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Payroll and Benefits Guide United States – Ohio

Last updated: Apr 04, 2023

Currency
United States Dollar (USD)
Employer Taxes
11.25% – 26.15%
Payroll Frequency
Monthly/Semi-monthly
Employee Costs
8.55%
Capital
Columbus
Date Format
mm/dd/yyyy
Fiscal Year
1 January - 31 December
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Contribution

Employer Employer Payroll Contributions
0.40% – 10.10% Unemployment Insurance (state), applied on salary up to 9,000 USD annually.
2.70% Unemployment- New Employer (state), applied on salary up to 9,000 USD annually.
6.20% FICA Social Security (federal), applied on salary up to 168,000 USD annually.
1.45% FICA Medicare (federal)
0.60% – 6.00% The FUTA (Federal Unemployment Tax Act)  tax rate is 6.0% applied on salary up to 7,000 USD. However, if states operate their unemployment insurance programs in compliance with federal law then the FUTA tax is reduced (credit) by 5.4% t0 .6%.
11.25% – 26.15% Total Employment Cost
Employee Employee Payroll Contributions
6.20% FICA Social Security (federal), applied on salary up to 168,000 USD annually.
1.45% FICA Medicare (federal)
0.90% Additional tax on earnings over 200,000 USD. High-income earners also pay an additional 0.9% in Medicare taxes.
7.65%-8.55% Total Employee Cost
State Employee Income Tax
State Tax – Single
2.75% 26,050.00 USD to 100,000.00
3.688% 100,000.01 USD to 115,300.00 USD
3.75% 115,300.00 USD and above
Federal Employee Income Tax
Federal Tax – Singles
10.00% Up to 11,600 USD
12.00% 11,601 USD to 47,150 USD
22.00% 47,151 USD to 100,525 USD
24.00% 100,525 USD to 191,950 USD
32.00% 191,950 USD to 243,725 USD
35.00% 243,725 USD to 609,350 USD
37.00% 609,350 USD or more
Federal Tax – Married, filing jointly
10.00% Up to 22,000 USD
12.00% 22,001 USD to 89,450 USD
22.00% 89,451 USD to 190,750 USD
24.00% 190,751 USD to 364,200 USD
32.00% 364,201 USD to 462,500 USD
35.00% 462,501 USD to 693,750 USD
37.00% 693,751 USD or more
Federal Tax – Heads of Households Federal Tax – Heads of Households
10.00% Up to 15,700 USD
12.00% 15,701 USD to 59,850 USD
22.00% 59,851 USD to 95,350 USD
24.00% 95,351 USD to 182,100 USD
32.00% 182,101 USD to 231,250 USD
35.00% 231,251 USD to 578,100 USD
37.00% 578,101 USD or more
Standard Deduction and Personal Exemption
14,600.00 USD Single
29,200.00 USD Married Filing Jointly
21,900.00 USD Head of Household

Minimum Wage

General

The hourly minimum wage is 10.10 USD for businesses with annual gross receipts of 372,000.00 USD per year.

If a business has annual gross receipts of less than 372,000.00 USD, the minimum wage is 7.25 USD.

Payroll

Payroll Cycle

Employees are paid either semi-monthly or monthly, with payment dates outlined in the employment contract. Payments are generally made on or before the 1st and 15th of each month.

13th Salary

There are no provisions in the law regarding 13th salaries.

Working Hours

General

In Ohio, the work week is 40 hours or 8 hours per day.

Overtime

Ohio adheres to the Fair Labor Standards Act (FLSA) and overtime consists of any work exceeding four hours beyond the standard work week. Overtime is paid at the rate of 150% of the regular pay. If employees are scheduled to work on weekends or rest days, no additional payment is required. However, should an employer request an employee work in exceptional circumstances on these days, overtime is 150% of the regular pay.

Leave

Annual Leave (vacation)

Public holidays are not mandatory paid days off, but employers commonly allow workers to take federal holidays as paid days off.

Some companies might also agree to allow workers to take off state holidays; workers can find specific state holiday dates from their local government.

