RITA FastPay Tax Type: Which Option Do W‑2 Employees Choose?
Short answer: Individual Income Tax (SSN). "Employer Withholding" is for businesses only — selecting it as a W‑2 employee can strand your payment and trigger automatic penalties. Here is everything you need to pay correctly.
⏱ Estimated reading time: 9 minutesQuick Answer: Which Tax Type to Choose
Paying your personal tax balance, estimated tax, or a bill? Select "Individual Income Tax" and enter your Social Security Number (SSN). This applies to W‑2 employees, sole proprietors, and all individual residents.
"Employer Withholding" is exclusively for businesses using a Federal Employer Identification Number (FEIN) to remit payroll taxes they collected from employees. It is never the right choice for personal payments.
Use the decision matrix below to confirm your correct FastPay selection before you click submit. Find your row, then look right.
| Your Situation | Correct FastPay Tax Type | ID Number to Enter | Relevant Form |
|---|---|---|---|
| W‑2 Employee — paying annual tax balance | Individual Income Tax | SSN | Form 37 Annual Return |
| Individual — quarterly estimated tax | Individual Income Tax | SSN | Form 32 EST‑EXT Voucher |
| Taxpayer — paying a RITA billing notice | Individual Income Tax | SSN or RITA Account Number | Form 06 Billing Voucher |
| Sole Proprietor — Schedule C net profit | Individual Income Tax | SSN | Form 37 Schedule J |
| Business — remitting employee payroll tax | Employer Withholding | FEIN | Form 11 (Monthly/Quarterly) |
| Employer — remitting courtesy residence tax | Employer Withholding | FEIN | Form 11 Withholding Statement |
| Corporation / Partnership — net profit tax | Net Profit Tax | FEIN | Form 27 Business Return |
Selecting "Employer Withholding" as a W‑2 employee routes your funds into a business ledger indexed by FEIN. Because your personal account is indexed by SSN, the payment becomes unmatched — it sits in a suspense bucket while RITA's automated system flags your personal account as delinquent. You sent the money; RITA just cannot find it. The result: non‑filing letters, delinquency notices, and statutory penalties under ORC §718.27, even though your bank shows the payment cleared.
What Each FastPay Drop‑Down Option Actually Means
RITA's FastPay portal routes every payment into a separate accounting ledger inside the RITAX® processing database. Choosing the wrong ledger does not cancel your payment — it just sends it somewhere your personal account will never see. Here is what each option covers.
Individual Income Tax
Who it is for: Residents, W‑2 employees, sole proprietors filing Schedule C, retirees, and anyone submitting a personal municipal tax return (Form 37), quarterly estimated payments (Form 32), or a billing voucher (Form 06).
Identifier required: Your Social Security Number (SSN). The RITAX system uses SSN as the primary key to link your payment to your annual filing record. There is no substitute entry for ITIN holders — they must file and pay via paper.
Employer Withholding
Who it is for: Businesses that withhold municipal income tax from employee wages and remit it to RITA using Form 11. This includes both standard payroll withholding (work‑city tax) and courtesy withholding (residence‑city tax for employees working elsewhere).
Identifier required: A Federal Employer Identification Number (FEIN). This is a strictly business‑facing ledger. Selecting it as an individual taxpayer — even one who is "withholding" the meaning of the word from their paystub — is always incorrect.
Net Profit Tax
Who it is for: C‑corporations, S‑corporations, partnerships, and multi‑member LLCs paying business net profit tax via Form 27.
Important distinction: A sole proprietor reporting self‑employment income on Schedule J of Form 37 does not use this category. Sole proprietors file and pay as individuals, using "Individual Income Tax" with their SSN — even if their business earns significant profit.
If you own a business but file as an individual (no corporation, no partnership), you use Individual Income Tax + SSN. Net Profit Tax + FEIN is for entities that file a separate business return (Form 27). When in doubt, look at how you filed your federal return: Schedule C on your personal 1040 means Individual Income Tax on FastPay.
Why W‑2 Employees Get Confused by "Withholding"
This is FastPay's most common error, and the root cause is a vocabulary collision between two completely different uses of the same word.
Your W‑2 shows "Local Tax Withheld" in Box 19. That describes the tax your employer already deducted from your paycheck and sent to the municipality on your behalf — past tense, done, handled. When you log into FastPay, you are not redoing that transaction. You are paying a separate personal balance: your annual return shortfall, an estimated quarterly installment, or an amount on a RITA billing notice. That is an individual income tax payment, not an employer withholding remittance.
The confusion is understandable. The phrase "withholding" appears on your W‑2, and "Employer Withholding" appears in the FastPay drop‑down. But these refer to opposite ends of the same transaction: your W‑2 documents what your employer already sent; "Employer Withholding" on FastPay is where an employer would go to send more. You are not an employer. You are an individual paying a personal balance.
Ask yourself: Am I using my own SSN and paying something I personally owe? Yes → Individual Income Tax. Am I using a company FEIN and remitting tax money I collected from employees? Yes → Employer Withholding. If you have to think about which FEIN to enter, you are on the employer side. If you are reaching for your Social Security card, you are on the individual side.
