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Ohio’s payroll complexity is concentrated in two places: 600+ municipal income taxes by work location, and a monopolistic workers’ comp system through the state BWC. Rippling tracks both automatically.
Ohio is a major Midwestern economy with strengths in manufacturing, financial services, healthcare, and a growing technology sector centered in Columbus, Cleveland, and Cincinnati. Ohio’s payroll environment has two distinctive complexity areas: over 600 municipalities with their own income taxes (requiring city-by-city withholding based on work location), and a monopolistic workers’ compensation system through the state BWC. Ohio significantly simplified its state income tax in 2023. No state-mandated paid leave programs exist.
Rippling’s Ohio payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| FUTA | 6.0% (net 0.6%) | After SUTA credit; first $7,000 |
| Ohio SUTA (ODJFS) | New employer 2.7% | On first $9,000 of wages (2024) |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% | No wage base limit |
| Workers’ Compensation (BWC) | Varies by risk class | Mandatory; state monopoly — purchase through OH BWC only |
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| Contribution | Rate | Notes |
|---|---|---|
| Federal Income Tax | Graduated 10–37% | Per W-4 |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% + 0.9% surtax | Surtax above $200K single |
| Ohio State Income Tax | 0% up to $26,050; 2.75% $26,051–$100,000; 3.5% above $100,000 | Simplified 3-bracket structure (2023 reform) |
| Ohio Municipal Income Tax | 1–3% by city | Based on employee work location; 600+ municipalities |
| Ohio School District Tax (SDIT) | 0.25–3% | Based on employee home school district |
| Ohio Income | OH Rate |
|---|---|
| Up to $26,050 | 0% |
| $26,051–$100,000 | 2.75% |
| Above $100,000 | 3.5% |
Ohio withholding remitted to OH DOR via IT-501. Municipal income tax withheld separately per city. School district income tax (SDIT) also withheld if applicable. Annual IT-3 reconciliation.
Final Pay: Ohio requires final pay on the next regularly scheduled payday. No immediate payment requirement. Accrued vacation payout governed by employer policy.
WARN Act: Federal WARN Act applies (100+ employees). No separate Ohio WARN law.
Over 600 Ohio municipalities levy their own income taxes. Employers must withhold based on where the employee works: Columbus 2.5%, Cleveland 2.5%, Cincinnati 1.8%. RITA and CCA administer taxes for many municipalities. Rippling tracks Ohio municipal tax obligations by employee work location automatically.
Ohio is a monopolistic workers’ comp state — employers must purchase insurance through the Ohio Bureau of Workers’ Compensation (BWC) rather than private insurers. BWC premiums are based on payroll and risk classification. Employers register with BWC before their first employee starts and pay quarterly premiums.
Ohio simplified to 3 brackets in 2023: 0% on income up to $26,050; 2.75% on $26,051–$100,000; 3.5% above $100,000. This reduced Ohio’s prior top rate of 5.925% significantly, making Ohio more competitive on individual income tax than many neighboring states.
Ohio’s minimum wage is $10.45/hour (January 2024, indexed annually to CPI). Tipped employees: $5.25/hour. Small businesses with gross receipts under $385,000/year: $7.25/hour (federal minimum).
