Article
8 min read
What is a PEO in Ohio? Guide to HR, Payroll, and Compliance
PEO
Author
Shannon Ongaro
Last Update
October 14, 2025
Table of Contents
The role of PEOs in Ohio
Benefits of partnering with an Ohio PEO
Payroll, labor, and employment laws in Ohio
Additional requirements and enforcement
How to choose the right PEO in Ohio
Manage your Ohio, US, and global workers with Deel
Key takeaways
- An Ohio PEO service supports business growth in Ohio by managing federal and state compliance, thereby minimizing the risk of potential fines and legal action.
- Partnering with a PEO provides access to more comprehensive and competitive benefits, making it easier to attract skilled workers.
- You can outsource human resources, payroll processing, and benefits administration to Deel, allowing you to focus on scaling and expansion.
An Ohio professional employer organization (PEO) establishes a co-employment partnership to manage HR tasks, payroll, benefits, and legal compliance for Ohio-based businesses.
This setup allows Ohio companies to share employment duties while maintaining full control over daily work and business decisions.
As rules become more complex, PEO partnerships help small businesses comply with Ohio-specific laws, such as the state’s wage rules and required insurance coverage.
Deel’s PEO service helps Ohio businesses navigate changing regulations while gaining access to improved benefits and expert HR support.
The role of PEOs in Ohio
PEO services handle key functions such as payroll, tax compliance, and benefits administration, thereby simplifying various aspects of workforce management. This allows in-house teams to channel more resources toward core business objectives and expansion.
Although you pay the PEO service provider, the arrangement is more like a partnership. You enter into a co-employment relationship with the provider, where they assume substantial responsibility for tax and HR compliance. However, you still maintain control over your staff and day-to-day decision-making.
Ohio regulates PEOs operating within the state to ensure compliance with its laws and protect businesses and their employees. All providers are required to register annually with the Bureau of Workers’ Compensation (BWC) and prove they have the working capital to support all their client companies. The state reserves the right to revoke the arrangement at any moment if the PEO violates local laws.
PEOs based outside the state can apply for limited registration if they don’t have physical offices, don’t solicit business in Ohio, and employ fewer than 50 workers collectively.
Benefits of partnering with an Ohio PEO
Partnering with a PEO in Ohio is an effective growth strategy. The provider can support your operations and minimize risk to your business, allowing you to concentrate on expansion. Here’s a closer look at the benefits of using a PEO:
Greater efficiency and cost savings
A PEO can streamline your operations and save you costs. For a predictable monthly fee, you can gain access to expert HR and payroll services, removing the need to add to your headcount until it makes sense for your business.
Leading PEOs also offer advanced HR and payroll technology to further streamline operations. You can benefit from powerful automation and analytics tools, improving efficiency without compromising accuracy.
An example is Deel. Our platform automates payroll calculations, tax filings, and compliance reporting while providing real-time workforce analytics.
With automated onboarding workflows and integrated benefits management, Deel helps Iowa businesses operate more efficiently while maintaining full visibility into workforce costs and performance.
Deel’s PEO service is free for up to three months, after which you will receive a custom quote based on your business size and needs.
Access to a range of expertise
Small to medium-sized businesses may not have the budget to hire in-house experts, making it harder for them to support growth. This also leaves you vulnerable to more financial and legal risks, but you’re less likely to be able to absorb these penalties.
A PEO gives you HR and payroll experts on demand. While the fee remains the same, you can discuss with the provider’s team of experts on how to optimize processes and avoid common pitfalls.
Affordable employee benefits plans
Through your partnership, your business can access more competitive benefits packages, including health insurance and retirement plans. The PEO has a large, collective workforce, which enables it to leverage this to negotiate better deals with state providers.
In addition, PEOs can help you manage state-mandated benefits plans. Ohio requires you to secure workers’ compensation for all your employees. However, this responsibility is typically assumed by the provider in a PEO partnership.
Enhanced compliance
Navigating complex federal and state laws is daunting, with non-compliance potentially leading to significant penalties and legal action. For example, an Ohio-based business recently had to pay over $150,000 to settle a discrimination case involving a former employee who was trying to return to work after being approved for medical leave.
A PEO service, like Deel, can help you identify and mitigate risks when managing HR, payroll, and benefits. This allows your team to spend less time on compliance management while giving you peace of mind that your company is protected.
Deel PEO
Payroll, labor, and employment laws in Ohio
Ohio requires employers to comply with a combination of federal, state, and local regulations.
Partnering with an Ohio PEO shifts the responsibility for staying compliant with these rules from the client company to the provider.
