Employers electing to use the tip credit provision must be able to show that tipped employees receive at least the minimum wage when direct or cash wages and the tip credit amount are combined.
What do I need to know about state withholding tax?
Income earned by Ohio residents is subject to withholding
Ohio has reciprocity agreements with Indiana, Kentucky, Michigan, Pennsylvania, and West Virginia. (Under this agreement, the income earned in these states for Wages and Salaries is taxable to Ohio for Ohio residents and should be included on the Ohio return).
An employer is not required to withhold and remit to a municipality if an employee will be working in the municipality for 20 days or less. Once the 20 days have passed then the employer is required to withhold and remit to that municipality for days 21 and beyond, unless the employee asks to retroactively withhold and remit for days 1-20
New employers are required to register for a withholding account. Clickhere to register online.
What forms do employees need to set up state withholding?
IT 4 – Ohio Employee’s Withholding Exemption Certificate
What do I need to know about unemployment tax?
2023 Taxable Wage Base – 9,000
2023 New Employer UI Rate – 2.7%
With few exceptions, new employers are required to register for an unemployment tax account. Click here to register.
