Ohio paycheck calculator employers use for hourly paychecks
The Ohio paycheck calculator, found at the top of this page, is a practical tool for double-checking your calculations for hourly employees or ensuring your staff receives the correct take-home pay. Beyond simply processing the numbers, it’s crucial to understand the nuances of how payroll is structured for those who are paid by the hour versus those who receive a fixed salary.
How Does Payroll Differ?
At its core, the process of running payroll is quite similar for any type of employee. You start with their gross wages (the total amount they earned during the pay period) and apply withholdings for federal, state, and local taxes, plus any other deductions (such as health benefits, retirement plans, or garnishments).
The journey from gross wages to net wages (the final take-home pay) doesn’t change much. The primary difference between payroll for hourly and salaried employees lies in how the gross wages are calculated in the first place.
Calculating Gross Wages for Hourly Employees
For workers whose compensation is based on the hours they work, gross wages are determined by multiplying the number of hours worked in the period by their hourly pay rate.
While this seems straightforward, it’s vital to consider overtime laws in many states, which may increase the employee’s pay rate if they exceed a certain number of hours per day (typically 8 hours) or per week (typically 40 hours). It is essential to account for these details when calculating paychecks for hourly workers.
Calculating Gross Wages for Salaried Employees
For those who receive an annual salary, gross pay is found by dividing the annual salary by the number of pay periods in the year.
Gross Wage Example (Based on a $100,000 Annual Salary):
| Pay Schedule | Gross Wages |
| Weekly (52 pay periods/year) | $1923.08 |
| Bi-Weekly (26 pay periods/year) | $3846.15 |
| Semi-Monthly (24 pay periods/year) | $4166.67 |
| Monthly (12 pay periods/year) | $8333.33 |
Choosing Compensation: Salary or Hourly?
When hiring, companies have some discretion to define who will be paid hourly and who will receive a fixed salary. Generally, employees with more consistent (fixed) hours and those at higher compensation levels tend to be offered a fixed salary. Conversely, workers at lower compensation levels with more variable hours are typically paid hourly.
Regardless of your compensation choice, it is fundamental to follow certain rules. The most important are the guidelines for exempt and non-exempt employees under the Fair Labor Standards Act (FLSA). In short, the FLSA establishes that workers must be entitled to overtime pay when they work more than 40 hours in a week, unless they are considered “exempt” and fit into one of these categories:
– They are an executive.
– They offer skilled professional services.
– They have administrative or management responsibilities.
– They are highly compensated (earning more than $151,164 per year in 2025).
– They are a computer programmer or analyst.
– They have an outside sales role.
There are other minor exceptions. For more information, take a closer look at the classification of exempt and non-exempt employees or reach out to a tax or employment professional if you have further questions.
From Gross Wages to Paycheck
After calculating gross wages, the next step is to determine the net payroll amount by applying tax withholdings (federal, state, and local) and any other applicable deductions. This procedure is essentially the same for all employees, whether they are hourly or salaried. To delve into the specifics of the process, see the section on calculating payroll taxes.
Finished using the Ohio paycheck calculator employers turn to?
Additional Resources for You, Provided by Beyond:
– State Minimum Wage: The hourly rate in 2025 is $10.70 per hour.
– Workers’ Compensation Insurance: It is required for most employers. Learn more in our Ohio workers’ compensation guide.
– New Hire Reporting Required: Yes.
– 2025 SUI (State Unemployment Insurance) Rate and Taxable Wage Base: $9,000. Rates range from 0.4% to 10.1%. The tax rate for new employees is 2.7%.
This article (and the mentioned paycheck calculator tool) is provided for informational purposes only and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors for formal consultation and final payroll numbers.