Ohio Unemployment Guide

This page is designed to help both Ohio employers and Ohio employees understand their responsibilities and rights when it comes to unemployment. While our payroll software automatically handles the calculation and payment of unemployment taxes (FUTA and SUTA), claims management and compliance require active participation by employers and employees.

For Ohio Employers

Unemployment Taxes (FUTA & SUTA)

  1. FUTA: Federal Unemployment Tax is charged on the first $7,000 of each employee’s wages per year.
  2. SUTA (Ohio): State Unemployment Tax is charged on the first $9,000 of each employee’s wages per year. Each employer has a unique contribution rate set by the Ohio Department of Job and Family Services (ODJFS).

Once an employee reaches the wage base for the year, no further unemployment tax is owed for that employee.

Employer Responsibilities

  • Keep accurate payroll records.
  • Respond promptly to unemployment claims filed by former employees.
  • Log into The SOURCE (Ohio’s unemployment website) to manage accounts, view rates, and respond to claims.
  • Consult with an employment attorney when needed, especially if you plan to contest a claim.

Claims Management

  • If an employee files for unemployment, you will be notified through The SOURCE.
  • Employers must provide accurate separation information (e.g., reason for termination).
  • Failure to respond can increase your unemployment tax rate.

For Ohio Employees

Employees should start here: Click Here

Understanding Your Rights

  • If you lose your job through no fault of your own, you may be eligible for unemployment benefits.
  • Benefits are not guaranteed — eligibility is determined by ODJFS.
  • Generally, you must have worked enough weeks in covered employment and earned sufficient wages to qualify.

Filing a Claim

  • Claims are filed online through The SOURCE or by phone.
  • You will need your personal information, Social Security number, and details of your most recent employer.
  • Continue to file weekly claims and actively search for work to maintain eligibility.

What to Expect

  • Benefits are paid weekly, based on a percentage of your average earnings.
  • You must report any work or income while receiving benefits.
  • False information can result in penalties and repayment obligations.

Managing Unemployment Through The SOURCE Website

https://thesource.jfs.ohio.gov/employer.html

Employers: The SOURCE allows you to manage unemployment taxes, respond to claims, and track your account history. Keeping your account up to date helps control costs and compliance risk.

Employees: The SOURCE is where you file your claim, certify weekly benefits, and check your claim status. Keeping your information accurate ensures benefits are paid without delay.

Our payroll software takes care of collecting and remitting unemployment taxes, but claims and eligibility are separate from payroll processing. Employers should take unemployment claims seriously, and employees should know their rights and responsibilities when filing.

Why FUTA/SUTA Taxes Stop Showing Later in the Year

FUTA (Federal Unemployment Tax) and SUTA (State Unemployment Tax) work differently than regular payroll taxes like Social Security or Medicare. Instead of being taken on all wages, they only apply up to a certain limit each year, called the wage base.

FUTA (federal): Taxed at 0.6% (after credits) on the first $7,000 of each employee’s wages per year.

SUTA (state): Each state sets its own rate and wage base (in Ohio it’s $9,000 for 2025).

Once an employee’s wages reach that wage base, no more FUTA or SUTA tax is owed for the rest of the year. That’s why payroll software will automatically stop calculating those taxes in the second half of the year (or earlier, depending on when the employee passes the threshold).

Example:

In 2025 an Ohio employee earns $1,000 per paycheck.

After 7 paychecks, they’ve reached $7,000 in wages → no more FUTA is charged for that employee for the rest of the year.

Once they hit $9,000 in wages → no more SUTA is charged for the rest of the year.

So if you notice FUTA/SUTA “disappearing” from payroll calculations mid-year, it’s not an error,  it means the system has already met the annual requirement for that employee.

When the new year begins the FUTA/SUTA collection begins again.