TO STRENGTHEN OHIO S FAMILIES THROUGH THE DELIVERY OF INTEGRATED SOLUTIONS TO TEMPORARY CHALLENGES UNEMPLOYMENT COMPENSATION GUIDE

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1 TO STRENGTHEN OHIO S FAMILIES THROUGH THE DELIVERY OF INTEGRATED SOLUTIONS TO TEMPORARY CHALLENGES UNEMPLOYMENT COMPENSATION GUIDE Wage Reporting. Tax Provisions. Benefit Payment Provisions. Appeal Rights

2 Central Office Numbers (Columbus) Contribution Section FAX Compliance Section FAX Collection Section FAX ERIC System Support FAX Investigation Section FAX Redetermination & Appeals FAX Special Claims Section FAX Trade Section FAX UC Technical Services FAX Wage Record Section FAX Ohio Relay Service (Telephone accessibility for the deaf, deaf-blind, hard-of-hearing or speech-disabled) Unemployment Compensation Claimant Customer Service Line This service provides claimants with 24-hour general claims information and access to receive information that is specific to their claim during work hours (8AM to 5PM) with the use of a touch-tone telephone. Unemployment Compensation Tax Customer Service Line This number provides access for assistance regarding Ohio unemployment taxes. Voice mail boxes are available to employers to request forms and information. Unemployment Compensation Review Commission (UCRC) FAX

3 FOREWORD To assist employers, claimants and other interested individuals in understanding the requirements of the Ohio unemployment compensation law, the Ohio Department of Job and Family Services has a number of publications available for distribution. The Ohio Unemployment Compensation Guide explains in detail how the unemployment compensation (UC) law works. This guide provides an overview of tax provisions, contribution rates, benefit payment provisions, appeal rights and wage reporting provisions. Employers with fewer than 200 employees who have access to personal computers should report online using the Employer Resource Information Center (ERIC) at or the Ohio Business Gateway at. Employers who had no employees and paid no wages during a quarter can file their reports for that quarter via an Interactive Voice Response (IVR) telephone system by calling UC TAX ( ). The Ohio Employer s Guide to Magnetic Wage Reporting has been developed to explain required formats, records and specifications, and the required pre-approval processes for the submission of wage record data via magnetic media. Employers with magnetic media capabilities are encouraged to report wage information to the department on CD, DVD, or diskette. Those employers with 200 or more employees should report on magnetic media. Software for diskette wage reporting is available free of charge. FTP (file transfer protocol) reporting is also available for the submission of quarterly unemployment reports by large employers. If you require additional information about magnetic media or FTP reporting, please call the Wage Record Section at (614) Copies of the guides listed above may be downloaded at stm or obtained by contacting the central ODJFS UC Tax office at the following address: Ohio Department of Job and Family Services Attention: Wage Record Section P.O. Box Columbus, Ohio Telephone: (614) For the convenience of the reader, the subtopics within the guide are accompanied by references, where pertinent, to the sections of the Ohio Revised Code on which the text is based. These explanations are intended as informational only and should not be construed as having the force or effect of law. i

4 Contents Central Office Numbers (Columbus)... Inside front cover FOREWORD... i INTRODUCTION... 7 WHO IS LIABLE UNDER OHIO S UNEMPLOYMENT COMPENSATION LAW... 9 Who Is An Employer... 9 When An Employer Becomes Liable... 9 Other Ways An Employer May Become Liable... 9 Employer Relationships Affecting Liability... 9 Elective Coverage Ruling On Non-Liability Duration Of Liability Transfer Of Business Transfers Between Commonly Owned Businesses & Contribution Rate Manipulation...11 COVERED AND EXCLUDED EMPLOYMENT Covered Employment Excluded Employment Independent Contractors Both Covered And Non-Covered EMPLOYER OBLIGATIONS Employer Must Report Own Liability Department Will Determine Liability Employer Account Number Maintenance Of Records Employment Record Furnishing Information To The Department Confidentiality Of Information Final Reports Employer Audits QUARTERLY WAGE AND TAX REPORTING PROVISIONS Employer Reporting Provisions Obtaining Additional Forms And Reporting Lost Or Damaged Reports Internet Filing Magnetic Media Reporting Telephone Filing Timely Filing ii

5 Failure To File The Quarterly Wage Detail And Quarterly Summary Report Or Reimbursing Quarterly Wage Detail Report Failure To Pay Contributions When Due Guidelines For Completing Reports General Information Unemployment Compensation Quarterly Tax Return Wage Detail Instructions Unemployment Compensation Quarterly Tax Return Quarterly Summary General Filing Information For Reimbursing Employers Unemployment Compensation Quarterly Tax Return Reimbursing Wage Detail Instructions Common Errors Corrections And Amendments CONTRIBUTION RATES Quarterly Contributions Computation Date Standard Rate Experience Rate Rate Computation Example Of Positive Balance Example Of Negative Balance Rate Schedule Delinquency Rate Penalty Rate Contribution Rate Notice Appeals MUTUALIZED ACCOUNT AND TAX Mutualized Tax Minimum Safe Level COMMON RATE GROUPS Common Rate Groups NONPROFIT AND PUBLIC EMPLOYERS Nonprofit Employers Notice Of Election By Nonprofit Organization Bonding Monthly Billings Quarterly Reporting iii

