Ohio payroll services done right.
Ohio payroll compliance is no picnic. Luckily, Gusto handles local tax complexity while helping your business run smoother—from paperless hiring to seamless time and scheduling. From the Three Cs to Marietta, Gusto delivers powerful payroll, HR, and more across the Buckeye State.
Compliance made easy
Stay compliant with minimum wage, pay period, and paystub requirements while we take care of the paperwork—from SD 101s to 1099s and W-2s.
Payroll across state lines
Whether they’re commuting from PA, IN, KY, WV, or MI—Gusto files and pays federal, state, and local taxes in every state your team calls home.
Admin off your plate
With automated time and scheduling tools, employee self-service, and built-in benefits, we work harder so you don’t have to.
Ohio payroll tax compliance
Escape the local tax labyrinth
With more than 600 municipalities and 200 school districts levying local taxes across the state, Ohio sports one of the most complex tax systems in the country. Add in JEDDs and local tax credits and errors aren’t just common—they can be costly. Skip the stress and let us deal with city taxes, RITA, and the CCA.
Integrated time & scheduling
Time tools that keep your business moving.
Salaried or hourly, employee or contractor, Gusto lets you pay your whole team in minutes. Employees can clock in via web, mobile, or time kiosk, and hours sync to payroll with a click. Easily set up shift differentials, custom PTO accruals, or geofenced clock-in locations. Plus, the Gusto app lets employees swap shifts, request time off, and manage benefits from anywhere without adding admin.
✔ Shift scheduling & swapping ✔ Unlimited custom PTO policies ✔ Mobile employee self-service | ✔ Time kiosks ✔ Geofenced clock-ins ✔ Multiple pay rates & schedules |
All-in-one people platform
Built for Ohio business, big and small.
Gusto gives every business access to modern payroll, HR, and people tools without the cost and complexity of the big guys. With fully integrated benefits, powerful workforce management tools, and HR that practically runs itself, doing business in Ohio just got a whole lot easier.
Whether you’re stamping parts in Dayton, hauling freight through Rickenbacker, or running a shop in Sandusky—Gusto gives you more time to do what you do best.
Ohio regulations payroll professionals need to know
Ohio minimum wage
The current Ohio minimum wage is as follows:
$8.55/hour for non-tipped employees
$4.30/hour for tipped employees, if they earn enough tips to reach the standard non-tipped employee minimum wage
Ohio pay stubs
Although Ohio law does not require employers to furnish pay stubs, Ohio employers must track and store at least three years’ worth of the following information:
Names, addresses, and positions of all employees
Employee pay rate
Amount paid per pay period
Hours worked every workday and workweek
Ohio pay periods
Ohio employers must pay their employees at least twice per month, according to the following pay schedule:
Employees must be paid for all work done between the 1st and 15th of the month by the 1st of the next month.
Employees must be paid for all work done between the 16th and the final day of the month by the 15th of the next month.
Determining time worked in Ohio
Ohio state law doesn’t provide guidance on defining “work hours,” but it does require employers to pay overtime once an employee clocks more than 40 hours in a workweek.
Ohio overtime pay and tracking
In Ohio, employers must pay employees at 1.5 times their normal pay rate for all hours worked past 40 hours during a given workweek.
Ohio final wage payment
When an employee leaves your company, their final paycheck is due within 15 days of their last day or on the next regularly scheduled payday, whichever occurs sooner. Employees who did not receive a final paycheck can file a Minimum Wage Complaint with the Ohio Department of Labor.
Income tax withholding in Ohio
Ohio income taxes are progressive and range from 0% to 4.797%. As you earn more, you pay a flat fee plus a percentage of your income.
Ohio benefits
Ohio employees are entitled to benefits through the federal Social Security and Family and Medical Leave Act (FMLA) programs. Ohio employers must also follow these state benefit regulations:
Workers’ compensation: Ohio employers must provide all employees with workers’ compensation insurance.
