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Payroll in Ohio

Payroll services for Ohio businesses.

Visory provides payroll services for Ohio businesses with staff across the state. A dedicated Payroll Specialist runs each pay run remotely in your own payroll platform, handling state, school district, and city withholding, itemized pay statements, and the report every new hire needs. Delphi AI takes the repetitive parts, overseen by the team. You approve each run before anyone is paid. One flat monthly fee.

  • A dedicated team you know by name
  • Ohio rules in every pay run and close
  • One flat monthly fee for the agreed scope
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Downtown Columbus and the LeVeque Tower above the Scioto River and the Scioto Mile parkland, seen from the Main Street Bridge.
Photo: Jordan Griffith, Unsplash License

Payroll in Ohio

What every Ohio pay run covers.

A dedicated team prepares each pay run, checks it, and sends it to you to approve before anyone is paid. Six things are right every time.

  • Withholding, every run Federal withholding, and state and local taxes where they apply, worked out in every run from each employee’s own forms.
  • Filed on schedule Quarterly and annual payroll tax filings prepared from the same runs and filed on schedule by your payroll platform, so nothing is rebuilt at the deadline.
  • Unemployment insurance Ohio contributions worked out on each employee’s wages, up to the state’s taxable wage base.
  • Leave that adds up Paid leave accrued in the file to your own leave policy, so balances are right when someone asks.
  • Paid on the right day Pay frequency and final pay set to the state’s rules, and every run approved by you before anyone is paid.
  • New hires, set up properly New employees reported to the state and set up before their first pay run.

Ohio rules

The Ohio rules every pay run works to.

Six rules set by Ohio, each with the law that sets it and what it does to your month. Your team works to them every pay run and every close.

Last year’s total sets this year’s deposits.

The schedule follows withholding in the 12 months to June 30 of the prior year, so a growing payroll can move to monthly or partial-weekly deposits from January, and the books track that total as it builds.

Set by Ohio Revised Code 5747.06; Ohio employer withholding tables

Every employer with an office or business in Ohio withholds Ohio income tax from residents and nonresidents, using tables effective August 1, 2026 that withhold at 1.6%, 2.99%, and 3.4% after exemptions; bonuses and other supplemental pay are withheld at 2.75%. Residents of Indiana, Kentucky, Michigan, Pennsylvania, and West Virginia working in Ohio are exempt. With $2,000 or less of state and school district tax withheld in the 12 months to June 30 of the prior year, deposits are quarterly; under $84,000, monthly within 15 days; $84,000 or more, partial-weekly.

Ohio Revised Code 5747.06; Ohio employer withholding tables; withholding tables effective August 1, 2026.

Sources Ohio Department of Taxation: Employer withholding Ohio Department of Taxation: Employer withholding tables, percentage method, effective August 1, 2026

The whole cost lands in the first quarter.

With only $9,000 of wages taxed per employee, most staff reach the cap within weeks, so January to March carries nearly all of the year’s cost, and later quarters carry it mainly for new hires.

Set by Ohio Revised Code 4141.25 and 4141.251

Employers pay contributions on the first $9,000 of each employee’s wages, unchanged from 2023 through 2026. For 2026, experience rates run from 0.4% to 10.1%, and every rate carries a 0.15% technology and customer service fee; new employers pay 2.85% in total, and new construction employers 5.85%. Quarterly wage reports are due April 30, July 31, October 31, and January 31, even for a quarter with no wages paid.

Ohio Revised Code 4141.25 and 4141.251; rate year 2026, computation period ending June 30, 2025.

Sources Ohio Department of Job and Family Services: Contribution rates, 2023 to 2026 Ohio Department of Job and Family Services: 2026 rate details Ohio Department of Job and Family Services: Unemployment insurance tax for new employers US Department of Labor: Significant Provisions of State Unemployment Insurance Laws, effective January 2026 Ohio Administrative Code: Rule 4141-11-02, quarterly payments, interest, and due date

The rate moves every January.

