Ohio pay stub requirements
Before providing pay stubs to employees and contractors in Ohio, it's essential to understand the relevant laws and regulations governing payroll operations.
This guide elucidates the laws and regulations applicable to employers in Ohio, ensuring compliance when running payroll and issuing pay stubs.
Pay stub regulations in Ohio
1. Are pay stubs required by law in Ohio?
It's not mandatory for employers in Louisiana to provide employees with pay stubs. However, federal law requires all employers covered by the Fair Labor Standards Act (FLSA) to maintain a record of employees payments for at least 3 years.
2. How often do you need a pay stub in Ohio?
Although there's no law for employers to provide pay stubs to their employees and contractors, it is recommended that you issue pay stubs every time you pay an employee.
3. What information can be included on a pay stub in Ohio?
The following information can be included in employee pay stubs:
- Employee information such as name, last 4 digits of social security number, and address
- Employer information such as name, employer identification number (EIN), and address
- Number of hours worked during the pay period
- Tax Deductions
- Any itemized deductions taken from the employee's paycheck
- Gross and net pay amount
- The dates of the pay period.
4. Does Ohio have a state income tax?
Yes. The State of Ohio requires employers to withhold income taxes from employee paychecks.
5. Are there any other taxes applicable to Ohio?
Yes, the following Ohio cities have local taxes: Akron, Canton, Carlisle, Cincinnati, Columbus, Dayton, Middletown, and St. Marys
Information needed to generate pay stubs
To provide employees with accurate pay stubs, the information below is required.
- Employee's total allowances
- Employee's exemption status from state withholding
- Employee's additional state withholding amount
Ohio wage and hour laws
In Ohio, employers are obligated to follow wage and hour regulations, ensuring that non-exempt employee receive fair compensation, including at least minimum wage, proper overtime pay, adequate meal and rest breaks, and appropriate accrual of paid time-off benefits.
In Ohio, these regulations encompass various aspects of employment law
Ohio Minimum wage
In Ohio, it is a legal obligation for businesses to ensure that their employees are paid at least the minimum hourly wage as specified by statutory regulations.
In 2024, Ohio's Minimum wage regulations stipulate that employers with annual gross receipts of $385,000 or more must pay a basic minimum rate of $10.45 per hour.
For employers with annual gross receipts under $385,000, the basic minimum rate per hour is $7.25. It's important to note that the minimum wage is subject to annual adjustments based on a predefined formula.
Overtime pay
Employers in Ohio must compensate employees for overtime at a rate of one and one-half times their regular wage for hours worked beyond forty in a single workweek. This practice aligns with the guidelines outlined in the Fair Labor Standards Act and must be implemented accordingly.
Ohio meal break and rest break
In Ohio, state law does not mandate employers to provide meal breaks or rest breaks to their employees.
Paid time off and leave
In Ohio, employers are obligated to provide employees with various types of leave benefits, which include both mandatory and discretionary options.
| Required Leave | Non-Required leave |
|---|---|
| Unpaid | Paid or Unpaid |
| Employers may need to offer unpaid leave as mandated by federal laws such as the Family and Medical Leave Act (FMLA). | Vacation leave |
| Jury duty leave | Bereavement leave |
| Military leave | Holiday leave |
| Witness leave | Sick leave |
| Family military leave |
Ohio State payroll taxes 2024
In Ohio, payroll taxes are typically categorized as follows:
- Ohio Personal Income Tax(PIT)
- Ohio State Unemployment Insurance (UI) Tax
Ohio Personal Income Tax(PIT)
In Ohio, state personal income tax rates vary based on an individual&apo;s filing status and income level. Common filing statuses include Single, Married Filing Separately, Married Filing Jointly, and Head of Household.
