How to Figure Ohio Payroll Deductions

Federal withholding is taken from employee paychecks.

Payroll taxes are deducted from the paychecks of working people in Ohio for the federal government and for the future retirement of each employee. Social Security tax that is taken out of your paycheck now is the money that you will receive from Social Security when you reach a certain age. Medicare and federal withholding are also taken from each of your paychecks.

Instructions

1. Calculate the amount of federal withholding to take from an employee's paycheck based on the information found on the W-4 form they filled out upon hire. This information is important because it states the filing status and number of deductions each employee is claiming, which affects the amount of withholding that can be taken from their income. Each employee also has the option of having additional withholding removed from their paycheck. Use a payroll tax calculator to determine the amount of withholding to take out.

2. Multiply gross income for each employee by 0.062 to obtain the amount of money that needs to be withheld for Social Security.

3. Multiply gross income by 0.0145 to obtain the amount withheld for Medicare purposes.

Tips & Warnings

• Withholding amounts will be different for each employee. The tax percentage to calculate Social Security and Medicare withholding is the same for each employee.

References

• Ohio Department of Taxation: Employer Withholding Tax

Resources

• Your Money Page: Payroll Withholding