Here’s a breakdown of the main laws in Ohio:
Payroll and benefits laws
| Law/Regulation | Requirements |
|---|---|
| Minimum wage | On January 1, 2025, Ohio increased its minimum wage to $10.70 per hour for non-tipped workers and $5.35 per hour for tipped workers. There’s a lower rate of $7.25 for businesses that gross $194,000 or less in the year. |
| Overtime | You must pay an overtime rate of 1.5 times the employee’s regular wages for any hours worked over 40 in a standard week. Employees grossing less than $150,000 per year are exempt. |
| Deductions | Employers must obtain permission from workers before deducting any amount from employee wages that is not required by federal, state, or local law. |
| Pay transparency | Ohio doesn’t have statewide pay transparency laws requiring employers to disclose salary ranges in job ads or upon request. However, some cities have passed salary history bans, meaning you can’t inquire about what candidates have earned in previous roles. |
| Payment method | If you don’t have a written agreement concerning the provision of wages, you must pay the entire amount in cash. |
| Paydays | You must pay employees at least semi-monthly. Work done in the first half of the month must be paid by the 1st of the following month. Likewise, work done in the second half of the month must be paid by the 15th of the following month. |
| Sales | Employers can’t sell items to workers unless they’re made by the business or part of their usual products and services. You can make an exception for items like meals, confectionery, and safety equipment. |
Labor laws
| Law/Regulation | Requirements |
|---|---|
| Meal and rest breaks | Ohio doesn’t mandate meal and rest breaks for workers, but many employers choose to include them in their policies. |
| Paid time off (PTO): | You’re not required to provide or pay out PTO unless it is included in your company policy. |
| Workers’ compensation insurance: | All employers in Ohio are required to obtain insurance from the Bureau of Workers’ Compensation. You must keep detailed records and make them available to the Bureau upon request. |
| Workplace safety | It’s the employer’s responsibility to provide a safe workplace, including providing the right equipment and scheduling reasonable shifts. |
| Union laws | Employers can’t interfere with union activities or discriminate against workers who have joined a union. You’re also required to negotiate with certified representatives. |
| Job information | You’re allowed to disclose information about a worker’s performance to another prospective employer, provided everything is true and you act in good faith. |
Employment laws
| Law/Regulation | Requirements |
|---|---|
| Worker classification | There are several tests to determine whether someone should be classified as an employee or an independent contractor. All tests generally gauge the level of control and direction you have over your workers. |
| At-will employment | Ohio is an at-will state, which means you can terminate an employment contract at any moment, provided the reason is legal. However, you can’t violate the terms of any written agreements between you and workers. |
| Discrimination | Employers can’t discriminate against workers based on factors such as age, gender, or disability. You can only pay different salaries for the same role when you have a clear seniority or meritocracy system. |
| Family leave | Ohio defaults to the federal Family and Medical Leave Act (FMLA) and gives new parents up to 12 weeks of paid leave. Employees must take the leave within one year of the birth or adoption, and be named as the biological parent or legal guardian |
| Sick leave | Under the FMLA, your employees can also take up to 12 weeks of PTO for serious illness or injury in Ohio. They must supply you with a medical certificate as proof of their condition |
| Policy | You’re free to include policies about the number of hours required, the location of work, and notifications about schedule changes in your employment contract |
Additional requirements and enforcement
Beyond compliance with these laws, you’re required to pay unemployment insurance (UI) for any employees in Ohio. You must register with the Department of Job and Family Services the moment you hire your first eligible worker.
The following types of workers are exempt:
-
Students working for their educational institute while attending classes
-
Family members employed by a sole proprietorship
-
Workers employed by churches or religious organizations
-
Individuals in rehabilitation programs who aren’t ready for competitive employment
-
Employees of nonprofits earning less than $50 per quarter
-
People engaged in state or federally funded work relief or training programs
In 2025, you can expect to pay between 0.4% and 10.1% on a taxable wage base of $9000. New employers start at 2.7% unless they’re in the construction industry, where it’s 5.6%.
You may be subject to other laws depending on your industry. Where there’s any overlap with federal and state law, you’re generally required to comply with the one offering workers the greater rights.
With Deel PEO, we can now hire and onboard employees across the US in a fraction of the time it used to take. [...] Deel provided more value with superior compliance management, real-time customer support, and a truly centralized system.
—Hassan Ibrahim,
Operations Manager, Tough Leaf
How to choose the right PEO in Ohio
The right PEO can keep your business updated with all the relevant federal and state laws while streamlining your operations. Here are the seven steps you can take to assess each provider and determine whether they’re a good fit:
1. Define your business needs
Begin with a comprehensive review of your payroll, benefits, and HR operations to look for inefficiencies. Consider how the PEO could help you streamline these processes and save costs.
Consider both your long-term goals and your short-term needs. A great provider should be able to adapt its services as your organization expands and its needs evolve.
2. Research PEOs with Ohio expertise
Prioritize PEOs with a strong presence in Ohio and a proven track record of success with similar companies. Case studies and testimonials can provide insight into the quality of each provider’s service and offer an indication of how they handle issues.
Additionally, check that all PEOs are registered in the state of Ohio, as this shows they’re legitimate and meet the required standards to support your operations.
3. Evaluate the range of services and quality of benefits
Explore the services offered by each PEO to determine if they align with your specific needs and goals. Benefits are a key focus area—the provider should be able to guarantee comprehensive packages at a competitive rate.