Ohio ties its minimum wage to inflation, so pay rates near the floor, including tipped cash wages, are reviewed before the first pay run of 2027, when $11.00 becomes $11.40.

Set by Ohio Constitution, Article II, Section 34a; Ohio Revised Code 4111

Ohio’s minimum wage is $11.00 an hour for non-tipped employees and $5.50 for tipped employees in 2026, for businesses above the $405,000 gross receipts threshold. On January 1, 2027, the rates rise 3.5% with inflation, to $11.40 and $5.70, and the threshold to $419,000. Employees of smaller businesses, and 14- and 15-year-olds, are paid at least the federal $7.25. Employers must display the official 2027 minimum wage poster.

Ohio Constitution, Article II, Section 34a; Ohio Revised Code 4111; 2026 rates; $11.40 and $5.70 from January 1, 2027.

Sources Ohio Department of Commerce: Ohio minimum wage to increase by 3.5% in 2027 Ohio Department of Commerce: Ohio minimum wage laws

The CAT is a cost, not a collection.

Unlike sales tax, it comes out of margin once receipts pass $6 million, so a growing business budgets for it, while sales tax on any taxable services is held apart for the return.

Set by Ohio commercial activity tax; Ohio sales and use tax

The commercial activity tax is 0.26% of Ohio taxable gross receipts, paid by businesses with more than $6 million of them a year, on quarterly returns, and it cannot be billed to customers. Sales tax, 5.75% plus county and transit rates up to 8.75% in all, applies to goods and listed services, including business data processing, electronic information, security, and building cleaning services. Accounting, legal, and business consulting services are not taxable.

Ohio commercial activity tax; Ohio sales and use tax; $6 million CAT threshold for tax years 2025 and after.

Sources Ohio Department of Taxation: Commercial activity tax Ohio Department of Taxation: Sales and use tax Ohio Department of Taxation: Sales and use taxability

The pay stub is part of the record.

Every deduction appears itemized on the statement, so the payroll file and the books carry the same deduction lines, and an employee’s request can be answered from them well inside 10 business days.

Set by Ohio Revised Code 4113.15; Pay Stub Protection Act

Employers pay wages earned from the 1st to the 15th of a month by the 1st of the next month, and wages earned in the rest of the month by the 15th of the next month; daily or weekly pay is also allowed. Under the Pay Stub Protection Act, from April 9, 2025, each pay statement shows total earnings for the pay period, itemized deductions such as taxes, benefits, and garnishments, and hours worked where applicable. An employee who asks for the information and does not get it within 10 business days may complain to the Division of Wage and Hour.

Ohio Revised Code 4113.15; Pay Stub Protection Act; pay statement requirements effective April 9, 2025.

Sources Ohio Department of Commerce: Ohio minimum wage laws Ohio Department of Commerce: Pay Stub Protection Act information Ohio Laws: Ohio Revised Code 4113.15, semimonthly payment of wages

Contractors count as new hires.

A contractor engaged in Ohio is reported much like an employee, so new contractor setups in accounts payable are flagged to payroll, and both reports are made within the 20 days.

Set by Ohio new hire reporting law; federal new hire reporting law

Ohio employers report all newly hired employees and independent contractors who live or work in Ohio within 20 days of their start dates, through the Ohio New Hire Reporting Center, online, electronically, by mail, or by fax. Contractors are reported when they are expected to be paid $2,500 or more, with their name, address, Social Security number, the date payment begins, and how long they will work for the employer.

Ohio new hire reporting law; federal new hire reporting law.

Sources Ohio Department of Job and Family Services: Report new hires and changes in status Ohio Department of Job and Family Services: Independent contractors US Office of Child Support Services: State new hire reporting contacts and requirements

Rules last checked October 9, 2026 against the sources at the foot of this page. General information only. It does not take your circumstances into account.

