How Much Does It Cost to Hire an Employee in Ohio? (2026)
State-specific payroll taxes, workers' comp, and total employer costs in Ohio.
Hiring a $60,000/year employee in Ohio costs employers approximately $65,337 total in 2026, including $5,337 in mandatory payroll taxes and workers' comp. That's a 1.09x multiplier on base salary.
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Total Cost at $60K Salary
$65,337
Cost multiplier: 1.09x
SUTA Rate (Mid)
1.3%
Wage base: $9,000
Workers' Comp Rate
0.98%
Has state income tax
Key Insight
For a $60,000 salary in Ohio, employers pay $5,337 in mandatory taxes — a 1.09x cost multiplier. Ohio's SUTA rate (1.3%) is below the national average of 1.70%.
Model your specific hire
Use our interactive calculator pre-loaded with Ohio's tax rates. Adjust salary, benefits, and overhead to get your true cost.
Ohio Employer Tax Details
State-specific payroll obligations for employers
| SUTA Rate Range | 0.1% – 6.5% |
| SUTA New Employer Rate (typical) | 1.3% — No change from 2025 |
| SUTA Wage Base | $9,000 |
| Workers' Compensation (avg) | 0.98% of payroll — No change from 2025 |
| State Income Tax | Yes |
2026 Rate Changes in Ohio
- — SUTA rate unchanged at 1.3% from 2025 to 2026.
- — Workers' comp rate unchanged at 0.98% from 2025 to 2026.
Rate changes reflect Ohio #{TaxConstants::TAX_YEAR} announcements vs. 2025 baseline. Workers' comp rates are industry averages and vary by classification code.
Example Employer Costs in Ohio
Mandatory employer taxes only (no benefits or overhead)
| Component | $40,000 Salary | $60,000 Salary | $80,000 Salary |
|---|---|---|---|
| Social Security (6.2%) | $2,480 | $3,720 | $4,960 |
| Medicare (1.45%) | $580 | $870 | $1,160 |
| FUTA | $42 | $42 | $42 |
| SUTA (OH) | $117 | $117 | $117 |
| Workers' Comp | $392 | $588 | $784 |
| Total Employer Taxes | $3,611 | $5,337 | $7,063 |
| Total Cost (salary + taxes) | $43,611 (1.09x) | $65,337 (1.09x) | $87,063 (1.09x) |
These estimates include mandatory employer payroll taxes only. Add benefits ($7K-$17K) and overhead (~10% of salary) for full cost.
Tax rates sourced from IRS Publication 15, SSA COLA notices, and Ohio Department of Labor. Social Security tax is 6.2% of wages up to $184,500. Medicare is 1.45% with no wage cap. FUTA is 0.6% on the first $7,000 after credit.
How Ohio Compares
Ohio's typical SUTA rate of 1.3% is below the national average of ~1.70%.
Workers' compensation at 0.98% of payroll is below the national average of ~1.20%.
Ohio Employer Environment
Below-average employer costs- State income tax applies — factor into total compensation packages
- SUTA rate 1.3% (wage base $9,000) — in line with national average
- Workers' comp rate 0.98% — near national average, varies by industry classification
Ohio's overall employer tax burden is broadly in line with the national average. Review SUTA and workers' comp rates relative to your industry classification for a more precise picture.
Ohio Employment Profile
Ohio's $9,000 SUTA wage base is among the lowest in the Midwest, and it operates a state-managed workers' compensation bureau (BWC) that provides stable — though sometimes higher — rates.
healthcare, automotive manufacturing, financial services
Ohio's Bureau of Workers' Compensation charges industry-rated premiums; employers can earn group rating discounts through industry associations, sometimes reducing rates significantly.
Cost at Different Salary Levels in Ohio
Total employer cost including all mandatory payroll taxes
Compare Ohio With
Employee Costs in Other States
Hiring Cost by Industry in Ohio
Workers' comp rates vary significantly by industry — restaurant and construction workers cost far more to insure than office staff.
Average Wages by Occupation in Ohio
BLS OEWS 2024Median annual wages from the Bureau of Labor Statistics — use these as your baseline salary when estimating total hiring cost.
| Occupation Group | Median Annual | Employed |
|---|---|---|
| Management | $101,840 | 382,450 |
| Computer and Mathematical | $96,730 | 147,960 |
| Architecture and Engineering | $89,820 | 102,790 |
| Legal | $89,180 | 33,530 |
| Healthcare Practitioners and Technical | $79,130 | 403,860 |
| Life, Physical, and Social Science | $76,600 | 41,070 |
| Business and Financial Operations | $76,430 | 358,160 |
| Construction and Extraction | $60,710 | 190,300 |
States With Similar Hiring Costs
These states have SUTA rates close to Ohio's 1.3% — good for cost benchmarking.
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Simplify Payroll in Ohio
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