Navigating Ohio’s payroll regulations can be complex. This guide simplifies key aspects of Ohio payroll law, providing essential information for employers.
**Ohio Income Tax Withholding**
The Ohio Department of Taxation oversees state income tax collection and reporting. Contact them at: Department of Taxation, P.O. Box 2476, Columbus, OH 43266-0076, (614) 433-7887, (888) 405-4039, or www.state.oh.us/tax. Ohio mandates the use of form IT-4, “Employee’s Withholding Exemption Certificate,” instead of the federal W-4 form for state income tax withholding.
Salary reductions under Section 125 cafeteria plans and 401(k) plans have specific tax implications in Ohio. Cafeteria plans are not taxable for income tax or unemployment insurance. 401(k) deferrals are not taxable for income taxes but are taxable for unemployment insurance purposes. Supplemental wages in Ohio are taxed at a flat rate of 3.5%. Employers can file Ohio State W-2s via magnetic media.
**Ohio Unemployment Insurance**
The Ohio Department of Job and Family Services, Unemployment Compensation Division (52 Robinwood Ave., Columbus, OH 43213, (614) 466-2100, www.state.oh.us/odjfs) manages unemployment insurance. The taxable wage base is $9,000.00. Quarterly wages can be reported on magnetic media. Unemployment records must be kept for five years, including employee names, Social Security numbers, hire/rehire/termination dates, wages, pay periods/dates, and termination circumstances.
**Wage and Hour Laws**
The Department of Commerce, Division of Labor and Worker Safety, Wage and Hour Bureau (50 West Broad St., Columbus, OH 43215, (614) 644-2239, www.state.oh.us/Business/Employer/ProtectingYourBusiness/Wages.htm) enforces Ohio’s wage and hour laws. Minimum wage varies by employer size. Overtime pay for non-FLSA covered employers is one and a half times the regular rate after 40 hours per week.
New hire reporting requires employers to report new hires/rehires within 20 days, including employee name, address, date of birth, hire date, Social Security number, employer name, address, and Federal Employer Identification Number (EIN). Report via W4 or equivalent by mail, fax, or electronically. Late reports incur a $25 penalty, conspiracy a $500 penalty. Contact the reporting agency at 888-872-1490, 614-221-5330, or www.oh-newhire.com. Ohio allows compulsory direct deposit, subject to federal Regulation E. There are no state laws regarding pay stub information. Employees must be paid at least semi-monthly, or monthly if customary/contractual, by the first of the next month. Lag time between the pay period and payment is limited. There’s no general provision for final wages to terminated employees, however wages up to $2,500 of a deceased employee must be paid to the surviving spouse, adult children, or parent. Unclaimed wages escheat to the state after one year; employers must keep records for five years. Tip credits cannot exceed $3.02 (less for smaller employers). Minors under 16 must have a 30-minute rest break after five hours of work. Wage and hour records must be kept for three years, including FLSA-required information.
**Child Support Orders**
The Office of Child Support, Ohio Department of Human Services (State Office Tower, 30 E. Broad St., 31st Fl., Columbus, OH 43266-0423, (614) 752-6561, www.ohio.gov/odhs/Ocs/index.htm) enforces child support orders. Withholding starts 14 working days after the order is mailed. Payments are sent within 7 days of payday. Termination notices are sent within 10 days of termination. The maximum administrative fee is the greater of $2 or 1% of payment. Withholding limits are subject to federal CCPA rules.
*Disclaimer: This information is not updated for changes that can and will happen from time to time.*