TAXES 20-06, Ohio State Income Tax Withholding

Published: March 5, 2020
Effective: Pay Period 03, 2020

Summary

The pay period tax multiplication factor has changed from 1.075 to 1.032 for the State of Ohio.

No action on the part of the employee or the personnel office is necessary.

Tax Formula

State Abbreviation:

OH

State Tax Withholding State Code:

39

Acceptable Exemption Form:

IT-4

Basis for Withholding:

State Exemptions

Acceptable Exemption Data:

0/Number of Exemptions

TSP Deferred:

Yes

Special Coding:

Determine the Total Number of Allowances field as follows:
First Position - Enter 0 (zero).
Second and Third Positions - Enter the number of exemptions claimed.

Additional Information:

None

Withholding Formula (Effective Pay Period 03, 2020)

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Employees Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account — health care and dependent care deductions) from the amount computed in step 1.
  3. Add the taxable biweekly fringe benefits (i.e., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
  5. Determine the exemption allowance by applying the following guideline and subtract this amount from the gross annual wages to compute the taxable income:

    Exemption Allowance = $650.00 x Number of Exemptions

  6. Apply the taxable income computed in step 5 to the following table to determine the annual Ohio income tax withholding:

    Tax Withholding Table

    If the Amount of Taxable Income Is:

    The Amount of Tax Withholding Should Be:

    Over $0 but not over $5,000

    0.5%

    Over $5,000 but not over $10,000

    $25.00 plus 1.0% of excess over $5,000

    Over $10,000 but not over $15,000

    $75.00 plus 2.0% of excess over $10,000

    Over $15,000 but not over $20,000

    $175.00 plus 2.5% of excess over $15,000

    Over $20,000 but not over $40,000

    $300.00 plus 3.0% of excess over $20,000

    Over $40,000 but not over $80,000

    $900.00 plus 3.5% of excess over $40,000

    Over $80,000 but not over $100,000

    $2,300.00 plus 4.0% of excess over $80,000

    Over $100,000

    $3,100.00 plus 5.0% of excess over $100,000

  7. Divide the annual Ohio income tax withholding by the number of pay dates in the tax year to determine the pay period gross tax amount.
  8. Multiply the pay period gross tax by 1.032 to obtain the biweekly Ohio income tax withholding.

Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) Home page. Select the Publications tab and select U.S. Income Tax Formulas from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.

Previous Tax Bulletin

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal.