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REMOTE EMPLOYEES

Hiring a remote employee in Ohio

Your company is in another state and one employee lives and works from home in Ohio. Which state's taxes apply, unemployment, paid leave and Ohio's employer rules, each with its official source.

Facts from the official sources listed at the end of this page; the oldest was read from an archived copy dated October 15, 2025. For employers. General information, not legal or tax advice: confirm a rule with the agency before you rely on it.

Ohio at a glance

Income tax
Ohio withholding
Reciprocity
With Indiana, Kentucky, Michigan, Pennsylvania and West Virginia
Unemployment
$9,000 wage base, 2.85% new employer
Paid leave
None
New hire report
Within 20 days

Which state's taxes apply

Work state
Ohio taxes wages for work done in Ohio. Withhold Ohio income tax on the employee's wages.Source: Ohio Department of Taxation, Form IT 4, Employee's Withholding Exemption Certificate (Rev. 01/24, PDF) (opens in a new tab), checked October 5, 2026
Withholding form
Form IT 4Source: Ohio Department of Taxation, Form IT 4, Employee's Withholding Exemption Certificate (Rev. 01/24, PDF) (opens in a new tab), checked October 5, 2026
Reciprocity
If your office is in Indiana: Ohio residents working there are withheld for Ohio, with WH-47. If your office is in Kentucky: Ohio residents working there are withheld for Ohio, with Form K-4 (box 4) or 42A809. If your office is in Michigan: Ohio residents working there are withheld for Ohio, with MI-W4 (line 8b). If your office is in Pennsylvania: Ohio residents working there are withheld for Ohio, with REV-419, Employee's Nonwithholding Application Certificate. If your office is in West Virginia: Ohio residents working there are withheld for Ohio, with WV/IT-104NR.Source: Indiana DOR, Income Tax Information Bulletin #28 (December 2024, PDF) (opens in a new tab), checked October 5, 2026; Kentucky Department of Revenue, Form K-4 Kentucky's Withholding Certificate 2026, 42A804(12-2025) (PDF) (opens in a new tab), checked October 5, 2026; Michigan Treasury, Form 446, 2026 Michigan Income Tax Withholding Guide (Rev. 02-26, PDF) (opens in a new tab), checked October 5, 2026; PA Department of Revenue, PA Personal Income Tax Guide: Gross Compensation (opens in a new tab), checked October 5, 2026; West Virginia Tax Division, WV IT-104 Employee's Withholding Exemption Certificate and WV/IT-104NR Certificate of Nonresidence (Rev. 03/2023, PDF) (opens in a new tab), checked October 5, 2026
Convenience rules
If your company is in Delaware or New York, the employee is assigned to an office there and works there on some days, that state taxes the days worked from home in Ohio for the employee's convenience.Source: Delaware Division of Revenue, 2025 Form PIT-NON Instructions, Non-Resident Individual Income Tax Return (PDF) (opens in a new tab), checked October 6, 2026; NYS DTF, TSB-M-06(5)I, New York Tax Treatment of Nonresidents and Part-Year Residents: Application of the Convenience of the Employer Test to Telecommuters and Others (May 15, 2006, PDF) (opens in a new tab), checked October 6, 2026
Office days in your company's state
That state's day limit, if it has one, decides whether it withholds on those days: see its page, or the helper below.
An employee from another state working in Ohio
Ohio sets no day count before a nonresident's wages for work there are withheld.Source: Ohio Revised Code §5747.06, Withholding tax (effective October 17, 2019) (opens in a new tab), read from an archived copy dated April 21, 2026 (opens in a new tab)

Where to withhold: two states

Pick your company's state, the state where the employee lives and works from home, and the days a year the employee works at your office. The answer reads each state's rules from the data on these pages.

Your company is in
Employee lives and works from home in
Days a year at your office
Assigned to an employer office in New YorkMatters only in the states with a convenience rule (Connecticut, Delaware, New Jersey, New York and Pennsylvania), and only with office days there.

Income tax withholding

  • Ohio: all wages.

