Ohio New Employer Information

January 4, 2019

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Congratulations on your decision to become a new employer in Ohio! You will need a few things in place before you run your first payroll:

Federal and State Tax Accounts

Federal Tax Accounts:

 

Apply for an Employer Identification Numberview details
Enroll in EFTPS (Electronic Federal Tax Payment System)view details
  • Although it is not required, we suggest you register for the EFTPS.
  • The 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 the EFTPS, please read our article, “What Is EFTPS?”
State of Ohio Tax Accounts:

 

Register with Ohio Department of Taxationview details
  • 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.

 

Register with Ohio Office of Unemployment Compensation view details
  • New employers in Ohio can register online using the Employer Resource Information Center (ERIC) for a state unemployment insurance (SUI) account.

 

Get Your SUTA Rate view details
  • 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.

 

Register with Local Tax Agenciesview details
  • 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 Form I-9 view details
  • 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?”
Have Employee Fill Out Federal Form W-4 view details
Have Employee Fill Out State Form IT-4 view details
  • Form IT-4 is the Employee Withholding Exemption Certificate for the State of Ohio.
Report New Hireview details
Meet Minimum Wage Requirements view details
  • 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.

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