When calculating Ohio taxable income for Taxable Year 2024, the corresponding tax amount is determined by applying the appropriate tax rates to the income within specific income brackets for both Single Filers and Married Filing Jointly.
| 2024 Brackets | 2024 Tax Rate |
|---|---|
| $0 - $26,050 | $0 |
| Over $26,050 but not over $92,150 | 2.750% of the excess over $26,050 |
| Over $92,150 | 3.500% of the excess over $92,150 |
Ohio State Unemployment Insurance (UI) Tax
Ohio implemented the State Unemployment Tax Act (SUTA) to provide assistance to individuals facing unemployment by offering unemployment benefits. This law enables the state to collect the necessary funds to administer unemployment insurance benefits to eligible individuals during periods of job loss.
In 2024, Ohio's State Unemployment Tax Act (SUTA) featured various rates tailored to different employment circumstances. These rates include the lowest experience rate of 0.4%, the highest experience rate at 10.1%, a mutualized rate of 0.5%, and With the exception of employers in the construction industry, which have specific considerations, the new employer rate for 2024 is set at 2.7%. However, for employers in the construction sector, the new employer rate is elevated to 5.6%.Additionally, the annual taxable wage base is established at $9,000 for the year 2024.
Ohio payroll tax filing
- Report of New hire Employees
- Report of Independent Contractors
- Ohio personal income tax filing(Form IT 1040,Form SD 100)
- Ohio Quarterly wage report
Report of New hire Employees
The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) mandates that all employers must submit new hire reports within 20 days after an employee is hired, re-hired, or returns to work.
Report of Independent Contractors
For contractors expected to earn $2,500 or more, the requirement under the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) remains the same—all employers must submit new hire reports within 20 days after the employee is hired, re-hired, or returns to work.
How to report employees and independent contractors new hire in Ohio?
In Ohio, there are multiple options available for submitting new hire information, offering flexibility in the reporting process.
| Online | Fax | |
|---|---|---|
| Employees and independent contractors New Hire Report | Address Information: Ohio New Hire Reporting Center P.O. Box 15309 Columbus, OH 43215 Direct Phone: 614-221-5330 Public Phone: 888-872-1490 | Fax 1: 888-872-1611 Fax 2: 614-221-7088 |
Ohio personal income tax filing(Form IT 1040,Form SD 100)
For Ohio's individual income tax filing season in 2024, here are the key dates:
- Filing Season Open: January 29, 2024
- Filing Season Deadline: April 15, 2024
- Extension Filing Deadline: October 15, 2024
If a due date falls on a weekend or holiday, the due date is the next business day. The forms for filing individual income tax in Ohio are the form IT 1040 for Ohio Individual Income Tax Return and the Form SD 100 Ohio School District Income Tax Return.
Ohio Quarterly wage report
Employers in Ohio are mandated by law to submit quarterly reports documenting the wages paid to their employees, in accordance with Ohio's unemployment insurance regulations. These reports can conveniently be submitted online through The SOURCE platform. It's important to note that these reports must be filed by specific due dates, with adjustments made if the due date falls on a weekend, in which case the reports are due the subsequent business day. Even if an employer didn't have any employees or didn't disburse any wages during a quarter, they are still obligated to complete and submit these reports by the specified due dates.
| Reporting Period | Due Date |
|---|---|
| Quarter 1 | April 30 |
| Quarter 2 | July 31 |
| Quarter 3 | October 31 |
| Quarter 4 | January 31 |
Employers who file the required wage information after December 31, 2023, but within 18 months of that date, will face a penalty. Their 2024 rate will be revised to 120% of what their rate would have been if they had furnished the information on time.
Have all the information handy?
With SecurePayStubs, you can calculate accurate federal and Ohio state taxes for your employees and generate pay stubs securely.
Processing payroll manually is complex
As a business owner who runs payroll manually, you will need to keep up with ever-changing payroll laws. You already have a lot on your plate and you might not want to get into the complex process of pay stub generation.
With SecurePayStubs' paystub generator, you can swiftly generate accurate pay stubs for your employees, including federal and Ohio state taxes, as well as for independent contractors, all in less than 2 minutes. Simply input essential employee and employer details, choose a complimentary pay stub template for free, and allow SecurePayStubs to accurately compute Ohio payroll taxes with its user-friendly Ohio payroll tax calculator.
Spend less time generating pay stubs and more on your business growth.
This article has been updated from its original publication date of April 8, 2024.