Usually when an agreed public holiday falls on a weekend, a day off in lieu is given on the Friday before or the Monday after the holiday.

Date Day Holiday Note
1 Jan 2024 Monday New Year’s Day
15 Jan 2024 Monday Martin Luther King Jr. Day
19 Feb 2024 Monday Presidents Day
27 May 2024 Monday Memorial Day
19 Jun 2024 Wednesday Juneteenth Independence Day
4 Jul 2024 Thursday Independence Day July
2 Sep 2024 Monday Labor Day
14 Oct 2024 Monday Columbus Day
11 Nov 2024 Monday Veterans Day
28 Nov 2024 Thursday Thanksgiving Day
25 Dec 2024 Wednesday Christmas Day

 

Sick Days

Sick leave falls under the Family and Medical Leave Act (FMLA), which provides leave for an employee with a serious health condition that makes them unable to perform the essential functions of their job.

It is common for an employer to follow the FMLA which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons (maternity leave, serious illnesses, or if the employee needs to care for a spouse or child).

Employees are eligible for FMLA if they have worked for their employer for at least one year, completed a minimum of 1,250 hours over the past year, and worked at a location where the company employs 50 or more employees within 75 miles.

In addition, all Ohio employers must provide one hour of paid sick leave for every 30 hours worked up to an annual maximum of 40 hours of paid sick leave.

Maternity Leave

Maternity leave falls under the FMLA (see sick leave) which allows a mother:

  • Twelve working weeks of leave in any one year for a child’s birth and to care for the newborn within one year of birth

In addition to the FMLA, Ohio has the Ohio Civil rights Act which enhances the rights of pregnant employees and entitles employees who work an average of 30 hours per week to six continuous weeks of paid leave.  This is also applicable to adoptive parents.

Paternity Leave

Paternity leave falls under the FMLA (see sick leave), which allows fathers:

  • Twelve working weeks of leave in any one year for a child’s birth and to care for the newborn within one year of birth

See Sick leave above.

Parental Leave

Parental leave falls under the FMLA (see sick leave), which allows for:

  • Leave for the adoption or foster care of a child and care for the newly placed child within one year of placement
  • Any qualifying necessity arising out of the fact that the employee’s spouse, son, daughter, or parent is a covered military member on covered active duty

Other Leave

Leave for the care of an employee’s spouse, child, or parent who has a severe health condition falls under the FMLA (see sick leave).

Alternatively, if an employee is a service member’s spouse, son, daughter, parent, or next of kin (military caregiver leave), they may take 26 working weeks of leave during a single one-year period to attend to the service member’s serious injury or illness.

Other leave under Ohio law includes:

  • Job-protected but unpaid leave for full-time employees for jury duty, as a witness in a case, responding to a subpoena, or acting as a plaintiff or defendant in the courts. Employees must provide a copy of the jury summons to the employer as evidence of requirement.
  • Unpaid leave for registered voters to vote in any municipal, county, state, or federal primary or general election.  Employees must provide reasonable notice to their employers to take time off to vote.

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

Except in mass dismissals or as provided for in an employment contract or a collective bargaining agreement, U.S. law does not impose a formal notice period to terminate an individual employment relationship and employment is stipulated at will. This means that either the employer or the employee may end the employment relationship without giving either notice or reason, provided it is not illegal, notable discrimination on the grounds of a category protected by law, and as per the Federal Worker Adjustment and Retraining Notification Act (WARN).

The employment contracts of executives and other highly skilled individuals often incorporate a just cause termination clause which mandates that the employer may only terminate the employee for cause and lists the permissible grounds. In such cases, the parties negotiate the foundations for a just cause termination.

Notice Period

There are no provisions in the law outlining notice, however, dismissal in Ohio follows the federal Worker Adjustment and Retraining Notification Act (WARN) which outlines 60 days’ notice for mass layoffs.

Severance Pay

In Ohio, most employees are employed at-will and either party can terminate the employment relationship without notice. In Ohio, payout for unused vacation time is not required by law. However, employers will generally pay an employee for unused vacation days, provided the employee gave some advanced notice of resignation. There is no official notice period, but general practice is two weeks as a minimum threshold.