Local rules

Where the rules change across Ohio.

Your team applies the local rules as well as the Ohio ones. These are the places where a local tax, a wage rate, or a leave law differs from the rest of the state.

The cupola of the Ohio Statehouse in Columbus, flanked by two American flags against a blue sky.
Photo: Elessar, CC BY 2.0, cropped

Columbus

Columbus taxes wages earned in the city at 2.5%, including work done from home there, with deposit dates set by the size of the withholding.

  • Employers with employees working in Columbus, or in the Madison Township, North Pickaway County, and Prairie Township JEDDs it administers, withhold 2.5% of qualifying wages earned there, including from home.
  • Deposits are semi-monthly once withholding passed $11,999 last year or $1,000 in any month, monthly from $2,400 or over $200 in any month last quarter, quarterly otherwise, and daily for next-day federal depositors; the IT-11 quarterly return is due April 30, July 31, October 31, and January 31.
  • Late withholding payments can draw a penalty of 50% of the late tax plus interest, and the employer and its officers are liable for tax that should have been withheld, even if it was not.
Downtown Cleveland and Terminal Tower above the Cuyahoga River on a clear winter day.
Photo: DJ Johnson, Unsplash License

Cleveland

Cleveland taxes income at 2.5%, collected by its Division of Taxation, with full credit for residents’ tax paid to other cities, up to 2.5%.

  • The 2026 Cleveland rate is 2.50%, and residents get a 100% credit, up to 2.50%, for municipal tax paid where they work, so tax withheld for the work city counts against the Cleveland bill.
  • Monthly withholding payments are due by the 15th of the following month, and quarterly payments by April 30, July 31, October 31, and January 31.
  • The annual W-3 reconciliation, with the year’s W-2 forms, is due by February 28, the same date as the Columbus year-end reconciliation, Form IT-13.

School districts with an income tax

School districts that levy an income tax add a second withholding for employees who live in them, and six new district taxes began on January 1, 2026.

  • Employers withhold school district income tax from employees who reside in a taxing district, wherever they work, identified by the district’s four-digit code, which also goes on each W-2.
  • Traditional-base districts withhold on the same wage base and exemptions as state tax; earned-income-only districts withhold at a flat rate with no reduction for personal exemptions.
  • New taxes start each January: from January 1, 2026, Westerville CSD in Franklin and Delaware counties withholds 0.75% on earned income, one of six new school district taxes.

How it works from anywhere

Can a team outside Ohio run an Ohio business?

Yes. Visory’s US leadership team is in New York, and its teams work with businesses across the United States remotely, inside your own accounting file, so nothing about the work depends on where your office is.

Your own file

Your books stay in your own QuickBooks or Xero file. Your team works inside it, so you see the same numbers they do, whenever you look.

A team you know by name

A dedicated team runs the work, led by a Business Performance Partner. You meet them by video call, and you always know who to ask.

Ohio rules, built in

Visory runs the finance function for growing businesses across the United States, with its US leadership team in New York. Your books stay in your own QuickBooks or Xero file, and your team works inside it with you. Every pay run and every close is checked against the rules on this page.

Business hours, and the platform after them

Your team works 9am to 5pm Eastern Time on business days, all year round, and the Visory platform is open to you around the clock for documents, approvals, and your numbers.

What we run for Ohio businesses

The whole finance function, actually handled.

Bookkeeping, payroll, accounts payable, and accounts receivable, run end to end by a dedicated team with Delphi AI working under their oversight. Flat monthly fee. No hourly billing.

Bookkeeping

Every transaction coded and reconciled, month-end closed on schedule.

Explore bookkeeping

Payroll

Pay runs prepared, checked, and paid on time, every cycle.

See how payroll runs

Accounts payable

Bills captured, checked against what's already paid, and paid when you say so.

See accounts payable

Accounts receivable

Invoices out on schedule, overdue accounts followed up in your name.

