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Ohio Business Owners and the FUTA Tax

 

HM2015_DB

By: Chandra Reau, Staff Accountant

Ohio business owners with employees need to be aware of the 1.5% additional Federal Unemployment Tax Act (FUTA). Since Ohio is one of three remaining states that have not paid off their outstanding loan to the Federal Government, an additional 1.5% of FUTA tax on the first $7,000 of wages per employee is owed.

The FUTA law provides for a 5.4% credit for those employers who pay state taxes timely under an approved UI program.  When a state has an outstanding loan, the FUTA credit is reduced until the loan is repaid.  The reduction is 0.3% each year and this is the fifth year for Ohio, resulting in the additional 1.5%.

The total FUTA cost per employee in Ohio is 2.1%, or $147.00.  When employers file their 940 tax returns for 2015, the additional tax will be calculated and due.  The filing deadline is February 1, 2016.

For more information about FUTA and how it will affect your taxes, please contact us today. Our team can quickly provide you with answers to any questions you may have on this or other payroll tax issues.

Contact

Columbus Office

Holbrook & Manter
775 Yard Street, Suite 160
Columbus, OH 43212
Phone: 614.494.5300

Dublin Office

Holbrook & Manter
545 Metro Place S, Suite 100
Dublin, OH 43017
Phone: 614.766.3696

Marion Office

Holbrook & Manter
181 East Center Street
Marion, OH 43302
Phone: 740.387.8620

Marysville Office

Holbrook & Manter
103 Professional Parkway
Marysville, OH 43040
Phone: 937.644.8175