Employer of Record for Ohio

Guide to Hiring Employees in Ohio

Your guide to hiring employees in Ohio, covering employment and labor laws, payroll, benefits, onboarding and taxes. You can also manage and pay your contractors in Ohio through Playroll.

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Capital City

Columbus

Timezone

EST

(

GMT-5

)

Paid Leave

None

Income Tax

2.77% - 3.99%

Employer Tax

0.4% - 10.1%

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How to Hire Employees In Ohio

Hiring in Ohio for the first time can be challenging, especially with the state's complex employment laws. Whether you're hiring independent contractors, setting up a legal entity, partnering with a PEO, or using an Employer of Record (EOR), it's essential to understand the local employment landscape. Playroll's comprehensive guide is here to help, whether you're onboarding local talent or relocating team members.

Here are four primary ways companies can hire employees in Ohio:

  • Establishing a local entity: Creating a legal entity in Ohio allows for direct hiring, but it can be costly and time-consuming. However, it gives you full control over employment and reduces risk exposure.
  • Partnering with an Employer of Record (EOR): An EOR, like Playroll, takes on the legal responsibilities of employment, acting as the employer on your behalf. This option streamlines hiring, payroll, and compliance with Ohio’s labor laws, helping you hire in Ohio without navigating the complex legal landscape yourself.
  • Working with a Professional Employer Organization (PEO): A PEO, such as Playroll, co-employs your team, managing essential HR functions like payroll, benefits, and compliance. Partnering with a PEO ensures you meet Ohio’s labor regulations while offering competitive employee benefits.
  • Hiring independent contractors: Hiring independent contractors can be more cost-effective, but Ohio has strict contractor classification rules. Proper classification is essential to avoid penalties for misclassification when hiring in Ohio.

Complying with Ohio specific employment regulations and federal laws is critical to avoiding legal risks and costly fines. Our guide focuses on hiring in Ohio, employment compliance, and how Playroll’s services can support your business as you navigate the complexities of hiring in the state.

Good To Know

Ohio is a "right-to-work" state, meaning employees are not required to join a union or pay union dues as a condition of employment.

The state’s minimum wage for non-tipped employees is $10.10 per hour (2024), with annual adjustments based on inflation.

Manufacturing and healthcare are among Ohio's largest employment sectors, reflecting the state’s diverse and growing economy.

Key Things to Know About Hiring in Ohio

Do I Need an EIN or Payroll Tax Number To Employ in Ohio

Employers need an EIN for federal tax purposes and must register for state payroll taxes with the Ohio Department of Taxation.

Working Hours in Ohio

Ohio requires overtime pay for hours over 40/week but imposes no limits on adult working hours.

What Is Considered Full-Time Employment in Ohio?

Full-time is typically 35-40 hours/week, defined by the employer.

Probation Period in Ohio

No state-mandated probation period; it's up to the employer's policy.

Labour Laws in Ohio

Minimum Wage in Ohio

As of January 1, 2024, Ohio's minimum wage is $10.45 per hour for non-tipped employees and $5.25 per hour for tipped employees. This rate applies to businesses with annual gross receipts exceeding $385,000. For smaller businesses and employees under 16, the minimum wage aligns with the federal rate of $7.25 per hour.

Ohio Anti-Discrimination Laws

Ohio law prohibits employment discrimination based on race, religion, sex, military status, national origin, disability, age, or ancestry. Unlawful practices include discriminatory hiring, firing, promotion, and other employment-related decisions.

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Onboarding New Hires in Ohio

We can help you get your new employee started in Ohio fast, with a minimum onboarding time from just 1-2 working days. Note that the timeline is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Playroll platform.

For non-citizens of the US, a work eligibility assessment may be required, and can add three extra days to the onboarding time. If a follow-up is needed, there may be additional delays.

Please note that payroll cut-off dates can impact the actual first day of employment. Playroll’s payroll cut-off date is the 10th of the month, unless otherwise specified.

Payroll Taxes For Ohio

Ohio does not mandate a specific payroll frequency. Common payroll cycles include weekly, bi-weekly, or semi-monthly, as determined by employer policy. Employers must adhere to consistent pay schedules.

Looking to grow your team in Ohio?

Stay Compliant: Navigate Ohio’s complex labor laws with ease.

Affordable Solution: Reduce costs with a budget-friendly EOR option.

Top-Tier Benefits: Access competitive Ohio and federal employee benefits for a stronger team.

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Ohio Employment Taxes

Employer Tax Contributions

Employment Tax Type Tax Rate
Unemployment Insurance Ranges from 0.3% to 10.6%, based on the employer's experience rating.
Workers’ Compensation Varies by industry classification; for example, private employers experienced a 7% rate reduction effective July 1, 2024.
Social Security As per federal legislation
Medicare As per federal legislation

Employee Payroll Tax Contributions

Employee Payroll Tax Contribution Tax Rate
Unemployment Insurance Employees are not required to pay UI taxes.
Social Security As per federal legislation
Medicare As per federal legislation
Local Income Tax Varies by municipality; typically ranges from 1% to 3%.

Tax Due Dates in Ohio

  • Quarterly Filers: Taxes due April 30, July 31, October 31, and January 31.
  • Monthly Filers: Taxes due on the 15th of the following month.
  • Partial-Weekly Filers: Taxes due within three banking days after the payroll period ends.
  • Annual Filings: Form IT 941 due by January 31.

