Payroll Cost per Employee in Ohio
2026 estimates — total employer cost including taxes and benefits
Min wage in Ohio: $10.45/hr (2025; annually indexed to CPI for employers with $385,000+ gross receipts) | SUTA: 0.3–12.9% on first $9,000
Calculate Total Payroll Cost in Ohio
Payroll Tax Breakdown — Ohio 2026
| Tax / Cost | Rate / Rule | Annual Amount |
|---|---|---|
| Base salary | Per agreement | $53,900 |
| Social Security (employer) | 6.2% on first $168,600 | $3,342 |
| Medicare (employer) | 1.45% of all wages | $782 |
| FUTA (federal unemployment) | 0.6% on first $7,000 | $42 |
| Ohio SUTA | 0.3–12.9% on first $9,000 | $375 |
| Benefits (health, 401k, etc) | ~18% of salary (typical) | $9,702 |
| Total Employer Cost | $68,520 | |
Based on $53,900 median salary in Ohio. SUTA rate shown is approximate average — actual rate depends on claims history. Additional: Municipal income taxes in most Ohio cities — Columbus 2.5%, Cleveland 2%, Cincinnati 1.8%; employers must file separately with each city.
Payroll Requirements in Ohio
1. Ohio Payroll Tax & Compliance Overview
Ohio payroll has a distinctive complexity: state income tax withholding (2.765–3.99%) plus mandatory municipal income taxes in most Ohio cities. Columbus charges 2.5%, Cleveland 2%, Cincinnati 1.8% — employers must register with and file separately in each city where employees work. Ohio is also a monopoly workers' comp state — all workers' comp coverage must go through the Ohio BWC (Bureau of Workers' Compensation); private insurance is not permitted.
2. Top Tips for Ohio Employers
Ohio employers must register with each municipality where employees work and remit local municipal income tax separately — either through RITA (Regional Income Tax Agency), CCA (Central Collection Agency), or directly with the city. Standard payroll software handles Ohio municipal taxes but requires correct setup for each city. BWC workers' comp: Ohio assigns you a classification code with corresponding rate — appeal rate changes if your claims history doesn't support the assigned rate.
3. Key Ohio Payroll Facts
- Minimum wage: $10.45/hr (2025; annually indexed to CPI for employers with $385,000+ gross receipts)
- State income tax: 2.765–3.99%
- State unemployment (SUTA): 0.3–12.9% on first $9,000
- Additional: Municipal income taxes in most Ohio cities — Columbus 2.5%, Cleveland 2%, Cincinnati 1.8%; employers must file separately with each city
Run Ohio Payroll Automatically
Automated payroll software handles Ohio tax calculations, filings, and W-2s for $40–$150/month.
Payroll Software Cost Comparison — Ohio 2026
At $5,710/month total employer cost, automating payroll for $53,900 median salary employees costs 27% above base salary. Software adds just 0.1–0.3% but eliminates costly compliance errors.
| Software | Base Price | Per Employee |
|---|---|---|
| Gusto Top pick | $46/mo | +$6/emp/mo |
| QuickBooks Payroll Core | $45/mo | +$6/emp/mo |
| ADP Run Essentials | ~$65/mo | +$4/emp/mo |
| Rippling | $35/mo | +$8/emp/mo |
Prices as of 2026. All four platforms handle Ohio state tax filings automatically. 10-employee team example: Gusto = $106/mo, QuickBooks = $105/mo, ADP ≈ $105/mo, Rippling = $115/mo.
Frequently Asked Questions
Ohio Payroll Summary
- →Avg salary: $53,900/yr
- →Total cost: $68,520/yr
- →Overhead rate: ~27% above salary
- →Min wage: $10.45/hr (2025; annually indexed to CPI for employers with $385,000+ gross receipts)
- →State income tax: 2.765–3.99%