6 Group Accounts Public Employers BENEFIT PAYMENT PROVISIONS - EXPLANATIONS Base Period Alternate Base Period Benefit Year Within The Benefit Year FILING THE APPLICATION Purpose Of The Work History Dependency Information DETERMINATION OF BENEFIT RIGHTS Valid Or Allowed Application Unemployed At The Time Of Filing Qualifying Week Benefit Rights Dependents Average Weekly Wage Weekly Benefit Amount Number Of Benefit Weeks Total Benefits Obtaining Separation Information For Determination Purposes Required Separation Information FILING A WEEKLY CLAIM Registration How A Weekly Claim Is Filed Waiting Week Reopening A Claim ELIGIBILITY FOR BENEFITS Aliens Able To Work Available For Work Actively Seeking Work Attending An Approved Training Course Disqualification Of School And College Employees Combining Educational And Non-Educational Employment Suitability Of Work Unemployment Compensation Reemployment Services Program Reason For Unemployment iv

7 Labor Dispute Disciplinary Layoff Quit Due To Family Obligations Duration Suspension Quit Without Just Cause Quit To Accept Recall Or Other Employment Seniority Layoff Discharge With Just Cause Commitment To A Correctional Institution Refusal To Accept Work Refusal Of A Referral To Work Separated Because Of Dishonesty Quit To Attend School False Statements Fraudulent Misrepresentation EARNINGS AND DEDUCTIBLE INCOME Earnings During The Week Earnings Deducted (20% Exemption) Deductible Income Income Not Deducted SEASONAL EMPLOYMENT Seasonal Employer Definition Seasonal Employment Benefits Seasonal And Non-Seasonal Employment Application For Seasonal Ruling OUT-OF-STATE CLAIMS Interstate Claims Combined Wage Claims THE EMPLOYER S ROLE IN BENEFIT PROCEDURES Maintain Employment Records Employment Record Furnishing Information To The Department Use Of Separation Information Submitted By Employer Charges To The Mutualized Account Proportionate Charging Of Benefits To Employer Accounts Monthly Summary Of Charges To Employers Nonprofit And Public Reimbursing Employers Billing Eligibility Notice v

8 Suspense Account Request For Information On Additional Claim Special Audits And Investigations NOTICES AND APPEALS Interested Party Determination Of Benefit Rights Payment Of Benefits Right Of Appeal Request For Appeal Redetermination Depositions, Oaths And Subpoenas Review Commission Appeal To Court Representation By An Agent COURTS AND THEIR LOCATIONS JOB AND FAMILY SERVICES PROCESSING CENTERS ODJFS COMPLIANCE OFFICES... Inside back cover vi

9 INTRODUCTION The Ohio Department of Job and Family Services (ODJFS) assists employers in meeting their labor needs, helps job seekers in attaining gainful employment, aids unemployed workers by maintaining benefit payment programs, supports benefit payments by collecting employer contribution payments (taxes) and administers job placement and job training programs. The Ohio Unemployment Compensation Trust Fund is funded from payroll taxes paid by Ohio employers and is used to pay benefits to unemployed workers. Administrative funds for ODJFS are allocated by the federal government from federal payroll taxes that employers pay to the Internal Revenue Service. ODJFS collects wage data for all employees on a quarterly basis for the primary purpose of determining claimants eligibility for unemployment compensation benefits when an application for benefits is filed. ODJFS offers online access to Ohio s unemployment compensation systems. The Ohio Job Insurance (OJI) system is a web-based system used to manage unemployment benefits. The Employer Resource Information Center (ERIC) is a web-based system to manage unemployment taxes. Both systems can be found at OJI offers a centralized statewide database and provides access for three major users: ODJFS staff, claimants filing for unemployment benefits and/or seeking work, and employers funding the benefits. ERIC offers employers and their representatives (Third Party Administrators or TPAs) an online system for managing their state unemployment tax accounts. At present separate login procedures exist for each system. However, we are exploring a single sign-on process for a future implementation. The table below contains information specific to each system. Information needed to obtain online web access Use the system to: Help is available System requirements OJI *UI Account Number *Plant # *Federal Tax ID (FEIN) *Registration Code (New employers and/or third party administrators may follow the prompts to complete registration which may include contacting Program Services at ) *Access UI Benefit forms and notices *Respond to Requests for Separation Information *Submit Fact-Finding Information *File eligibility notices and appeals *View benefit charge statements *Employer Unemployment Compensation Accounts online at EmployerChoice.html *Internet Explorer version 5.5 or higher *Adobe Acrobat Reader version 4.02 or higher 7 ERIC *UI Account Number *Federal Tax ID (FEIN) *TPAs will need their state TPA number *Access UI Tax forms and notices *Register your new business and receive an Ohio UI account number *File quarterly wage reports *Make UI tax payments *Authorize a TPA to manage your account *View your annual tax rates and file appeals of rate notices *Update address and contact information *Employer and TPA Demos at ohio.gov/ouc/empdemo.stm *Internet Explorer version 6.0 *Adobe Acrobat Reader version 9.3.3