No New York withholding: the employee does no work in New York.

Unemployment

Ohio: the employee works from home there, so the work is localized in Ohio.

Simplified: resident credits, dollar tests, local taxes and a move during the year are not worked out here. Each state's rule and its source are on its page.

Unemployment

The employee works from home in Ohio, so the work is localized in Ohio: pay Ohio unemployment tax, not your company state's.

Agency
Ohio Department of Job and Family Services (ODJFS), Office of Unemployment Insurance OperationsSource: ODJFS, Unemployment: For Employers (opens in a new tab), checked October 5, 2026
Wage base
$9,000 Fixed by lawSource: ODJFS, 2026 Rates (contribution rate details, PDF) (opens in a new tab), checked October 5, 2026
New employer rate
2.85% 2.85% (2.7% plus a 0.15% technology and customer service fee); construction employers 5.85% (5.7% plus 0.15%) Surcharges included Construction 5.85%Source: ODJFS, 2026 Rates (contribution rate details, PDF) (opens in a new tab), checked October 5, 2026

Open the account: Ohio payroll tax registration

Ohio has no paid leave program funded through payroll.

Ohio employer rules

Employment law applies where the employee works, so these follow the employee into Ohio.

Final pay
Fired: No separate deadline: by the regular semimonthly schedule (wages for the 1st to 15th by the 1st of the next month, for the 16th to month-end by the 15th of the next month) Quit: Same as firedSource: Ohio Revised Code §4113.15, Semimonthly payment of wages (effective March 20, 2019) (opens in a new tab), read from an archived copy dated October 15, 2025 (opens in a new tab)
Pay frequency
At least twice a month: wages for the first half of a month by the 1st of the next month, for the second half by the 15th of the next month; daily or weekly pay allowedSource: Ohio Revised Code §4113.15, Semimonthly payment of wages (effective March 20, 2019) (opens in a new tab), read from an archived copy dated October 15, 2025 (opens in a new tab)
Pay notice
No pay-rate notice at hire. Each payday, employees get a written or electronic pay statement: gross and net wages, each addition and deduction, pay date and period, and for hourly staff the hours, hourly rate and hours over 40 in a workweek (R.C. 4113.14). An employee's own pay records (pay rate, hours, amounts paid) must be given free on request within 30 business days (R.C. 4111.14(G); Ohio Const. Art. II, Sec. 34a).Source: Ohio Revised Code 4113.14, Pay stubs (effective April 9, 2025) (opens in a new tab), checked October 5, 2026
New hire reporting
Within 20 days of the start date.Source: Ohio New Hire Reporting Center, New Hire Requirements & FAQs (opens in a new tab), checked October 5, 2026
E-Verify
From March 20, 2026, every nonresidential construction contractor, subcontractor and labor broker must use E-Verify for each employee hired to work on a nonresidential construction project (buildings, highways, bridges, utilities), public or private, and keep the record for three years after hire or one year after termination, whichever is later. No mandate for other private employers.Source: Ohio Revised Code 4151.02, Employee verification (HB 246, 136th General Assembly) (opens in a new tab), checked October 5, 2026
Sick leave
No state sick leave law.Source: Ohio Revised Code 4113.85 (opens in a new tab), checked October 5, 2026

When the employee moves

Re-check the work state and the registrations before the next payroll: a move changes which state's withholding, unemployment, paid leave and employer rules apply.

Registering your business in Ohio, and whether one remote employee creates tax nexus for your company, are separate questions this page does not cover.

More on Ohio

WORKLIO HCM

Payroll for employees who work from home in another state

Worklio HCM withholds by home and work state, reciprocity included, and handles city and county taxes. We help open state withholding and unemployment accounts when you hire somewhere new, and our registration service can register your employer tax accounts for you. Taxes are calculated, deposited and filed in every state and locality, and when an agency notice arrives, you upload it and our tax team resolves it.

Remote employees in other states

Sources

The agency page or document behind each fact, as checked.

General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes and for each state's rules.

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