Ohio Makes Unemployment Tax Reporting More Efficient For Multi-Business Employers

The start of the new year has brought a welcome change to Ohio unemployment tax reporting. Beginning Jan. 1, 2025, Ohio employers may now file their unemployment tax reports for multiple businesses through a single unemployment insurance account. This practice is called common paymaster reporting.

The change in reporting is the result of a revision to the Ohio Administrative Code by the Joint Committee on Agency Rule Review (JCARR). The Ohio Department of Job & Family Services (ODJFS), which administers Ohio unemployment taxes, initiated the change. Ohio Administrative Code Rule 4141-11-13 explains unemployment tax reporting procedures when there is concurrent employment and reorganization among substantially commonly owned, managed, or controlled companies. Prior to this change, employers with multiple locations or subsidiaries were prohibited from using common paymaster reporting. This meant they had to file separate Ohio unemployment tax reports for each entity.

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The ODJFS updated its website to reflect this change and provides further guidance on how to apply for a single account. It is important to note that applications received by the ODJFS prior to Jan. 1, 2025, will be denied.

When applying, taxpayers have two options. They may:

  1. Request to file as a concurrent employer.
  2. Request a total transfer due to reorganization.

Given the Internal Revenue Code permits common paymaster reporting, Ohio employers had often requested the same treatment for Ohio unemployment tax purposes.

This rule change is viewed as positive for Ohio employers. It should aid in making the unemployment tax reporting process in Ohio more efficient. During testimony from the Ohio Chamber of Commerce in support of the rule change, it was noted that the changes would result in “pro-business reforms.” Furthermore, the changes were said to be a way to “help move Ohio’s business climate forward.”

Next Steps & Further Clarification

If you have questions regarding common paymaster reporting and this rule change, reach out to an unemployment tax professional at GBQ.

By Sara Goldhardt, CPA, director, state and local tax services


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