See accounts receivable

Visory Insights

Once a month: what changed, what it means, and what to do next.

See how Insights works

Business Performance Partner

A named partner who walks you through the numbers and the next move.

How your partner works

Bookkeeping services in Ohio

What customers say

In a customer’s words.

“I have enough people to manage, so it's nice having a partner that ensures nothing is missed when it comes to the very important process of remunerating our people.”

Rachelle Harper Co-founder and COO, BrandBossHQ

Common questions

Questions Ohio businesses ask.

Straight answers about payroll for an Ohio business, from a team that works remotely.

What does a Visory pay run for an Ohio business include?

Your Payroll Specialist runs each pay run, with Delphi AI preparing and checking it in the background, and you approve it before anyone is paid. The Payroll Specialist handles new hires, leave, changes, and terminations, applies Ohio, school district, and city withholding where each applies, and posts the run to your books, so wages, deductions, and leave balances agree every month.

What hours does my payroll team work?

Your payroll team works 9am to 5pm Eastern Time on business days, all year round. Outside those hours, the Visory platform is your 24/7 access point, so your payroll information is there whenever you need it.

How often do I have to pay employees in Ohio?

At least twice a month: wages for the 1st to the 15th are paid by the 1st of the next month, and wages for the rest of the month by the 15th of the next month. Each pay statement must show total earnings for the period, itemized deductions, and hours worked where they apply, under the Pay Stub Protection Act in force from April 9, 2025. This is general information; the Ohio Department of Commerce enforces the rules.

What is the Ohio minimum wage in 2026 and 2027?

It is $11.00 an hour, and $5.50 for tipped employees, in 2026 for businesses above the $405,000 gross receipts threshold. On January 1, 2027, it rises to $11.40 and $5.70, and the threshold to $419,000. Smaller businesses pay at least the federal $7.25. Your Payroll Specialist updates rates before the first 2027 pay run.

Who has Ohio school district income tax withheld?

Employees who live in a school district with an income tax, wherever they work. Six new district taxes began on January 1, 2026, including 0.75% in Westerville CSD, and some districts tax only earned income at a flat rate. So your payroll file needs a current home address and district code for everyone. This is general information; the Ohio Department of Taxation sets the rules.

What do I have to do when I hire someone in Ohio?

Report the new employee to the Ohio New Hire Reporting Center within 20 days of their start date, and report independent contractors the same way when they are expected to be paid $2,500 or more. Your Payroll Specialist prepares the report when the employee is set up, before the first pay run, and flags new contractors from accounts payable.

What is the Ohio unemployment insurance wage base in 2026?

Contributions are paid on the first $9,000 of each employee’s wages in 2026, as in every year since 2023. Experience rates run from 0.4% to 10.1%, plus a 0.15% fee, and new employers pay 2.85% in total, or 5.85% in construction. Your Payroll Specialist prepares the quarterly wage report from the same pay runs.

When is Ohio withholding paid over?

It depends on the state and school district tax withheld in the 12 months to June 30 of the year before: $2,000 or less, quarterly by the last day of the month after each quarter; more than $2,000 but under $84,000, monthly within 15 days of each month’s end; $84,000 or more, partial-weekly by electronic funds transfer within three banking days after each partial-weekly period. The schedule is set again each calendar year, so a growing payroll can move to a faster one in January. This is general information; the Ohio Department of Taxation sets the rules.

How often do I deposit Columbus city tax?

It depends on last year’s withholding: semi-monthly once it passed $11,999 or $1,000 in any month, monthly from $2,400, quarterly otherwise, and daily for next-day federal depositors. The 2.5% applies to wages earned in Columbus, including at home there. The quarterly return is due a month after each quarter ends. This is general information; the Columbus Income Tax Division sets the rules.

More questions, longer answers. Every question has its own link. See all common questions

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Sources (22) · rules last checked October 9, 2026

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