Payroll and Benefits Guide - United States - Ohio

United States - Ohio
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Currency

United States Dollar
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Capital

Columbus
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Employer Taxes

11.25% – 26.15%
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Date Format

mm/dd/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Ohio is known as the “Buckeye State” because of its abundance of Ohio buckeye trees, and its residents are sometimes called “Buckeyes” as well.

Ohio is home to the Rock and Roll Hall of Fame, located in Cleveland. The museum celebrates the history and impact of rock and roll music.

The world’s largest basket-shaped building, known as the Longaberger Basket Company headquarters, is located in Newark, Ohio.

Ohio is the birthplace of seven U.S. presidents, more than any other state.

Ohio has a strong aviation history.

The state’s official rock song is “Hang On Sloopy” by The McCoys.

United-States-Ohio

Contributions

Employee Payroll Tax

Contribution TypeRate
FICA Social Security6.20%
FICA Medicare1.45%
Additional tax0.90%

Employer Payroll Tax

Contribution TypeRate
Unemployment Insurance0.30% – 9.80%
Unemployment- New Employer2.70%
FICA Social Security6.20%
FICA Medicare1.45%
The FUTA0.60% – 6.00%

Payroll

Payroll Cycle

Employees receive their wages on a semi-monthly or monthly basis as specified in their employment agreement. Typically, the payment dates fall on or before the 1st and 15th of every month.

13th Salary

There are no laws requiring 13th salary.

Work Hours and Week

The average workweek consists of 40 hours, or 8 hours per day from Mondays to Fridays.

Overtime

In Ohio, the Fair Labor Standards Act (FLSA) governs labor practices, and any work exceeding 4 hours per week is considered overtime. Overtime compensation is set at 150% of the regular pay rate. If employees have regular schedules on weekends or rest days, no extra payment is necessary.

Nevertheless, if employers require employees to work on these days due to exceptional circumstances, overtime pay at 150% of the regular rate is applicable.

United-States-Ohio

Leave

Paid Time Off

Ohio lacks specific state laws regulating the quantity and remuneration of vacation time. Nevertheless, it is customary for employers to determine whether to provide paid or unpaid vacation leave, ensuring compliance with employment laws and clearly specifying the terms in collective bargaining agreements.

Public Holidays

There are 11 official holidays in Ohio.

Sick Days

Sick leave in Ohio is governed by the Family and Medical Leave Act (FMLA), which grants employees time off when they have a severe health condition that hinders them from fulfilling their job’s essential duties.

Typically, employers adhere to the FMLA, which grants eligible employees up to 12 weeks of unpaid and protected leave per year for specific family and medical reasons, such as maternity leave, dealing with serious illnesses, or providing care for a spouse or child.

To qualify for FMLA benefits, employees must meet specific criteria, including having worked for their employer for a minimum of one year, completing at least 1,250 hours of work over the past year, and being employed at a company location with 50 or more employees within a 75-mile radius.

Moreover, in Ohio, employers are required to offer one hour of paid sick leave for every 30 hours worked, with a maximum annual limit of 40 hours of paid sick leave.

Maternity Leave

Maternity leave, which is covered by the FMLA as mentioned in the context of sick leave, provides mothers with the following entitlements:

  • A total of twelve working weeks of leave within a year for the purpose of giving birth and taking care of the newborn child within one year of their birth.

Furthermore, in addition to the FMLA provisions, Ohio has implemented the Ohio Civil Rights Act, which provides additional rights and protections for pregnant employees. Under this act, employees who work an average of 30 hours per week are eligible for six consecutive weeks of paid leave. This benefit extends not only to birth mothers but also to adoptive parents.

Paternity Leave

Fathers are allowed to have twelve working weeks of leave in any one year for a child’s birth and to care for the newborn child within one year of birth.

Other Leave

Time off to provide care for an employee’s spouse, child, or parent facing a significant health condition is covered by the FMLA, as previously mentioned in the context of sick leave.

Alternatively, an employee may take up to 26 working weeks of leave within a consecutive one-year period to care for a covered servicemember who has sustained a serious injury or illness. This military caregiver leave is applicable if the eligible employee is the spouse, son, daughter, parent, or next of kin of the service member.

Termination

Termination Process

In the United States, unless there are mass dismissals or specific provisions in an employment contract or collective bargaining agreement, there is no legal requirement for a formal notice period when terminating an individual employment relationship. The concept of “at-will” employment prevails.

“At-will” employment means that either the employer or the employee can end the employment relationship without providing notice or stating a reason, as long as it does not violate laws, such as engaging in illegal activities or discriminating against protected categories defined by law. Exceptions to this include complying with the Federal Worker Adjustment and Retraining Notification Act (WARN) in cases of significant workforce reductions.

Notice Period

While there are no specific legal provisions regarding notice requirements for individual dismissals in Ohio, the state follows the guidelines set forth in the federal Worker Adjustment and Retraining Notification Act (WARN) when it comes to mass layoffs. Under WARN, employers are generally required to provide a notice period of 60 days in advance for significant workforce reductions.

Severance Pay

In Ohio, the majority of employees have “at-will” employment, meaning that either the employer or the employee can end the employment relationship without notice. The state does not have a legal requirement for employers to provide compensation for unused vacation time.

However, in practice, employers often choose to pay employees for their unused vacation days if the employee provided some advance notice before resigning. While there is no official notice period mandated by law, it is customary for employees to provide a minimum threshold of two weeks’ notice when resigning from their position.

Probation Period

Probation Period

There is no specific legal requirement for a formal probation period in Ohio. However, it is a customary practice for employers to conduct a performance evaluation after an initially specified period of employment, typically around 90 days.

Immigration

Foreign nationals who do not possess permanent resident status or a work visa are not permitted to work in the United States. To hire a foreign national, an employer can submit a petition to the United States Department of Homeland Security/United States Citizenship and Immigration Services (USCIS) to obtain an employment visa on behalf of the prospective employee.

Once the petition is approved, the prospective employee must obtain a “visa stamp” from a U.S. embassy or consulate, except for Canadian citizens who are exempt from this requirement. In order to secure a temporary U.S. work visa, the employer must file a petition with USCIS, and an approved petition is a necessary component of the visa application process.

VAT

In Ohio, the minimum total sales tax rate is 7.23%, consisting of a state tax rate of 5.75% and a local tax rate of 1.48%.