US State Tax Summeries-2

Your Ultimate Guide to US Payroll in Ohio

Managing payroll in Ohio? Read our state-by-state guide to US payroll taxes to learn what you must withhold and deduct from employee wages.

Jemima Owen-Jones
Written by Jemima Owen-Jones
July 24, 2023
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Key takeaways

  1. Employers who hire employees in Ohio are responsible for paying various payments to the state on behalf of their workers.
  2. Unemployment insurance, personal income tax, and workers’ compensation are among the necessary payments to be withheld or managed.
  3. Deel helps businesses streamline payroll and compliance by offering expert guidance and a robust payroll platform.

Employers are responsible for ensuring proper payroll withholding and remaining compliant with specific state laws and regulations. These requirements vary from one US state to another, and it’s important to understand the specific details related to your state. 

As a payroll manager in Ohio, you must follow Ohio-specific requirements regarding unemployment insurance, withholding personal income tax, and paying workers’ compensation. As a starting point, we’ve put together this guide to point you in the right direction. 

Paying unemployment insurance

As an employer in Ohio, you are responsible for making a few key payments on behalf of your employees — for example, federal taxes such as Medicare and Social Security. In addition, Ohio state taxes are to be withheld from the employee’s payroll, consisting of employer payroll taxes or payroll withholding. Also included is unemployment insurance (UI).

UI is a program designed to provide temporary financial assistance to individuals who have lost their jobs through no fault of their own. While unemployment insurance is paid by the employer, the Ohio Department of Job and Family Services (ODJFS) oversees the administration of unemployment insurance in the state.

Employers can manage Ohio unemployment insurance through an online portal. For more information on paying your unemployment insurance, you can consult the Ohio Department of Taxation website.

Withholding personal income tax from your Ohio employee

Withholding personal income tax on behalf of the employee is another area that an employer must manage.  Ohio personal income tax is a tax imposed on the income earned by individuals who are residents of the state of Ohio and is deducted from the employee’s wages. 

After deducting the fee from the wages, the employer is responsible for paying the withheld amount to the state. Payment can be made through Ohio’s online portal. The Ohio Department of Job and Family Services provides more information on paying the withheld amount. 


Paying your Ohio workers’ compensation

Workers’ compensation is a type of insurance that provides medical and wage replacement benefits to employees who suffer work-related injuries or illnesses. It is designed to protect both workers and employers by offering financial support to injured or sick employees and, in return, shielding employers from potential lawsuits related to workplace accidents.

Workers’ compensation is a prerequisite for all Ohio employees, regardless of the number of employees you hire in the state. Unlike other states, Ohio does not allow workers’ compensation coverage from private carriers, meaning you must purchase coverage from the state. 

All necessary information on registration and coverage can be accessed from the Ohio Bureau of Workers’ Compensation.

Simplify US payroll tax compliance with Deel

While this guide provides essential information on Ohio payroll taxes, payroll compliance, and state requirements extend beyond what is covered above. To streamline the process and ensure full compliance, companies can turn to Deel. 

Deel offers a comprehensive solution for managing US and international payroll, including payments, taxes, worker classification, and more. Speak with an expert today to see how you can streamline your US payroll processes and ensure compliance with state regulations.

Disclaimer: This article is provided for general informational purposes and should not be treated as legal or tax advice. Consult a professional before proceeding.

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