Ohio vs Texas Payroll Comparison
Compare payroll compliance requirements between Ohio and Texas. See key differences in wages, taxes, leave policies, and employer obligations.
Compare State Payroll Requirements
Select 2 states to compare their payroll compliance requirements side-by-side.
| Requirement | Ohio | Texas |
|---|---|---|
| Minimum Wage | ⚠️$10.45/hour (2024); small employers $7.25 | $7.25 (federal) |
| Tipped Minimum | $5.25 + tips = $10.45 | $2.13 + tips |
| Overtime Threshold | 40 hours/week (federal FLSA) | ⚠️40 hours/week (no daily OT) |
| Final Pay (Termination) | Next regular payday | Within 6 calendar days |
| Final Pay (Resignation) | Next regular payday | Next regular payday |
| PTO Payout Required? | ✓No (unless policy requires) | ✓No (unless policy requires) |
| Pay Frequency Mandate | Semi-monthly (twice per month) | Semi-monthly (most employees) |
| State Income Tax | ⚠️Yes (0% - 3.75% progressive) | ✓None |
| Unemployment Insurance | Yes | Yes |
| State Disability Insurance | ✓No | ✓No |
| Paid Family Leave | ✓No | ✓No |
| Paid Sick Leave | ✓No statewide mandate | ✓No (state preemption) |
| Workers' Comp Required | ⚠️Yes (BWC state fund - monopolistic) | ✓No (optional) |
Key Differences: Ohio vs Texas
OHOhio
- Minimum Wage:$10.45/hour (2024); small employers $7.25
- Tipped Minimum:$5.25 + tips = $10.45
- Overtime Threshold:40 hours/week (federal FLSA)
- Final Pay (Termination):Next regular payday
- Final Pay (Resignation):Next regular payday
- PTO Payout Required?:No (unless policy requires)
TXTexas
- Minimum Wage:$7.25 (federal)
- Tipped Minimum:$2.13 + tips
- Overtime Threshold:40 hours/week (no daily OT)
- Final Pay (Termination):Within 6 calendar days
- Final Pay (Resignation):Next regular payday
- PTO Payout Required?:No (unless policy requires)
Understanding Ohio and Texas Payroll Differences
State Income Tax: Ohio has state income tax (Yes (0% - 3.75% progressive)), while Texas has no state income tax. This significantly impacts both employer withholding responsibilities and employee take-home pay.
Minimum Wage: Ohio minimum wage is $10.45/hour (2024); small employers $7.25, compared to Texas at $7.25 (federal). Employers must pay at least the higher of federal, state, or local minimum wage requirements.
Paid Sick Leave: Ohio: No statewide mandate. Texas: No (state preemption). States with mandatory paid sick leave require employers to track accruals and provide specific leave entitlements.
For complete compliance requirements, review the full state guides for Ohio and Texas.