OH · Cost to hire 2026
How much does it cost to hire an employee in Ohio?
The real first-year cost of a W-2 hire in Ohio is the ongoing fully-loaded payroll plus the one-time spend to recruit, onboard, and equip the person. A $75,000 hire runs about $109,323 in year one.
The first-year cost to hire in Ohio is the sum of two distinct buckets: the recurring fully-loaded payroll you carry for as long as the role exists, and the one-time spend to recruit, onboard, train, and equip the new hire (HiringMath models roughly $8,500 in one-time costs plus about $1,500 a year in per-seat software). On the recurring side, Ohio's new-employer SUI rate is 2.7% on the first $9,000 of each worker's wages, a maximum of $243 per employee per year, sitting on top of federal FICA (6.2% Social Security and 1.45% Medicare) and 0.6% net FUTA. Ohio does impose a state income tax on wages, so payroll withholding registration is part of standard onboarding. There are no additional Ohio-specific employer payroll programs beyond SUI, which keeps the recurring tax surface comparatively narrow. For employers staffing Columbus logistics, Cleveland and Cincinnati healthcare, or manufacturing in Toledo and Dayton, the takeaway is that year-one cost is driven more by the one-time hiring outlay than by the modest $243 SUI ceiling.
Estimate a Ohio hire
Pre-filled with Ohio's 2.7% new-employer SUI rate. Adjust salary, benefits, and one-time costs to fit your hire.
First-year cost of a $75,000 hire in Ohio
| Recurring (annual) | |
| Base salary | $75,000 |
| Employer payroll taxes | $6,023 |
| Workers' comp | $750 |
| Benefits | $10,050 |
| Overhead | $7,500 |
| Software & toolsrecurs yearly | $1,500 |
| One-time (year one) | |
| Recruiting | $4,000 |
| Onboarding & training | $2,000 |
| Equipment & setup | $2,500 |
| Ongoing annual cost (year 2+) | $100,823 |
| Total first-year cost | $109,323 |
First-year cost by salary in Ohio
| Base salary | First-year total |
|---|---|
| $50,000 | $78,910 |
| $75,000 | $109,323 |
| $100,000 | $139,735 |
What drives the cost in Ohio
Ohio's new-employer SUI rate is 2.7% on the first $9,000 of wages, a maximum of $243 per worker per year (above the national average of 2.07%). That sits on top of 7.65% employer FICA and 0.6% FUTA. Ohio taxes wage income, which the employee pays, so it adds administration but not direct employer cost.
Compare and dig deeper
Weighing an employee against a contractor? See the Ohio W-2 vs 1099 comparison for the breakeven contract rate. Compare neighboring markets, including Alabama, District of Columbia, Florida, Georgia, or read how much it costs to hire an employee nationally.
Cost-to-hire FAQ for Ohio
- How much is Ohio SUI per employee in the first year?
- Ohio's new-employer SUI rate is 2.7% applied to the first $9,000 of each worker's wages, capping employer state unemployment cost at $243 per employee per year. Because the wage base is low, most full-time hires reach that ceiling early, so SUI is a small, predictable line relative to one-time hiring costs.
- What makes up the first-year cost to hire in Ohio?
- Year one combines ongoing fully-loaded payroll (gross wages, 7.65% employer FICA, 0.6% FUTA, and up to $243 in SUI) with one-time hiring costs. HiringMath defaults to about $8,500 for recruiting, onboarding, training, and equipment, plus roughly $1,500 a year in software per seat.
- Are there extra Ohio employer payroll taxes beyond SUI?
- No. Ohio levies no state-specific employer payroll programs such as paid-leave or disability contributions on top of SUI. Employers do withhold state income tax from wages, but that is an employee-side cost. Workers' compensation premiums, paid through Ohio's state fund, are a separate mandatory line item to budget.