Payroll Ohio, Unique Aspects of Ohio Payroll Law and Practice

The Ohio State Agency that oversees the				and $500 for conspiracy in Ohio.
collection and reporting of State income
taxes deducted from payroll checks is:				The Ohio new hire-reporting agency can be
				reached at 888-872-1490 or 614-221-5330 or on
Department of Taxation				the web at

P.O. Box 2476				Ohio does allow compulsory direct deposit but
				the employee's choice of financial
Columbus, OH 43266-0076				institution must meet federal Regulation E
				regarding choice of financial institutions.
(614) 433-7887
				Ohio has no State Wage and Hour Law
(888) 405-4039				provisions concerning pay stub information.

Ohio requires that you use Ohio form "IT-4,				Ohio requires that employee be paid no less
Employee's Withholding Exemption Certificate"				often than semimonthly; monthly if allowed by
instead of a Federal W-4 Form for Ohio State				custom of contract and wages paid by first of
Income Tax Withholding.				next month.

Not all states allow salary reductions made				Ohio requires that the lag time between the
under Section 125 cafeteria plans or 401(k)				end of the pay period and the payment of
to be treated in the same manner as the IRS				wages earned 1st half of month, pay by 1st of
code allows. In Ohio cafeteria plans are not				next month; wages earned 2nd half of month,
taxable for income tax calculation; not				pay by 15th of next month.
taxable for unemployment insurance purposes.
401(k) plan deferrals are not taxable for				Ohio has no general provision on when
income taxes; taxable for unemployment				terminated employees must be paid their final
purposes.				wages.

In Ohio supplemental wages are taxed at a				Deceased employee's wages of $2, 500 must be
3.5% flat rate.				paid to the surviving spouse, adult children,
				or parent (in that order).
You may file your Ohio State W-2s by magnetic
media if you choose to.				Escheat laws in Ohio require that unclaimed
				wages be paid over to the state after one
The Ohio State Unemployment Insurance Agency				year.
is:
				The employer is further required in Ohio to
Ohio Department of Job and Family Services				keep a record of the wages abandoned and
				turned over to the state for a period of 5
Unemployment Compensation Division				years.

52 Robinwood Ave.				Ohio payroll law mandates no more than $3.02
				(less for small and medium employers) may be
Columbus, OH 43213				used as a tip credit.

(614) 466-2100				In Ohio the payroll laws covering mandatory
				rest or meal breaks are only that minors
The State of Ohio taxable wage base for				under 16 must have 30 minutes rest after five
unemployment purposes is wages up to				hours of work.
$9,000.00.
				Ohio statute requires that wage and hour
Ohio has optional reporting of quarterly				records be kept for a period of not less than
wages on magnetic media.				three years. These records will normally
				consist of at least the information required
Unemployment records must be retained in Ohio				under FLSA.
for a minimum period of five years. This
information generally includes: name; social				The Ohio agency charged with enforcing Child
security number; dates of hire, rehire and				Support Orders and laws is:
termination; wages by period; payroll pay
periods and pay dates; date and circumstances				Office of Child Support
of termination.
				Ohio Department of Human Services
The Ohio State Agency charged with enforcing
the state wage and hour laws is:				State Office Tower

Department of Commerce				30 E. Broad St., 31st Fl.

Division of Labor and Worker Safety				Columbus, OH 43266-0423

Wage and Hour Bureau				(614) 752-6561

50 West Broad St.				Ohio has the following provisions for child
				support deductions:
Columbus, OH 43215
				When to start Withholding? 14 working days
(614) 644-2239				after the withholding order is mailed to the
				employer.
The minimum wage in Ohio is $5.15 per hour
(large employers), $3.35 (medium employers),				When to send Payment? Within 7 days of
and $2.80 (small employers).				Payday.

The general provision in Ohio concerning				When to send Termination Notice? Within 10
paying overtime in a non-FLSA covered				days of termination.
employer is one and one half times regular
rate after 40-hour week.				Maximum Administrative Fee? greater of $2
				or 1% of payment
Ohio State new hire reporting requirements
are that every employer must report every new				Withholding Limits? Federal Rules under
hire and rehire. The employer must report				CCPA.
the federally required elements of:
				Please note that this article is not updated
Employee's name				for changes that can and will happen from
				time to time.
Employee's address
				Charles J. Read, CPA has been in the payroll,
Employee's date of birthdate of hire				accounting and tax business for 30 years, the
				last fifteen in private practice.
Employee's social security number
				Mr. Read is the author of "How to Start a New
Employer's name				Business."

Employers address				To find professional payroll service at a
				budget price go to a paperless payroll
Employer's Federal Employer Identification				company.
Number (EIN)
				For a full service payroll bureau with CPA's
This information must be reported within 20				on staff visit .
days of the hiring or rehiring.
				See an excerpt of Mr. Read's interviews from
The information can be sent as a W4 or				William Shatners "Heartbeat of America"
equivalent by mail, fax or electronically.				television show on the web sites linked
				above.
There is a $25.00 penalty for a late report

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Payroll Ohio, Unique Aspects of Ohio Payroll Law and Practice