One organization recently ranked Ohio as one of the least business-friendly states in the U.S., and part of the reason is its unemployment taxes.

The Washington, D.C.-based Tax Foundation’s low ranking for Ohio was based on the complaints of business owners, mostly in the manufacturing sector, who find the state’s taxes too high and confusing. Ryan Augsburger, the director of public policy for the Ohio Manufacturers Association, explained to Cleveland-based publication The Plain Dealer that “there’s always room for improvement.” The multiple, complicated layers of taxes that business owners face in Ohio are just too burdensome for some.

“Business owners think the state’s taxes too high and confusing.”

Complex taxes in Ohio prove burdensome 
Though unemployment taxes are relatively low in Ohio, they are part of the complicated collection of taxes that businesses are subject to in the state, and they are getting higher. The state failed to repay the debt that it incurred after borrowing billions from the federal government to cover unemployment benefits during the recession, and as a result unemployment taxes in Ohio rose this year.

Since Jan. 1, the rate has been $84 per employee, or $282 million total, up from $63 per employee, or $187 million in 2014. The amount that employers must pay to cover the debt owed by the state will increase each year it is still owed to the federal government.

Unemployment tax increases affecting Ohio businesses
The rising unemployment taxes have presented challenges to some businesses in the state. Marie Stokowski, corporate accountant for Supplemental Staffing, explained to Watchdog.org that the taxes have uniquely affected her company, which deals in people.

“Because of our unique business, we have to justify this additional cost to our own clients,” she said. “We could be paying down our own line of credit or making capital purchases if we didn’t have this tax burden.”

At Corporate Cost Control, we work closely with employers across the country to better manage the nuances of unemployment insurance. Legislation changes on the state level could impact you today, and we welcome any questions or concerns you may have on a wide range of topics.


Contact CCC to see how we can save your organization time and money.
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(800) 207-6926

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