First‑time filers in RITA municipalities — Springdale, Beverly, Apple Creek, and nearly 400 others — are especially prone to this mistake because they have never navigated a municipal tax portal before. The federal system automatically handles withholding reconciliation through your 1040; RITA requires a separate manual payment step that many people do not expect.
Step‑by‑Step Walkthrough: Paying Through RITA FastPay
Follow these steps in order. Each one has a consequence if skipped.
- Navigate to FastPay on the RITA website — Go to ritaohio.com and select the FastPay guest payment option. You do not need a MyAccount login or password to use FastPay.
- Select the correct tax type from the drop‑down — Use the decision matrix above. For almost every individual: "Individual Income Tax." For businesses remitting payroll: "Employer Withholding." Do not proceed until you have confirmed your selection.
- Enter your identification number — Individuals enter their SSN. Businesses enter their FEIN. ITIN holders cannot use FastPay and must submit paper forms directly to RITA.
- Select your tax year and enter the payment amount — Match the tax year exactly to the return or voucher you are paying. Mismatched years create the same allocation problem as a wrong tax type.
- Choose your payment method — ACH checking or savings is free. Credit card (Visa, MasterCard, Discover) carries a mandatory 2.75% third‑party processing fee that RITA does not waive. Debit cards processed as credit also incur the fee.
- Review every field before submitting — Confirm: tax type, SSN or FEIN, tax year, municipality, and amount. Click submit once only.
- Save your confirmation number immediately — Screenshot it or write it down. This is your proof of payment and is required for any allocation correction requests.
FastPay payments run through daily ACH batch processing. Your RITAX account ledger will not update instantly. Wait the full 3‑ to 4‑business‑day window before assuming a problem — and do not submit a second payment during that window, as duplicate payments require a separate correction request.
TurboTax & H&R Block: The Hidden Voucher Trap
Millions of Ohio residents use TurboTax or H&R Block to prepare their federal and state returns. Many assume those programs also handle their RITA municipal tax payment. They do not.
TurboTax does not transmit payments to RITA. Even if it prepares or e‑files your municipal return, it will produce a Form 06 billing voucher showing the amount you owe. That voucher is not a payment. It is an instruction for you to pay separately. Thousands of Ohio residents each year ignore this voucher, assume the tax was paid as part of e‑filing, and later receive a delinquency notice plus a 15% late payment penalty.
If TurboTax or H&R Block generates a Form 06 for you, here is exactly what to do next:
- Go to ritaohio.com and open FastPay.
- Select "Individual Income Tax" from the tax type drop‑down.
- Enter your SSN and the exact dollar amount from your Form 06 voucher.
- Choose ACH (free) or credit card (2.75% fee) and complete the payment.
- Save your FastPay confirmation number alongside your TurboTax filing records.
This two‑step gap — filing with the software, paying separately via FastPay — is the single largest source of avoidable RITA delinquency notices among individual filers.
What to Do If You Already Chose the Wrong Tax Type
Wrong tax type submitted — do not panic, and do not submit a second payment. There is an official correction path.
Why the payment is "lost" but not gone
When you select "Employer Withholding" for an individual payment, FastPay deposits your money into a FEIN‑indexed business ledger. RITA received the funds, but they cannot automatically move to your SSN‑indexed personal account because the two ledgers are separate systems. The money sits in a suspense state. RITA's automated compliance system simultaneously flags your personal account as having an unpaid balance, which triggers outbound letters.
Recovery steps
- Do not submit a duplicate payment. Your funds are in RITA's system. A second payment doubles the correction work.
- Submit a "Request for Allocation of Payments" form. This is RITA's official administrative document for redirecting a credit from one ledger or municipality to another. It is available directly through the RITA office or by contacting their support line.
- Include proof of payment with your request. Attach your FastPay confirmation number, the payment amount, the date, and a brief explanation of which tax type you erroneously selected and which one was correct.
- Request penalty abatement if a notice arrived. RITA has discretion to abate first‑time penalties for reasonable taxpayer errors, particularly for new filers. Reference the allocation request in your abatement letter.
If you selected the correct tax type (Individual Income Tax) but paid to the wrong RITA municipality — for example, you paid Cincinnati instead of Springdale — the same "Request for Allocation of Payments" form redirects the credit. Include both the incorrect and correct municipality names in your request.
Penalty Rules Under ORC §718 — Why the Tax Type Matters Legally
Ohio Revised Code Chapter 718 governs all municipal income tax obligations statewide. The penalty structure it establishes is not uniform across tax types — which is exactly why selecting the wrong FastPay option carries real financial risk beyond just a misallocated payment.
Quarterly estimated tax requirement (ORC §718.08)
Under ORC §718.08, individuals who expect to owe $200 or more in municipal income tax after subtracting withholding credits must make quarterly estimated payments. These payments are submitted as "Individual Income Tax" using Form 32 EST‑EXT vouchers. Quarterly deadlines are April 15, June 15, September 15, and January 15 of the following calendar year.