Pension in Ohio

Public employees contribute to state systems with retirement eligibility based on age and service. Private employers are not required to offer pension plans but must comply with ERISA if they do.

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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Ohio tailored to your needs.

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Paid and Unpaid Leave Policies in Ohio

Is Vacation Leave Mandatory in Ohio?

In Ohio, employers are not legally required to provide paid or unpaid vacation leave to their employees. The decision to offer vacation benefits is at the discretion of the employer. If an employer chooses to provide vacation leave, they must adhere to the terms outlined in their established policy or employment contract. This includes any provisions regarding the accrual, use, and payout of vacation time?

What Are Mandatory Leave Entitlements in Ohio?

Type of Leave Time Period Mandatory Pay Status Eligibility Criteria
Paid Time Off (PTO) Determined by employer policy No Employer discretion Based on employer policy.
Maternity Leave Up to 12 weeks Yes (FMLA) Unpaid In accordance with federal FMLA eligibility
Paternity Leave Up to 12 weeks Yes (FMLA) Unpaid In accordance with federal FMLA eligibility
Sick Leave Determined by employer policy No Employer discretion Defined by employer policy
Military leave Duration of military service and training Yes Unpaid Member of organised militia or National Guard
Jury Leave Length of jury service Yes Unpaid Must notify the employer in advance
Parental Leave Up to 12 weeks Yes (FMLA) Unpaid In accordance with federal FMLA eligibility
Voting Leave Reasonable time to vote Yes Unpaid Must notify the employer in advance
Bereavement Leave Determined by employer policy No Employer discretion Employer defined policy

Paid Time Off in Ohio

Ohio does not mandate that employers provide paid time off. The provision of PTO, including vacation days, is at the discretion of the employer and should be outlined in company policies or employment contracts.

Maternity Leave In Ohio

In Ohio, there is no state-mandated maternity leave. Employees rely on the federal Family and Medical Leave Act (FMLA), which provides unpaid, job-protected leave for eligible employees to care for a newborn, adopted child, or newly placed foster child. If FMLA doesn’t apply, any maternity leave would depend on the employer’s policies. Some companies may offer paid maternity leave voluntarily as a benefit.

Paternity Leave In Ohio

In Ohio, there is no state-mandated paternity leave. Eligible employees may qualify for unpaid, job-protected leave under the federal Family and Medical Leave Act (FMLA) to care for a newborn, adopted child, or newly placed foster child. If FMLA doesn’t apply, any paternity leave would depend on the employer’s specific policies, as Ohio law does not provide additional leave requirements for paternity.

Sick Leave In Ohio

Ohio does not require employers to provide paid or unpaid sick leave. Employers may offer sick leave at their discretion, and any such policies should be clearly stated in employment agreements or company handbooks.

Military Leave in Ohio

Employees who are members of the Ohio organized militia or National Guard are entitled to unpaid leave for military service or training. Upon return, they have the right to reinstatement to their previous position or a similar one, in accordance with the Uniformed Services Employment and Reemployment Rights Act (USERRA).

Jury Duty in Ohio

Employers must allow employees to take unpaid leave for jury duty. They cannot discharge, threaten, or penalize employees for serving as jurors, provided the employee gives reasonable notice prior to the commencement of jury service.

Voting Leave

Employers are required to provide employees with a reasonable amount of time off to vote. Employers cannot discharge or threaten to discharge an employee for taking time off to vote.

Bereavement Leave

Ohio law does not require employers to provide bereavement leave. Any such leave is at the discretion of the employer and should be detailed in company policies.

It’s Easy To Manage Benefits For Employees In Ohio With Playroll

Benefit Requirements for Employers in Ohio

Employers must comply with federal and state regulations for mandatory and optional benefits.

Are Employers Required To Provide Health Insurance in Ohio?

Health insurance is not mandated by state law. Under the ACA, employers with 50 or more full-time equivalent employees must offer health insurance meeting essential coverage standards.

Do Part-Time Employees Get Benefits in Ohio?

Part-time employees are not legally entitled to benefits. Eligibility depends on the employer's policies.

Are Employers Required To Offer 401k in Ohio?

There is no legal requirement to offer retirement plans like 401(k)s. Employers who provide them must comply with the Employee Retirement Income Security Act.

Employment Termination Protocols in Ohio

Termination Process in Ohio

Employment is at-will, meaning employers can terminate employment without cause unless it violates anti-discrimination laws or contractual agreements. Dismissal cannot occur for discriminatory reasons, retaliation, or whistleblowing.

Notice Period in Ohio

There is no statutory requirement for a notice period before termination, though contracts or company policies may specify one.

Severance in Ohio 

Severance pay is not legally required. Employers may provide it based on company policy or contractual agreements.

Hiring Employees in Ohio with an employer of record

Discuss how an EOR handles onboarding, including setting up compliant employment contracts, registering for taxes, and managing benefits like Ohio's superannuation system (if applicable).

The employer of record is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with Ohio's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with Ohio's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Ohio's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by [State]'s labor laws, such as health insurance, pension contributions, and statutory leave.

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Employer of Record for Ohio

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FAQS

FAQs About Hiring In Ohio

What is the minimum wage in Ohio?

As of January 1, 2024, Ohio’s minimum wage rates are:

  • $10.10 per hour for large employers (annual gross receipts of $372,000 or more).
  • $7.25 per hour for small employers and minors.
  • Applies across all sectors.

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