Deduction of state income tax and school district tax is mandatory, except for domestic and agricultural employees, those who earn less than $300 per quarter, employees performing services for a foreign government or an international organization, and certain individuals under the age of 18 who deliver newspapers. Employers that deduct for taxes must furnish employees with a written statement showing the total amount earned during each calendar year and the amount deducted and withheld for each tax by January 31 of the following year. Employees who leave the job before the close of the calendar year must be given the statement within 30 days of the time they left the job (OH Stat. Sec. 5747.06).
Several additional rules and requirements apply for deduction of garnishments and wage assignments.
Employers may make deductions that are:
• Authorized by employees, such as deductions for charitable contributions, savings programs (including credit unions), repayments of loans, and purchase of U.S. or corporate bonds
• Pursuant to written agreements for employee benefits such as health, welfare, and retirement benefits, and vacation, separation, and holiday pay
An employer that agrees to make authorized deductions for benefits must remit the funds within 30 days of the close of the pay period. Employers that fail to deposit the amounts within 30 days are subject to fines (OH Stat. Sec. 4113.15).
Employers may not make deductions for the following:
• Destruction or damage to wares, tools, or machinery unless the employer and employee have an express contract permitting such a deduction (OH Stat. Sec. 4113.19)
• Losses due to a minor's negligence, failure to ...