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Covers Ohio employer withholding of graduated state income tax and municipal income tax based on where work is performed, plus employer-paid unemployment insurance. Also outlines Ohio wage and hour rules and new hire reporting.
Ohio employers withhold graduated state income tax plus municipal income tax where the work is performed, and pay state unemployment insurance on the first $9,000 of each employee's wages. Employees do not pay SUI.
Last updated in source: 01/07/2026.
Ohio levies a graduated personal income tax with rates set by the Ohio Department of Taxation, has widespread municipal (city) income taxes administered at the local level, and requires employers to pay state Unemployment Insurance (UI) contributions — employers, not employees, pay SUI. Employers must also comply with Ohio wage and hour laws (which largely track the federal FLSA), new-hire reporting, municipal withholding rules and state child-labor requirements.
Ohio individual income tax uses bracketed rates published by the Ohio Department of Taxation; see the current annual rates table. Employers must withhold Ohio income tax per Department of Taxation employer withholding rules and tables.
Employers must register with the Ohio Department of Taxation for employer withholding and follow electronic filing and payment requirements. Municipal withholding rules and remittance frequency depend on local ordinances and employer payroll volume — verify city filing thresholds and periods.
Ohio municipal income taxes are a major payroll consideration. Most Ohio cities levy their own income tax and employers are generally responsible for withholding and remitting those taxes. Resident and nonresident rules vary.
The withholding rules changed in 2022 to require withholding to the municipality where the work is actually performed, including day-by-day or apportioned work in multiple municipalities. In practice that means you need to:
Changes coming out of recent state budget legislation and guidance mean employers should verify withholding destination rules — for example, where work is actually performed — and remit to the correct local tax authority. Consult the Ohio Department of Taxation municipal resources and the applicable city tax office for exact withholding rates and forms.
The state taxable wage base is $9,000 — the first $9,000 of wages is subject to Ohio SUI. Employers, not employees, pay Ohio UI contributions. Employer contribution rates are experience-rated and updated annually; new employer rates and ranges are published by the Ohio Department of Job and Family Services (ODJFS). Employers file quarterly reports and pay through ODJFS and Ohio Business Gateway systems. Employers receive rate notices in November for the following calendar year.
Employers must report all newly hired or rehired employees and certain contractors to Ohio New Hire Reporting within 20 days of hire.
Ohio's minimum wage is adjusted annually. Effective January 1, 2025 it is $10.70/hour for non-tipped employees. For tipped employees, Ohio's posted tipped cash wage is $5.35/hour plus tips, and tip-credit rules apply — tipped employees must receive at least the combined minimum when tips and cash wage are added. Employers who take a tip credit must ensure records show that tipped employees receive the required combined minimum. Posters and Ohio Department of Commerce guidance contain full details.
There is no statewide private-sector mandatory paid sick leave law in Ohio. Paid sick leave is generally employer-provided or governed by local/city ordinances or public-sector employer policies. Employers must check local city rules and any collective-bargaining obligations for public employees. Columbus and Cleveland, for example, have city-level policies and municipal employee leave rules, and public employers have statutory sick-leave accrual provisions in the Ohio Revised Code for state employees. Employers with municipal operations must follow applicable local rules.
Ohio codifies overtime consistent with the federal Fair Labor Standards Act (FLSA) — nonexempt employees are generally entitled to 1.5× pay for hours worked over 40 in a workweek, and state law incorporates FLSA exemptions. Employers must classify employees under FLSA tests (duties plus salary) and keep time records for nonexempt workers. See ORC 4111.03.
No Ohio statute requires private-sector employers to provide paid meal or rest breaks beyond federal rules. Short rest breaks — typically around 20 minutes — are generally compensable when provided; unpaid meal breaks may be unpaid when the employee is completely relieved of duty. Check collective agreements and city or public employer rules where applicable.
Ohio law requires semimonthly payment in most cases: wages for the first half of the prior month are paid by the 1st, and wages for the second half by the 15th. Employers must follow ORC 4113.15 timing rules and any additional municipal or contractual obligations for final pay. Confirm timing for discharged employees or those who quit in specific situations.
Ohio does not have a statewide mandatory private-sector automatic retirement program that applies to most private employers. Public-sector employees participate in state systems such as SERS and STRS, governed by state law. Employers should monitor legislative developments, but there is currently no general private-sector automatic-IRA mandate.
Employers must comply with Ohio wage deduction laws and federal garnishment limits. Child-support and court-ordered garnishments must be honored per state statutes and federal rules. Voluntary deductions require employee authorization. Consult the Ohio Revised Code and municipal rules for garnishment procedures.
Ohio child-labor statutes provide that minors aged 14–17 generally may be employed subject to work-permit and hour restrictions under Chapter 4109 of the Ohio Revised Code. Ohio's minimum-wage guidance notes that employees under 16 must be paid at least the current federal minimum wage if state rules provide a lower rate exception. Employers must maintain minor work permits and follow hour-of-work restrictions, hazardous-occupation prohibitions and posting requirements.
Employers must post required Ohio labor posters (minimum wage, workers' compensation, child labor abstracts) and maintain payroll and time records per the federal FLSA and state law. The Ohio Department of Commerce Wage and Hour Division provides mandatory poster resources, including the 2025 Minimum Wage poster.
Employers, not employees, pay Ohio UI contributions. The taxable wage base is the first $9,000 of wages, employer rates are experience-rated and updated annually by ODJFS, and employers file quarterly reports and pay through ODJFS and the Ohio Business Gateway.
Yes, in most cases. Many Ohio cities levy municipal income taxes and employers are generally responsible for withholding and remitting them to the municipality where the work is actually performed. Employers must register with and remit to each city or its collection agency and track where employees perform work, including remote days.
Effective January 1, 2025, Ohio's minimum wage is $10.70 per hour for non-tipped employees, with a posted tipped cash wage of $5.35 per hour plus tips. Tipped employees must receive at least the combined minimum once tips and cash wage are added together.
Effective January 1, 2026, Ohio's personal income tax withholding rate on bonuses and other supplemental compensation decreased from 3.5% to 2.75%, aligning it with Ohio's individual income tax rate structure for 2026 and later years.
Ohio law requires semimonthly payment in most cases: wages for the first half of the prior month are paid by the 1st, and wages for the second half by the 15th.