Health insurance: Ohio doesn’t require employers to offer health insurance, but under the federal Patient Protection and Affordable Care Act (ACA), American employers with at least 50 full-time (or equivalent) employees must provide their employees with health insurance.
Sick leave: Ohio state law does not require employers to provide sick leave to their employees.
Voting: Although Ohio employers may not terminate or penalize employees for taking time off to vote on election days, Ohio employers are not required to provide paid time off for voting.
Why is Gusto a great payroll provider in Ohio?
1. Unlimited payroll
Gusto, unlike many other payroll platforms, allows your business to run payroll as often as you need without extra fees. Use our flexible payroll management platform to support your team’s payroll needs. No matter your company’s location, size, or age, Gusto helps you run payroll in just minutes for your team: contractors, employees paid at different rates, hourly and salaried employees, and out-of-state employees. With dozens of customizable options, you can set Gusto to run your pay schedules exactly how you need.
2. Tax filings and payments
Gusto helps ensure your payroll and benefits are in line with municipal, state, and federal regulations. You’re only a few clicks away from fulfilling your tax-filing and payment obligations.
We also do the heavy lifting when it comes to onboarding new hires and reporting their employment to the government. Throughout the year, we report your company’s information and submit tax payments to the appropriate authorities while keeping up to date with new regulations that may apply to your business.
Onboarding and communication with employees is amazing with Gusto, especially at year-end.
Don Miller, Founder of JADR Consulting, LLC
3. Forms and reports
With Gusto, your printer and scanner may never have to see a tax form again. We auto generate your quarterly and year-end tax forms, W-2s, 1099s, and customized payroll reports. You can also use Gusto to forward copies of W-2s and 1099s to your employees. In turn, they can use our e-file, e-sign, and e-fax tools—for free.
4. Employee benefits
With Gusto, you can run payroll and administer benefits from the same easy, user-friendly dashboard. Use Gusto to provide employee benefits, including:
Medical, dental, and vision insurance
Retirement savings programs
Life and disability insurance
Commuter benefits programs
Flexible spending accounts
And more
We regularly update our platform with new benefits compliance regulations to help ensure your offerings are legally sound.
Frequently Asked Questions
The most important feature for an Ohio payroll company is local tax filing and payment. Ohio has over 600 municipalities with their own local income taxes, often collected through RITA or CCA. Withholding amounts are complex, filing requirements change depending on your business, and compliance errors can be costly.
Starting in tax year 2026, Ohio uses a flat 2.75% state income tax on wages above $26,050, with no tax below that. The higher brackets that applied in 2025 and previous years have been eliminated. Employers also must withhold local municipal tax, and sometimes school district tax, on top of standard state unemployment insurance. In addition, there are many corporate taxes that businesses must pay. Check out this guide to learn more about small business taxes in Ohio.
Gusto handles Ohio state tax registration through Middesk, but for local taxes, employers are responsible for registering with the right municipality. Once you’re registered directly with that city or with RITA or CCA, Gusto automatically handles ongoing withholding and filing.
Ohio doesn’t have any state health insurance or paid leave requirements, save for a few exceptions for state workers. Federal ACA requirements and FMLA still apply.
Absolutely. Gusto was built for small business, and we support Ohio state tax withholding, unemployment insurance, and local municipal filing for small businesses, including those with employees across multiple municipalities.
In addition to federal taxes, Gusto handles the following tax forms in Ohio:
- IT-941 (Employer's Annual Reconciliation of Income Tax Withheld)
- SD-101 (Employers Payment of School District Income Tax Withheld)
- OH IT-501 (Ohio Income Tax Withheld Deposit Payment)
- JFS-20125 (Unemployment Compensation Quarterly Tax Return)
- For the Ohio Department of Job and Family Services
- Form 11 (Employer's Municipal Tax Withholding Statement)
- SD-141 (School District Employer's Annual Reconciliation)
- IT-3 (Transmittal of Wage and Tax Statements)
- State W-2 (Wage and Tax Statement)
- New Hire Report
- Various local returns
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