Local payroll and employment requirements that differ from or exceed Ohio state law
Last updated: January 2025
Ohio state minimum wage applies. Cleveland follows state rate.
No local paid sick leave requirement in Cleveland.
Flat 2.5% tax on wages, salaries, commissions, and other compensation earned in Cleveland or by Cleveland residents.
Cleveland residents receive partial credit (up to 1.5%) for taxes paid to other Ohio cities where they work. Maximum credit is 60% of Cleveland rate.
Business net profits from Cleveland operations taxed at 2.5%.
Tax on admission charges for entertainment events in Cleveland. Employers in entertainment industry must collect and remit.
Cleveland income tax is administered by CCA (Central Collection Agency). Employers register with CCA separately from RITA municipalities.
Employers with $12,000+ annual liability file monthly. Others file quarterly. Annual reconciliation due February 28.
Post-pandemic, Cleveland generally requires physical presence in the city for withholding obligation. Remote workers may not be subject to Cleveland tax.
These local rules apply in addition to Ohio state law. Employers must comply with whichever law provides greater protection to employees. Always verify current requirements with official sources.