Payroll Ohio Unique Aspects of Ohio Payroll Law and Practice
Below is a MRR and PLR article in category Business -> subcategory Other.
Unique Aspects of Ohio Payroll Law and Practice
Overview
Ohio payroll has some distinct characteristics and regulations. This guide provides detailed insights into various aspects, such as tax withholding and reporting, unemployment insurance, wage and hour laws, and child support withholding.
Ohio State Income Tax Withholding
The Department of Taxation oversees the collection and reporting of state income taxes deducted from payroll checks.
- Contact Information:
- Address: P.O. Box 2476, Columbus, OH 43266-0076
- Phone: (614) 433-7887 or (888) 405-4039
- Website: [Ohio Tax](http://www.state.oh.us/tax)
Ohio requires the use of the "IT-4, Employee's Withholding Exemption Certificate" instead of the Federal W-4 Form for state income tax withholding.
Cafeteria Plans and 401(k)
Ohio handles salary reductions under Section 125 cafeteria plans and 401(k) differently from the IRS code:
- Cafeteria Plans: Not taxable for income or unemployment insurance purposes.
- 401(k) Deferrals: Not taxable for state income taxes but are for unemployment purposes.
Supplemental Wages
In Ohio, supplemental wages are taxed at a flat rate of 3.5%.
Filing W-2s
Employers have the option to file Ohio State W-2s electronically or by magnetic media.
Unemployment Insurance
The Ohio Department of Job and Family Services manages unemployment insurance.
- Contact Information:
- Address: 52 Robinwood Ave., Columbus, OH 43213
- Phone: (614) 466-2100
- Website: [Ohio Unemployment](http://www.state.oh.us/odjfs)
- Taxable Wage Base: Wages up to $9,000.00
- Employers can optionally report quarterly wages via magnetic media.
- Records must be retained for at least five years.
Wage and Hour Laws
The Department of Commerce - Division of Labor and Worker Safety enforces wage and hour laws.
- Contact Information:
- Address: 50 West Broad St., Columbus, OH 43215
- Phone: (614) 644-2239
- Website: [Ohio Labor](http://www.state.oh.us/Business/Employer/ProtectingYourBusiness/Wages.htm)
- Minimum Wage:
- $5.15 per hour for large employers,
- $3.35 for medium employers,
- $2.80 for small employers.
- Overtime: Paid at 1.5 times the regular rate after 40 hours per week for non-FLSA covered employers.
New Hire Reporting
Employers must report all new hires and rehires with the following information within 20 days:
- Employee’s name, address, date of birth, date of hire, social security number.
- Employer’s name, address, Federal EIN.
- Penalties: $25 for late reports; $500 for conspiracy.
- Contact Information for New Hire Reporting:
- Phone: (888) 872-1490 or (614) 221-5330
- Website: [Ohio New Hire](http://www.oh-newhire.com)
Payment Regulations
- Employers are allowed to mandate direct deposit, subject to federal regulations.
- Pay frequency: No less than semimonthly; possibly monthly if agreed by contract.
Final Wages and Other Provisions
- Final wages: No specific Ohio law stating when they must be paid upon termination.
- Deceased employee wages up to $2,500 are paid to surviving family in a specified order.
- Escheat Laws: Unclaimed wages are sent to the state after one year, with record retention required for five years.
Child Support Withholding
The Office of Child Support manages regulations for child support deductions.
- Contact Information:
- Address: State Office Tower, 30 E. Broad St., 31st Fl., Columbus, OH 43266-0423
- Phone: (614) 752-6561
- Website: [Ohio Child Support](http://www.ohio.gov/odhs/Ocs/index.htm)
- Provisions:
- Start withholding: 14 working days after order is mailed.
- Payment must be sent within 7 days of payday.
- Termination notice: Within 10 days of employee termination.
- Administrative fee: Greater of $2 or 1% of payment.
- Adheres to federal CCPA withholding limits.
Note
This article might not reflect recent changes in the law. Always consult official resources or legal counsel for current information.
You can find the original non-AI version of this article here: Payroll Ohio Unique Aspects of Ohio Payroll Law and Practice.
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