Ohio Payroll Tax Registration

If you are an employer in Ohio who has recently hired an employee, you will need to register for payroll taxes with the Ohio Department of Taxation. This registration is necessary in order to withhold and remit state income taxes, as well as other payroll taxes, on behalf of your employees.

How Ohio Payroll Registration Works

There are 3 payroll tax setup tasks you may need to complete in Ohio to get your new hire on payroll for the first time. You can follow the guide below to help you get registered directly with the Ohio agencies or use Mosey to do it.

Ohio Workers' Compensation Setup for LLC, LLP, Corporation

If you have employees in Ohio, you are required to purchase workers' compensation coverage from the Bureau of Workers' Compensation (BWC) or seek approval to self-insure. Private workers' compensation insurance is not allowed in Ohio. Workers' Compensation coverage begins when BWC receives a completed application (Form U-3) and the $120 non-refundable application fee.

1. Apply for Ohio Workers' Compensation Coverage

   Visit the Bureau of Workers' Compensation online application form to apply for Ohio Workers' Compensation coverage and pay the $120 application fee.

2. Create an Ohio|ID Account

   Create a OH|ID account if you don't have one already. OH|ID is used by multiple state agencies in Ohio.

3. Post Certificate of Coverage

   To let employees know you have you Workers' Compensation coverage, you must post a copy of your Certificate of Ohio Workers' Compensation in a highly visible location at each work site. You may also post this on an internet site available to all employees.

Ohio Withholding Tax Setup for LLC, LLP, Corporation

If you have employees in Ohio, you are required to register with the Ohio Department of Taxation for an Employer Withholding Tax account by filing an Application for Registration as an Ohio Withholding Agent (Form IT 1) within 15 days of the start date of your first Ohio employee. Your Employer Withholding Account is also used for Ohio's school district withholding tax.

1. Create an OH|ID Account

   Create a OH|ID account if you don't have one already. OH|ID is used by multiple state agencies in Ohio.

2. Register for Withholding Tax Online

   Log in to Ohio Business Gateway with your OH ID account to apply for a Withholding Tax account online. Immediately after registration you will receive a eight-digit Withholding Tax Account ID (it will look like 5x-xxxxxx).

3. Configure Payroll with Your Withholding Account ID

   Upon receipt, provide your Withholding Tax Account ID to your payroll provider.

Ohio Unemployment Insurance Setup for LLC, LLP, Corporation

Employers who have paid $1,500 or more in wages within a calendar quarter or employed one person for some part of a day in each of 20 different weeks within a calendar year must register with the Department of Job & Family Services for an Employer Account Number. The standard new employer Unemployment Insurance tax rate is 2.7%. Note: 501(c)(3) organizations must register if they employ four or more people in some portion of the day in each of 20 different weeks during a calendar year. During registration, 501(c)(3) tax-exempt organizations the choice to either pay unemployment contributions on taxable wages each quarter or elect to reimburse the Ohio Unemployment Fund for benefits paid to terminated employees.

1. Register for an Unemployment Insurance Account

   Create an account for The Source, the online portal for the Department of Job & Family Services, to register for your Unemployment Insurance account. Your 10-digit Employer Account Number (EAN) e.g., 1234567-89-0 is typically issued immediately after registration.

2. Configure Payroll with Unemployment Insurance Information

   Add your Employer Account Number and unemployment insurance contribution rate (or reimbursable status) to your payroll provider.

Ohio's Payroll Registration Agencies

• Ohio Bureau of Workers' Compensation (BWC)
• Ohio Department of Job and Family Services
• Ohio Department of Taxation