How to Show Payroll Deductions for Ohio & Federal Taxes
The state of Ohio does not require Ohio employers to give employees a pay stub. Still, the employer can provide a pay stub if it wants to. Without a pay stub or a wage statement, it can be difficult for the employee to know her payroll tax deductions and calculate her take-home pay. A pay stub is a viable proof of income. It can also provide the employee with her year-to-date deduction amount -- a valuable tool, if she does not have her W-2 and needs to file her tax return, or if she needs to verify her W-2 data. You can provide employees with the necessary documentation to show Ohio and federal tax deductions.
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Instructions
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Use a spreadsheet or office suite program to create employee wage statements. At the top of the page, include the employer name and contact information, pay period start and end dates, pay date, employee name, and employee ID and/or department number (if applicable). Enter a few rows down and list the employee's hours worked, applicable pay rates, salary (if not hourly) and total wages.
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State the Ohio and federal tax deductions below the wages. List each deduction amount as a negative. Ohio requires employers to withhold state and local income tax from employees' wages. The federal government requires federal income tax withholding. Social Security and Medicare taxes are federal payroll taxes employers are also required to withhold. You can abbreviate the deductions as you wish. For example, "FIT" for federal income tax and "SS" for Social Security tax. Next to the current deduction amount, include the year-to-date amount for each deduction.
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List voluntary deductions, if applicable, as a negative. Voluntary deductions include company benefits, such as health benefits and retirement plans.
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State the employee's net pay. Subtract Step 2 and Step 3 from Step 1 to arrive at the net income. Print the wage statement and give it to the employee.
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Tips & Warnings
Use Ohio's withholding tax tables to figure Ohio state and local income tax withholdings.
Consult IRS Circular E to figure federal income tax withholding.
Figure Social Security tax at 6.2 percent of gross earnings and Medicare tax at 1.45 percent.
Payroll software generates pay stubs based on inputted wage and deductions data.
References
Resources
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