Penalty differential (ORC §718.27)
ORC §718.27 establishes uniform penalty caps across all Ohio municipalities, but the rate depends on which tax obligation went unpaid:
| Tax Category | Applicable Form | Late Payment Penalty | Interest Rate |
|---|---|---|---|
| Individual Income Tax | Form 37 Annual Return | 15% of unpaid balance | Federal short‑term rate + 5% |
| Employer Withholding | Form 11 (Monthly/Quarterly) | 50% of unpaid balance | Federal short‑term rate + 5% |
The federal short‑term rate is set quarterly by the IRS; you can verify the current rate at IRS.gov — Interest Rates. For municipal tax purposes, RITA adds 5 percentage points to that rate for both categories. Use the RITA Penalty & Interest Calculator to estimate exactly how much you owe on an overdue balance.
An employer who accidentally routes payroll remittances under "Individual Income Tax" faces the same misallocation problem — and when the Employer Withholding account shows an unpaid balance, the 50% statutory penalty applies. This is not an administrative technicality. Under active ORC enforcement, it is a real financial liability that has affected businesses that simply used the wrong FastPay selection.
Frequently Asked Questions
What tax type do I select on RITA FastPay for W‑2 income?
Select "Individual Income Tax." Even though your W‑2 box 19 shows "local tax withheld," that describes what your employer already paid on your behalf. When you log into FastPay, you are paying your remaining personal balance. Enter your SSN.
What happens if I accidentally select Employer Withholding on RITA FastPay?
Your payment routes to a business ledger indexed by FEIN. Since your individual account is indexed by SSN, the funds remain unmatched and your personal account shows a delinquency. RITA's automated system may issue penalty notices even though the money is technically in their possession. Submit a "Request for Allocation of Payments" form to move the funds to your personal account. Do not send a second payment.
Does TurboTax automatically pay my RITA municipal tax?
No. TurboTax prepares your return and may e‑file it, but it does not transmit payment to RITA. It generates a Form 06 billing voucher showing what you owe. You must pay that amount separately via FastPay (Individual Income Tax, SSN) or by mailing a check to RITA. Treating the e‑file confirmation as proof of payment is the most common cause of unintended delinquency among individual filers.
Do I enter my SSN or FEIN on RITA FastPay?
Individuals — W‑2 employees, sole proprietors, retirees, and any resident paying a personal balance — enter their SSN. Businesses remitting payroll withholding or net profit for a corporation or partnership enter their FEIN. Sole proprietors file under Individual Income Tax with their SSN, not under Net Profit Tax with an FEIN, even if they have an EIN for their business.
Is there a fee to pay RITA tax with a credit card?
Yes. FastPay charges a non‑negotiable 2.75% third‑party service fee on all credit card transactions, including debit cards processed as credit. ACH transfers from a checking or savings account are free of charge.
Can I pay RITA FastPay from a savings account?
Yes. FastPay accepts ACH transfers from both checking and savings accounts at no additional cost. Have your bank's routing number and your account number ready before starting the payment.
How long does a FastPay payment take to post to my RITA account?
FastPay payments process through daily ACH batch runs and require 3 to 4 business days to appear in your RITAX account ledger. If your balance has not updated after 4 business days, contact RITA directly with your confirmation number. Do not resubmit — duplicate payments require a separate allocation request to reverse.
What if I paid the correct tax type but the wrong municipality?
Submit RITA's "Request for Allocation of Payments" form. Include your FastPay confirmation number, the municipality you paid to in error, the correct municipality, the amount, and the payment date. RITA can redirect the credit without requiring you to repay.
I have an ITIN instead of an SSN — can I use RITA FastPay?
No. FastPay requires either an SSN (for individuals) or an FEIN (for businesses). Taxpayers with an Individual Taxpayer Identification Number (ITIN) instead of an SSN must file and remit payment via paper forms mailed directly to RITA. Contact RITA's office for the correct paper filing packet for your municipality.
Does RITA FastPay accept American Express?
FastPay accepts Visa, MasterCard, and Discover with a 2.75% service fee. American Express is not listed as an accepted card type. ACH (bank transfer) remains the recommended payment method to avoid any processing fee.
Key Takeaways
- W‑2 employees always select "Individual Income Tax" and enter their SSN. "Employer Withholding" is never the right choice for a personal payment.
- "Employer Withholding" is exclusively for businesses remitting employee payroll taxes via Form 11 under an FEIN. Misselection by an employer exposes them to a 50% penalty under ORC §718.27.
- Sole proprietors use Individual Income Tax + SSN — not Net Profit Tax + FEIN — unless they file a separate business entity return (Form 27).
- TurboTax does not transmit payments. If it generated a Form 06 voucher, you must pay that amount separately via FastPay or check. Filing is not paying.
- ACH transfers are free. Credit card payments carry a mandatory 2.75% service fee.
- Payments take 3–4 business days to post. Save your confirmation number and do not submit a duplicate payment during that window.
- Wrong tax type submitted? Do not repay. Submit RITA's "Request for Allocation of Payments" form and include your FastPay confirmation number.
- ITIN holders cannot use FastPay. They must file and pay via paper forms mailed to RITA.