United States of America – Ohio
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Introduction
General Overview & Economic Facts
- The United States of America commonly known as the United States or America is a country located in North America. The United States consists of 50 states, a federal district 5 major unincorporated entities, 326 Indian reservations and some minor possessions
- Ohio is a state in the Midwestern region of the United States. Ohio is the 34th largest state out of the 50 states in America
- The United States has the 2nd largest economy by PPP and the 1st largest economy by nominal GDP. The Human Development Index in the United States is very high sitting at 0.926 as of 2019
Why Employ In United States of America – Ohio?
- The top industries in Ohio include insurance and banking, motor vehicle assembly, steel production, agriculture and research and development
- Schooling in the United States is provided through private, public, and home schools. In 2014 the United States education system was ranked as the 14th best in the world spending more per student on education than any other country. Ohio ranks 30th out of the 50 states in the quality of education.
- 12.91% of the population is between the ages of 15 and 24 years, with 38.92% of the population being between the ages of 25 and 54. The United States has a more mature demographic with the average age being 38 years old
Overview of the Labour Law
- The United States Labour Law sets the rights and duties for employees, labour unions and employers in the United States. The basic goals of the labour law are to ensure there is no inequality of bargaining power between employees and employers. The laws further assist in eliminating discrimination and promoting equality at work
- Employees in the United States have the right to join a trade union and the right to join a trade union without facing discriminatory labour practices. Contracts of employment can always improve the statutory minimum rights employees are entitled to but cannot diminish them
- Ohio is an “employment-at-will” state which means that either the employee or employer can terminate the employment agreement at any time unless there is a specific law preventing this form occurring
Fun Country Facts
- 20% of the state of Ohio lives in rural areas on farms
- Ohio is home to about 50-100 bears, according to the Ohio Department of Natural Resources
- Ohio is the birthplace of football
Why Use Playroll Services For United States of America – Ohio?
- Employing in the United States requires companies to have their own legal entity in the country as well as managing payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in the United States
- With Payroll’s Employer of Record services, your team will be employed by our established legal entities in each country
- We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing a thriving team
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Mandatory Contributions
State Unemployment Insurance (SUI)
Calculated on a maximum monthly salary of USD 9,000.00
Experienced Employers – Lowest Normal Rate
0.30%
Experienced Employers – Highest Normal Rate
9.70%
New Employer Normal Rate
2.70%
New Employer Construction Industry Normal Rate
5.50%
Experienced Employers- Mutualised Rate
0.50%
Federal Insurance Contributions Act (FICA)
OASDI
Calculated on gross annual remuneration up to a maximum of USD 147,000 per year
6.20%
Medicare
Calculated on gross monthly remuneration
1.45%
0.64%
Federal Unemployment Tax (FUTA)
Calculated on gross annual remuneration up to a maximum of USD 7,000 per year
6.00%
Optional Contributions
United Healthcare HSA HSA7000/100% (Choice Plus) (CMNN/E83L)
Contributions are dependent on the employee’s age
United Healthcare Choice Direct 30/2000/100% (Choice) (CMOK/K29Y)
Contributions are dependent on the employee’s age
Dental Insurance
Employer/employee contributions are at the employer’s discretion
USD 24.51
Vision Insurance
Employer/employee contributions are at the employer’s discretion
USD 6.27
Pension Fund – 401(k)
At the employer’s discretion
Total contributions to a 401(k) by both employer and employee cannot be more than USD58,000 (USD64,500 for employees older than 50)
The employer will usually match the employee’s contribution
Calculated on gross monthly remuneration
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Federal Insurance Contributions Act (FICA)
OASDI
Calculated on gross annual remuneration up to a maximum of USD 147,000 per year
6.20%
Medicare
Calculated on gross monthly remuneration
1.45%
Ohio State Income Tax
Income bracket per annum
0.00 – 25,000.00
0.00%
25,001.00 – 44,250.00
USD 346.16 + 2.765% of excess over USD 25,000.00
44,251.00 – 88,450.00
USD 878.42 + 3.226% of excess over USD 44,250.00
88,451.00 – 110,650.00
USD2,304.31 + 3.688% of excess over 88,450
110,651.00 or more
USD3,123.05 + 3.990% of excess over USD 110,650.00
Federal Income Tax
Single Taxpayers or Married Taxpayers Filing Separately
Income bracket per annum
0.00 – 10,275.00
10.00%
10,275.00 – 41,775.00
12.00%
41,775.00 – 89,075.00
22.00%
89,075.00 – 170,050.00
24.00%
170,050.00 – 215,950.00
32.00%
215,950.00 – 539,900.00
35.00%
539,900.00 and above
39.00%
Married Taxpayers Filing Jointly
Income bracket per annum
0.00 – 20,550.00
10.00%
20,550.00 – 83,550.00
12.00%
83,550.00 – 178,150.00
22.00%
178,150.00 – 340,100.00
24.00%
340,100.00 – 431,900.00
32.00%
431,900.00 – 647,850.00
35.00%
647,850 and more
37.00%
Head of Household Taxpayers
Income bracket per annum
0.00 – 14,650.00
10.00%
14,650.00 – 55,900.00
12.00%
55,900.00 – 89,050.00
22.00%
170,050.00 – 215,950.00
24.00%
170,050.00 – 215,950.00
32.00%
215,950.00 – 539,900.00
35.00%
539,900.00 and more
37.00%
Optional Contributions
Health Insurance
United Healthcare HSA HSA7000/100% (Choice Plus) (CMNN/E83L)
Contributions are dependent on the employee’s age
United Healthcare Choice Direct 30/2000/100% (Choice) (CMOK/K29Y)
Contributions are dependent on the employee’s age
Dental Insurance
USD 24.51
Employer/employee contributions are at the employer’s discretion
Vision Insurance
USD 6.27
Employer/employee contributions are at the employer’s discretion
Pension Fund – 401(k)
At the employer’s discretion
Total contributions to a 401(k) by both employer and employee cannot be more than USD58,000 (USD64,500 for employees older than 50)
The employer will usually match the employee’s contribution
Calculated on gross monthly remuneration
Employment Terms
General
Minimum Wage
- USD 9.30 for companies with gross annual receipts of more than USD 342,000.00 per year
- USD 7.25 for companies with gross annual receipts of less than USD 342,000.00 per year
Working Hours
- Maximum of 40 per week
- Ohio employers are not required to provide workers breaks related to meals or rest
- Typical working hours are 09h00 to 17h00 Monday to Friday
Overtime
- 1.5 times the established wage rate for any hours over 40 worked in a week
Notice Period
- There is no statutory notice period
Severance Pay
- The is no statutory obligation to provide severance pay
Probation Period
- Typical probation periods are between 6 months to 1 year
Bonus
- There is no statutory bonus
Public Holidays
Public holidays 2022
- January 1st – New Year’s Day
- January 17th – Martin Luther King Jr. Birthday
- February 21st – President’s Day
- May 30th – Memorial Day
- July 4th – Independence Day
- September 5th – Labour Day
- October 10th – Columbus Day
- November 11th – Veterans Day
- November 24th – Thanksgiving Day
- December 1st – Rosa Parks Day
- December 25th – Christmas Day
- December 26th – Christmas Holiday
Leave
Paid Leave / Vacation Days
- There is no statutory obligation to provide paid time off
Family and Medical Leave
- Unpaid leave
- 12 weeks