number (EIN).
- C-Corporations, Subchapter S-Corporations, and Partnerships, including LLC's and REIT's doing business within any CCA community are required to file the Net Profit form.
- Trusts with rental in a CCA community are required to file a CCA Net Profit form. However, trusts having only intangible income do not file with CCA. Tax-exempt organizations that file federal form 990-T for unrelated business taxable income.
- Individuals, including anyone filing a federal Schedule C (including sole proprietorships and single member LLCs), Schedule E or Schedule F with their Individual federal income tax return, must use the Individual CCA tax form.
Employers doing business within any CCA community with one or more employees must file and pay employment tax as defined in Ohio Revised Code (ORC) Section 718.
Each employer must also file an Annual Reconciliation (W-3) which serves as the transmittal statement for Forms W-2 for each employee from whom municipal tax has been withheld during the year. Filers must also submit copies of Forms 1099-NEC.
A valid federal extension request (Form 7004) must accompany the return when filed. The Ohio Revised Code now allows the extended due date for net profit returns to be the 15th day of the 11th month following the end of the tax year.
An extension only extends the time to file, not the time to pay any tax due. Payment of the tax after the original due date will be assessed a penalty & interest charge.
There are no Withholding or Annual Reconciliation (W-3) extensions.
Generally, amended returns must be filed within three (3) years from the original filing date.
If there is a change in the Federal income tax liability, as determined by the Internal Revenue Service or judicial decision, an amended form must be filed within three (3) months of the final determination.
Net Profit:
To amend a net profit tax return, mark the top of the net profit tax return “Amended”. An amended return must be filed to report additional income and pay any additional tax due or to claim a refund of tax overpaid. If the company has not amended its federal tax return, attach a brief statement explaining why the CCA Net Profit tax return was amended. A taxpayer may not change the method of accounting or apportionment of the net profit after the due date for filing the original return.
Withholding:
To amend a withholding or Annual Reconciliation (W-3) return, mark the top of the return “Amended”.
Please complete the “Final Return” options on the back of the Withholding and Net Profit return and submit to our office (if applicable). In addition, download and complete this form and submit it to our office.
Mail your correspondence to the following address:
Central Collection Agency
ATTN: Corporate Audit Department
205 W St Clair Ave
Cleveland, OH 44113
Charitable contributions may be deducted to the same extent allowed federally, if the business were filing as a C-Corporation only.
No. ORC section 718.01 requires partnerships to calculate their municipal taxable net profit as if the partnerships were C-Corporations. When one owner of a C-Corporation sells their ownership interest (stock) to a new owner, the C-Corporation does not take a deduction on its return related to that transaction. Therefore, a partnership cannot claim an IRC section 754 adjustment given the fact pattern above.
However, if a C-Corporation purchases an ownership interest in an existing partnership, the C-Corporation can claim the IRC section 754 adjustment on its return. Therefore, if a partnership purchases an ownership interest in an existing partnership, the purchasing partnership can claim the related the IRC section 754 adjustment on its return.
The IRC section 754 adjustment is allowed only on the return of the purchasing partner.
Consolidated tax returns may be filed by a group of corporations who are affiliated through stock ownership and who join in the filing of a federal consolidated income tax return. A consolidated return must include all subsidiaries.
An election to file a consolidated municipal Net Profit tax return is binding for a five-year period beginning with the first taxable year of the initial election unless a change in the reporting method is required under federal law. If the entity elects to discontinue filing consolidated and begin filing separate returns, permission from the Tax Administrator is required in writing prior to the due date of said returns.
Capital gains and losses from sale, exchange or other disposition of property shall not be taken into consideration in arriving at net profits earned. The Ohio Revised Code states to subtract Section 1221 or 1231 gains and add Section 1221 or 1231 losses when computing Adjusted federal Taxable Income.
Ordinary gains are taxable. A portion of the gain classified for federal tax purposes as IRC section 1250 gain is taxable. The taxable portion is normally referred to as depreciation recapture.
The Ohio Revised Code requires partnerships and S-Corporations to calculate their depreciation recapture as if these taxpayers were a C-corporation. C-Corporations must make the IRC section 291 adjustment when calculating their depreciation recapture on the sale of a section 1250 asset. Partnerships and S-Corporations add 20% of unrecaptured section 1250 gain on Schedule X of the Net Profit tax return for the section 291 adjustment. See the instructions for federal Form 4797 for further information regarding the sale of business property.
Adjustments for pass-through income are made on the “OTHER” lines on Schedule X - Adjustments to income per federal Tax Return (Form 120-17-BR - Net Profit Tax Return). Indicate the federal Identification Number of the business that originated the pass-through income. Include the name of the municipality to which the income was reported and provide a copy of the Form K-1 received. Do not include or take credit for tax paid by the business that generated the pass-through income.
No. The company cannot claim the full amount of the wage or other expenses on the municipal income tax return. ORC Section 718.01 defines taxable net profit and provides a list of the statutory adjustments that must be made when computing a taxpayer’s taxable net profit subject to apportionment. There is no statutory authority for any adjustment to reverse the reductions in federal expenses related to the various federal jobs and other credits. Therefore, by choosing to claim a federal tax credit, a taxpayer also chooses to reduce certain deductions for both federal and municipal tax purposes.
The work city has priority over the residence city. All employers are required to withhold tax when an employee works in a city which has a local tax. Some employers may be required to withhold tax for the city that the employee lives in when the employer performs work in more than one city.
Effective 2024, no withholding is required for employees under the age of 18 for any Ohio municipality. Prior to 2024, as a rule, most CCA municipalities did not require tax to be withheld on employees under age 18. However, exceptions to the 18 years of age or under exemption did exist prior to 2024.
Employers must remit monthly if 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.
The following CCA municipalities require semi-monthly withholding: Burton, Grand Rapids, Marble Cliff, Munroe Falls, North Baltimore, North Randall, Obetz, Paulding, Prairie Obetz JEDZ, and South Russell.
Monthly filings are due by the 15th day of the month following the end of the withholding period. Semimonthly filings are due on the 3rd banking day after the 15th day of the withholding period and the 3rd banking day after the last day of the withholding period. Quarterly filings are due on or before the last day of the month following the last day of each calendar quarter.
The Annual Reconciliation (W-3) and W-2s are due on the last day of February of the following year in which compensation was earned.
If you file 10 or more W-2 forms, you must file with CCA on electronic media. If you have 10 or more Forms W-2 and file using electronic media with the Federal Government, you are required to also file on electronic media with CCA. CCA submittal procedures may be found by selecting the Magnetic Media Specs found in the header at the top of this page. You may be charged a penalty if you fail to file Forms W-2 on electronic media when required. All employers are required to complete and submit a written reconciliation (W-3) form.