If you discover an overpayment after the year closes, request for the refund on the annual reconciliation form IT 941. Employers are not required to withhold Ohio income tax for an employee who lives and works in another state, even if the work is performed for an Ohio company.Fill out the Form 10A to apply for a refund. Separate 10As must be completed for each W-2 or each RITA Municipality. Any Ohio city, with an income tax, is allowed to have withholding taken out of your pay while you worked in that city. The Ohio residents are subject to pay the local municipal and school district taxes based on where they live and work in the state. Submit form IT 4 to your employer on or before the start date of employment so your employer will withhold and remit Ohio income tax from your compensation. What is a Tax Return or Tax Filing? Why Do I Need to File? Individuals and business owners often have more than one way to complete a taxable transaction.