In mass dismissal cases, the Worker Adjustment and Retraining Notification Act (WARN Act) must be followed, and employers must give 60 days’ notice to impacted employees.

Probation Period

No legal provision governs a formal “trial /probation period.” However, it is common practice for employers to set a performance evaluation after an initially stated period of employment of 90 days.

VISA

VISA

Foreign nationals without permanent resident status or a work visa are not permitted to work in the United States. An employer seeking to hire a foreign national may file a petition with the United States Department of Homeland Security/United States Citizenship and Immigration Services (USCIS) for an employment visa on behalf of the prospective employee. If the petition is approved, the prospective employee must obtain a visa stamp from a United States embassy or consulate (Canadian citizens are exempt from this requirement). To get a temporary U.S. work visa, an employer must file a petition with U.S. Citizenship and Immigration Services (USCIS). An approved petition must be part of the visa request. The types of visas include:

  • H-1B – For applicants with a college degree hired to do specialized work. The visa is valid for three years and can be extended for an additional three years. The visa is connected to the employer that filed the petition. If there is a change of employer, the new employer must repeat the process. There are 65,000 H-1B visas available each year.
  • H-1B1 – For applicants with a college degree from Chile and Singapore. The US government grants up to 1,400 visas to Chilean citizens and 5,400 from Singapore each year.
  • H-2A – For temporary or seasonal agriculture work. It is limited to citizens of qualified countries. Usually valid for up to one year and can be extended to a maximum of three years.
  • H-2B – For temporary non-agricultural work. These visas are limited to citizens of qualified countries. Usually valid for up to one year and can be extended to a maximum of three years.
  • L – For intercompany transfers (people transferred from a foreign company to a U.S. branch of the company.) The applicant must have been employed at the company for a year before the transfer and work in a managerial-level position or higher with specialized knowledge.
  • 0 – For people with extraordinary ability in science, arts, education, business, or athletics.

The standard procedure is to obtain a short-term work visa and then apply for an immigrant visa after the employee has started working in the United States.

For those seeking employment-based immigrant visas:

  • E-1 – Highest priority employment for those with extraordinary ability in science, arts, education, business, and athletics.
  • E-2 – For those with advanced degrees or exceptional ability.
  • E-3 – For skilled workers and professionals as well as unskilled workers.
  • E-4 – Members of certain immigrant groups.
  • E-5 – Immigrant investors in U.S. companies (substantial investment)

Alternatively, an employer may sponsor a potential employee’s application for permanent resident status, referred to as a green card, if the employer can establish that the potential employee is a multinational executive/manager transferee, has unique skills, or has been offered a job in the United States. The employer must have been unable to recruit a U.S. worker who meets the position’s minimum requirements.

All employers are obligated to verify that all individuals they employ are authorized to work in the United States.

VAT

General

Ohio has a minimum combined sales tax rate of 7.23% (state tax is 5.75% and local tax is 1.48%).

Stay up to date on payroll & employment law changes

Version History

February 14, 2022
The hourly minimum wage is now 9.30 USD for businesses with annual gross receipts of 323,000.00 USD per year.
Payroll contributions and personal income tax rates have been updated.
January 1, 2021
Minimum wage: rose to $8.80 for business with annual gross receipts of $323,000 per year.
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Payroll and Benefits Guide in United States – Ohio

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Payroll and Benefits Guide
in United States – Ohio

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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Public Holidays Calendar

United States – Ohio
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CSV
PDF
ICS
Date Day Holiday Note
1 Jan 2024 Monday New Year’s Day
15 Jan 2024 Monday Martin Luther King Jr. Day
19 Feb 2024 Monday Presidents Day
27 May 2024 Monday Memorial Day
19 Jun 2024 Wednesday Juneteenth Independence Day
4 Jul 2024 Thursday Independence Day July
2 Sep 2024 Monday Labor Day
14 Oct 2024 Monday Columbus Day
11 Nov 2024 Monday Veterans Day
28 Nov 2024 Thursday Thanksgiving Day
25 Dec 2024 Wednesday Christmas Day