Also, assess how easily the PEO can tailor its services to your unique setup. For example, consider how easily you can customize their HR and payroll tools to your processes and incorporate them into your operations.
Deel offers additional flexibility by allowing you to bring existing benefits providers if you prefer to retain current relationships.
Our platform also integrates seamlessly with your existing tech stack, including ATS systems, single sign-on solutions, provisioning platforms such as Slack and Google Workspace, workflow builders, and accounting systems, thereby minimizing disruption during the transition.
4. Assess compliance and risk management capabilities
Research how the PEO stays updated with federal, state, and local regulations and how they communicate any regulatory changes to client companies. They should take a proactive approach to ensure you’re always one step ahead of any potential disruptions.
Leading PEOs offer tools to help you monitor and keep up-to-date with laws. For example, Deel has a Compliance Hub that notifies clients of regulatory updates and flags compliance risks. We translate new legislation into straightforward, accessible language and send the relevant updates to your business.
5. Check customer service and support
Assess the PEO company’s support by examining its availability, contact options, and average response times closely. Compliance issues are often time-sensitive, so you need to know the team will provide prompt and expert assistance.
Ask whether they offer a dedicated customer success manager, as this gives you a single point of contact. You can count on this person to familiarize themselves with your business so they can offer targeted support.
6. Review and negotiate the contract
Carefully review the PEO contract to ensure it clearly outlines all your rights and responsibilities. If necessary, consult with a legal professional to confirm that the agreement aligns with your company’s objectives. They can clarify any legal terminology and help you negotiate any unfavorable terms with the provider.
7. Plan for implementation and transition
Prepare your team for the transition to a PEO. Inform employees about all the upcoming changes and explain the benefits of partnering with the provider. You can encourage them to ask questions and get their input on what’s working well and what’s not.
Work closely with the PEO to develop a timeline with clear milestones for each stage of the transition. This can help you keep the initiative on track and develop a strong foundation for the partnership.
See also: How to choose a US PEO
Manage your Ohio, US, and global workers with Deel
Deel’s in-house PEO is built to support fast-growing teams with the tools, coverage, and service they need, all in one platform.
Watch the video below to learn how Superfiliate uses Deel PEO to hire and pay its growing US workforce.
Fully in-house support
Deel PEO is run entirely by internal specialists, including certified professionals, licensed advisors, and dedicated HRBPs. Clients get direct access to expert guidance across payroll, benefits, and compliance, with no third-party handoffs or delays.
Benefits admin made easy
Admins can choose, enroll, and manage health benefits for US employees directly in the Deel platform. They can view costs, track coverage, and handle renewals—all in one place, without chasing brokers or juggling paperwork.
See also: How to Choose the Best PEO for Health Insurance
Exclusive access to Aetna International plans
For teams with globally mobile employees, Deel is the only PEO to offer Aetna International health plans, ensuring continuous coverage across borders without needing to manage separate providers.
All-in-one platform
Admins can manage hiring, onboarding, payroll, and benefits in one place. Deel simplifies every step, from enrollment to renewals, reducing HR admin time.
Compliance coverage at every level
Deel helps businesses meet federal, state, and local employment laws, taking the guesswork out of US HR compliance.
Ready to simplify HR in Ohio? Book a demo to see how Deel’s in-house PEO delivers compliant, all-in-one payroll, benefits, and HR management.
FAQs
Is Ohio a PEO state?
Yes, Ohio regulates PEOs operating within the state. All PEO providers must register annually with Ohio’s Bureau of Workers’ Compensation and prove they have adequate working capital to support client companies. Ohio can revoke registration if PEOs violate local laws. Out-of-state PEOs can apply for limited registration under specific conditions.
Does Deel have experience with Ohio businesses beyond tech companies?
Deel serves Ohio-based businesses across industries, including manufacturing, healthcare, logistics, and construction.
When should you use a PEO?
Consider a PEO when you need expert HR support but lack budget for full-time staff, struggle with compliance management, want access to better employee benefits, or spend too much time on payroll and administrative tasks. PEOs are particularly valuable for growing businesses with up to 300 employees.
Can I keep my current benefits providers and systems when switching to Deel?
Yes, Deel allows you to bring existing benefits providers if you wish to retain those relationships.
What support is available if I need to transition away from Deel PEO?
You’ll receive clear instructions and dedicated support from your Onboarding Manager and Customer Success Manager throughout any transition process.
If you need different workforce solutions like global payroll or EOR services, you don’t have to leave Deel entirely. Our all-in-one platform enables you to adapt operations to changing workforce needs with EOR, global payroll, local payroll, and contractor management all in one place.
Disclaimer: This article is intended for informational purposes and should not be considered legal advice. Consult a qualified licensed attorney for help on legal issues.
Shannon Ongaro is a content marketing manager and trained journalist with over a decade of experience producing content that supports franchisees, small businesses, and global enterprises. Over the years, she’s covered topics such as payroll, HR tech, workplace culture, and more. At Deel, Shannon specializes in thought leadership and global payroll content.
