Ohio Dept. of Taxation issues new Employer Withholding Rates

New rates effective July 1

The Ohio Department of Taxation has issued new employer withholding tables for payrolls that begin on or after July 1, 2024.

The new tables include the income tax rate reductions that went into effect when Ohio House Bill 33 was signed into law on July 4, 2023.

With rare exceptions, employers that do business in Ohio are responsible for withholding Ohio individual income tax from their employee's pay. Ohio employers also have the responsibility to withhold school district income tax from the pay of employees who reside in a school district that has enacted such a tax.

To help simplify the preparation of payroll withholding tax for employers, Zinner & Co. has provided links to the Ohio Dept. of Taxation employer withholding tax tables, which lay out the amount an employer needs to withhold from employee paychecks.

• Tax Withholding Tables - Percentage Method
• Tax Withholding Tables - Optional Computer Method
• Daily Withholding Tables
• Weekly Withholding
• Biweekly Withholding
• Semi-monthly Withholding
• Monthly Withholding Tables

In addition to the withholding tables, it is important that employers correctly withhold the proper school district income tax from their employees. Information, including rates and guidelines, is contained in the links below:

• Ohio employer and school district withholding tax filing guidelines (2024)
• School district rates (2024)

Overall, H.B. 33 provided $3.1 billion in tax relief for Ohioans. Among the tax cuts included in the legislation were:

• Ohioans making up to $26,050 will pay zero state income taxes.
• Those with income above $26,050 will pay 2.75 percent.
• Those making more than $100,000 will pay 3.5 percent.
• The bill adds an extended sales tax holiday in August.
• Almost 90 percent of Ohio’s businesses will no longer pay the Commercial Activity Tax.
• Businesses were exempt from paying taxes on the first $3 million of gross receipts in the first year of the budget.
• Businesses will not have to pay taxes on the first $6 million of gross receipts in the following year.

If you have any questions regarding the Ohio Dept. of Taxation employer withholding rate tables, please contact your Zinner & Co. Tax Team adviser.