Ohio New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- The EIN (Employer Identification Number), 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, “Your Step-by-step Guide on How to Apply for EIN.”
- Although it is not required, we suggest you register for the EFTPS (Electronic Federal Tax Payment System).
- EFTPS is an easy way to pay your federal taxes online or view any tax filings made on your behalf by Patriot. To find out more about EFTPS, please read our article, “What Is EFTPS?”
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 2023 for all non-construction industries. New construction employers use 5.6% for 2023.
- 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.
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 “Form I-9 In a Nutshell.”
- Employees need to fill out the Form W-4, Employee’s Withholding Certificate for federal income taxes (FIT).
- For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know.”
- In addition to the W-4 for Federal income taxes, employees should fill out Form IT-4, the Employee Withholding Exemption Certificate for the State of Ohio.
- Ohio employers need to report new hires online within 20 days of hire or rehire to the Ohio New Hire Reporting Center.
- For more information please read our article, “What Is New Hire Reporting?”
- Ohio minimum wage is $10.10 per hour for 2023.
- 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.
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