Unemployment Insurance Tax (FUTA/SUTA); Workers' Compensation Payroll Tax: Ohio

Federal law and guidance on this subject should be reviewed together with this section.

Author: Vicki M. Lambert, The Payroll Advisor

Summary

• Ohio uses the common law test to determine whether a worker is covered or exempt from unemployment insurance coverage. See Common Law Test.
• Wages are defined for state unemployment insurance (SUI) purposes as all compensation including salaries, commissions, bonuses, and the cash value of any noncash compensation. See SUI Taxable Wages.
• An Ohio employer's experience rate is based on taxable wages reported, contributions paid (including voluntary payments) and benefits charged. See Contribution Rates and Experience Rating.
• Ohio employers are permitted to make voluntary contributions to lower their unemployment insurance tax rates. In addition, two or more contributing employers may establish a common rate group. See Voluntary Contributions; Joint or Combined Accounts.
• Employers in Ohio are required to file quarterly unemployment tax returns online. Penalties are imposed for noncompliance. See Quarterly Reporting Requirements.
• An employer's account will not be relieved of charges for overpayments under certain circumstances. See Benefit Overpayments.
• Employers are required to file Form BLS 3020, Multiple Worksite Report. See Multiple Worksite Reporting.
• Employers must maintain accurate and permanent payroll records on each employee for SUI purposes for at least five years. See Recordkeeping Requirements.
• Ohio employers must pay a workers' compensation payroll tax in addition to the unemployment insurance tax, if coverage requirements are met. See Workers' Compensation Payroll Tax.