Federal and State Tax Accounts
Federal Tax Accounts:
- The EIN, or FEIN, is a unique nine digit number assigned by the IRS to identify your business. For more information, please read, “What Is an FEIN?”
- If you don’t already have an EIN, (aka FEIN), you can easily apply for an EIN with the IRS online. There is no cost to apply for an EIN.
- To read more about applying for an EIN, read, “How to Apply for an EIN”
State of Ohio Tax Accounts:
- Ohio new employers can easily register their business online using Ohio Business Gateway.
- You will be able to use this system to pay your state income taxes (SIT), as well as local income taxes.
- New employers in Ohio can register online using the Employer Resource Information Center (ERIC) for a state unemployment insurance (SUI) account.
- Employers in Ohio will receive a new State Unemployment Tax Assessment (SUTA) rate every year.
- The Ohio new employer SUTA rate is 2.7% for 2019 and 2018 for all non-construction industries. New construction employers use 5.9% for 2019 and 6.0% for 2018.
- For more information please visit the ODJFS.
- Ohio has many local and school taxes that business owners must register for. The Ohio Department of Taxation has compiled a list of municipal income tax resources.
- Ohio has locations that fall under a Joint Economic Development District (JEDD). Depending on your business’s location, you might need to pay JEDD tax. Please contact your local government to see if your business is located in a JEDD. If so, you will need to select the JEDD your business is under in Patriot Software. For more information on JEDD’s please read our article, What Is a Joint Economic Development District?
Setting Up Your New Employee:
- Fill out the required Form I-9 for employee verification for working in the USA.
- This is a two part form. The first section is filled out by the employee, and the second part is to be filled out by the employer.
- You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, please read “What Should Be in an Employee File?”
- Employees need to fill out the Form W-4, Employee’s Withholding Allowance Certificate for federal income taxes (FIT).
- For more information, read our help article, “What Is Federal Income Tax?”
- If your employees need assistance in determining their W-4 allowances, please refer them to our help article, “What Employers Need to Know About Employee Personal Allowances”
- Form IT-4 is the Employee Withholding Exemption Certificate for the State of Ohio.
- Ohio minimum wage is $8.55 per hour for 2019 and $8.30 per hour for 2018.
- By law you are required to post the Ohio minimum wage poster for your employees to read.
Once you have all the necessary information, you will be able to set up your payroll for your business.
You will want to keep all payroll records for at least three years. For more information please read our help article, “What Employers Should Know About Employee Payroll Records”
Let us know if you have any questions. We are here to help!
This is not an all-inclusive list and employers should contact their federal, state, and local government for a full list of compliances.