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Payroll Outsourcing in Ohio: Requirements and Options
Payroll outsourcing in Ohio means a provider running payroll under Ohio rules: state withholding (progressive, up to about 3.5%), new hires reported within 20 days, and a discharged employee's final pay by the next regular payday or within 15 days, whichever is earlier. BEG manages it for $45 per employee per month inside the payroll software you already use, all-inclusive, live in 3 to 5 business days.
What a Ohio payroll actually has to get right
General information for 2026, not legal advice. Deadlines and rates change; confirm with the Ohio agency before acting.
| State income tax on wages | Progressive, up to about 3.5% |
|---|---|
| Pay-frequency law | At least semi-monthly |
| New hire reporting deadline | 20 days (federal default) |
| Final paycheck, discharge | By the next regular payday or within 15 days, whichever is earlier. [Ohio Rev. Code 4113.15] |
| Final paycheck, resignation | By the next regular payday or within 15 days, whichever is earlier. |
| Accrued PTO at separation | This state treats accrued, unused PTO as earned wages, so it generally must be paid out at separation. |
| 2026 minimum wage | $11.00 (employers grossing $405,000+; $7.25 below that). Adjusted annually by formula [DOL state minimum wage table] |
| Overtime rule | Weekly over 40 |
| Paid sick and family leave | No state paid sick or family leave mandate |
| Continuation coverage under 20 employees | Ohio State Continuation of Health Insurance, up to 12 months. Fully-insured group health policies; primarily serves employees of employers not subject to federal COBRA (fewer than 20 employees), though the statute is framed around individual eligibility rather than a strict employer-size threshold [Ohio Rev. Code section 3923.38] |
Registrations and filings a provider handles in Ohio
Ohio taxes wages (progressive, up to about 3.5%), so a Ohio employer carries a state withholding account and a state deposit schedule on top of the federal one, plus a separate Ohio unemployment insurance account with quarterly wage reports, and new hire reports due within 20 days (federal default).
Where Ohio diverges from the federal baseline
Pay frequency: at least semi-monthly. The run calendar is set to that rule at implementation so a schedule change never becomes a wage claim.
Overtime follows weekly over 40, so the federal regular-rate rules govern: bonuses, shift differentials and commissions all fold into the rate before the premium is applied.
On discharge in Ohio the final check is due by the next regular payday or within 15 days, whichever is earlier, and on resignation by the next regular payday or within 15 days, whichever is earlier. Accrued PTO is treated as earned wages, so it is on the final check whatever the handbook says. Full detail on the Ohio final paycheck rules page.
Leave: no state paid sick or family leave mandate. Sick and vacation accrual in Ohio follow the employer's own policy, and payroll tracks exactly what that policy promises, no more. Remote employees working from a mandate state are the exception: their leave follows the state they work in, not Ohio.
What BEG managed payroll includes for Ohio employers
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum and no setup fee. Ohio withholding and unemployment registration, quarterly and annual state filings, new hire reporting within 20 days (federal default), final-pay runs on the Ohio deadline, and year-end W-2s are all inside that price. Live in 3 to 5 business days from signing.
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Frequently Asked Questions
Does Ohio have state income tax withholding?
Yes. Ohio taxes wages (progressive, up to about 3.5%), so every employer with Ohio employees registers a state withholding account, withholds from each check and remits on the state's deposit schedule alongside federal deposits.
When is a final paycheck due in Ohio?
On discharge: by the next regular payday or within 15 days, whichever is earlier. On resignation: by the next regular payday or within 15 days, whichever is earlier. This state treats accrued, unused PTO as earned wages, so it generally must be paid out at separation. Source: Ohio Rev. Code 4113.15.
How often must Ohio employers pay employees?
Ohio pay-frequency rule: at least semi-monthly. A payroll provider sets the run calendar to that rule at setup, so the schedule is never the thing that creates a wage claim.
How fast must new hires be reported in Ohio?
Ohio requires new hire reporting within 20 days (federal default). That matches the federal default, and the report goes to the Ohio new hire directory, not the IRS.
Does Ohio require paid sick leave or paid family leave?
No state paid sick or family leave mandate. With no statewide sick-leave mandate, Ohio accrual rules come from the employer's own policy, and payroll tracks whatever that policy promises.
What is the Ohio minimum wage in 2026?
$11.00 (employers grossing $405,000+; $7.25 below that). Adjusted annually by formula. Overtime in Ohio: weekly over 40.
What does managed payroll cost for a Ohio business?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum and no setup fee. Ohio withholding, unemployment filings, new hire reports and year-end W-2s are included, not add-ons.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries. BEG manages payroll at $45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: U.S. Department of Labor: Wage and Hour Division
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