Summary

About taxes in Ohio

Varies based on state or federal guidelines; research specific requirements. Subject to state-specific labor regulations and federal guidelines. Varies by city/county within the state. Employers may have requirements for workers' compensation and unemployment insurance. Federal income tax and FICA; state withholding varies based on state income tax laws.

Frequently Asked Questions

What is the minimum wage in my state?

Minimum wage varies by state. Some states follow the federal minimum wage of $7.25 per hour, while others have set their own, often higher rates. Refer to your state’s Department of Labor or official government website for the latest rates.

How is my paycheck calculated?

Your paycheck is calculated based on your hourly wage or salary, minus deductions. Typical deductions include federal income tax, Social Security, Medicare, and any applicable state or local taxes. Employers may also deduct for benefits like health insurance, retirement contributions, or garnishments.

What taxes are withheld from my paycheck?

Standard payroll withholdings include federal income tax, Social Security, and Medicare. Depending on your state, additional state income tax and local taxes may also be withheld. Your withholdings are influenced by the information on your W-4 form.

What are pre-tax and post-tax deductions?

Pre-tax deductions are taken from your gross pay before taxes are applied and can lower your taxable income (e.g., health insurance, 401(k) contributions). Post-tax deductions are taken from your net pay and do not affect your taxable income.

How often should employers pay employees?

Pay frequency varies by state law. Common pay schedules are weekly, bi-weekly, semi-monthly, and monthly. Employers must comply with state regulations on pay frequency to ensure timely and consistent pay periods.

What should I do if there’s an error in my paycheck?

If you notice an error, promptly notify your employer or payroll department. Provide details about the discrepancy, and request an explanation or correction. Employers are typically required to correct paycheck errors by the next pay period.

Do all states have state income tax?

No, some states do not have a state income tax, including Texas, Florida, and Nevada. However, even in these states, other taxes like sales tax, property tax, or local taxes may apply.

What is workers’ compensation, and am I eligible?

Workers’ compensation is insurance that provides wage replacement and medical benefits to employees injured on the job. Eligibility and requirements vary by state, but in most cases, employers are required to carry workers' compensation insurance for their employees.

How do I adjust my tax withholdings?

To adjust your withholdings, submit a new W-4 form to your employer. Changes will affect the amount of federal income tax withheld from your paycheck, which may increase or decrease your refund or tax owed at year-end.

What is the difference between a W-2 and a 1099 form?

A W-2 form is issued to employees, showing their wages and tax withholdings. A 1099 form is issued to independent contractors or freelancers, showing income paid without tax withholdings. Tax responsibilities differ between employees (W-2) and contractors (1099).

Why is my take-home pay less than my salary or hourly wage?

Take-home pay is your gross pay minus taxes, Social Security, Medicare, and any other deductions like health insurance or retirement contributions. This reduction covers tax obligations and benefit programs.

What is unemployment insurance, and who pays for it?

Unemployment insurance provides temporary financial assistance to workers who lose their job through no fault of their own. Employers pay unemployment insurance taxes, which fund state unemployment benefits. Employees do not contribute directly to this fund.

Can my employer change my pay rate?

Generally, employers can change your pay rate as long as they comply with minimum wage laws and give you notice before the change takes effect. Employment is often 'at-will,' allowing employers to make adjustments with proper communication.