Ohio Payroll Services and Regulations

Gusto Editors

When your business runs payroll in Ohio, paying your employees is just one piece of the puzzle. You’ll also need to be sure your company’s payroll operations follow Ohio tax, wage, and benefits regulations.

Payroll laws apply equally to brand-new and longstanding businesses, so at Gusto, we put together everything you should know such as minimum wage, overtime pay, benefits and more before you run your next payroll.

Key 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 about payroll in Ohio

What does an Ohio payroll provider need to track?

Ohio payroll providers must track the following information:

  • Names, addresses, and job titles of all employees
  • Individual employee pay rates
  • Amount paid per employee per pay period
  • Hours each individual employee worked every workday and workweek

How often do employees in Ohio get paid?

Ohio employees are paid at least twice per month:

  • Payment for work done between the 1st and 15th of the month must be made no later than the 1st of the next month.
  • Payment for work done between the 16th and the final day of the month must be made no later than the 15th of the next month.

What types of payroll taxes are paid in Ohio?

There are two primary types of payroll taxes in Ohio: income tax and state unemployment insurance (SUI) tax.

Gusto Editors Gusto Editors, contributing authors on Gusto, provide actionable tips and expert advice on HR and payroll for successful business management.
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