10 Contact information Feedback Via at *Via at *By phone at ERIC System Support at , ext *Monday through Friday 8:00 AM 5:00 PM To make full use of the online systems, your company must designate an account administrator who will register at The administrator will be provided a user name and password and may add or remove additional users as needed (only the account administrator can reset users passwords or add/delete users from your account). Because access to each system is separate (at the time of this revision), the administrator must register at both systems. A company may designate separate administrators for each system, or the same individual may be designated for both.. 8

11 WHO IS LIABLE UNDER OHIO S UNEMPLOYMENT COMPENSATION LAW Who Is An Employer Section (A) The Ohio unemployment compensation law describes an employer as any individual or type of organization including any partnership, limited liability company, association, trust, estate, joint stock company, insurance company, corporation (domestic or foreign), receiver or trustee in bankruptcy, trustee or successor thereof, or the legal representative of a deceased person. The law also includes the state, its instrumentalities, its political subdivisions, their instrumentalities and Indian tribes as potential subject employers. To register for an account online, please visit When An Employer Becomes Liable Section (A) An employer becomes liable under the Ohio unemployment compensation law when the employer has: 1. At least one employee in covered employment for some portion of a day in each of 20 different weeks within either the current or the preceding calendar year (it need not be the same employee), or 2. Paid wages of $1,500 or more to employees in covered employment in any calendar quarter within either the current or the preceding calendar year. Or, in the case of domestic service: 3. Paid cash remuneration of $1,000 in a calendar quarter within either the current or the preceding calendar year. Or, in the case of a farm operator or crew leader: 4. Paid cash remuneration of $20,000 or more in a calendar quarter, or had at least 9 10 individuals in agricultural employment for some portion of a day in each of 20 different weeks in either the current or the preceding calendar year. Or, in the case of an organization exempt from income tax under Section 501(a) of the Internal Revenue Code as described in Section 501(c) (3) of that code: 5. Had four or more employees in covered employment for some portion of a day in each of 20 weeks in either the current or the preceding calendar year. Or in the case of the state, its instrumentalities, its political subdivisions, their instrumentalities, and Indian tribes, liability is established if the employer had at least one individual in employment. Only the wages paid to employees in covered employment can be used in establishing and in determining the benefit amounts payable if and when such employees become unemployed. Other Ways An Employer May Become Liable Sections (A) and (F) An employer may become liable by: 1. Having been subject to the Federal Unemployment Tax Act in either the current or preceding calendar year, or; 2. Acquiring a business from an employer who was subject to the Ohio law at the time the change of ownership occurred; or 3. Electing to cover its employees voluntarily. Employer Relationships Affecting Liability Section (A) and (B) If the business is a proprietorship, then the spouse, the parents of the proprietor, the children of the proprietor if they are under 18

12 years of age, and the proprietor, are not to be considered employees in determining liability, nor are their wages to be included in the wage detail and quarterly summary reports. In those cases where the business is owned by a general partnership, the partners are the employers and are not to be considered employees in determining liability nor are their wages to be included in the quarterly wage detail and quarterly summary reports. If a business is incorporated, then the corporation is the employer and all those rendering service, including stockholders and their family members and officers of the corporation, are to be considered employees in determining liability. Wages or salaries paid to all individuals considered as employees are to be included on the quarterly wage detail and quarterly summary reports. Elective Coverage Section (A) Employers who employ individuals whose services are excluded from covered employment may, under certain conditions, elect to cover those services. Generally, unemployment insurance may be elected by individual employers, including individual partners in a partnership who are employers, and to cover services not in employment. Written election must be filed with and approved by the director. Ruling On Non-Liability ODJFS Rule No organization shall be deemed to be excluded or non-liable until it has submitted a Report to Determine Liability (form JFS-20100) and the department has ruled there is no liability. Any change in the character, purpose, or method of operation of such organizations shall be reported to the department in order that the effect of such change on the status of the organization may be determined. Duration Of Liability Section (A) An employer s liability is determined on a calendar year basis and is effective with the beginning of the calendar year that the employer first becomes liable. Such liability continues through that calendar year and for each succeeding calendar year pursuant to the policy guidelines below. During the entire period of liability, the employer must continue to file quarterly reports even if no taxable wages are paid. Policy: Any employer who incurs liability in any calendar year will continue liability into the next succeeding calendar year (first carryover year) by virtue of Section (A)(1)(a), (b), (c), and (d) and Section (A)(3). All employers, except those having domestic service in a private home and nonprofit organizations, will continue liability into an additional succeeding calendar year (second carryover year), by virtue of Section (A)(1)(e)(i) and FUTA Section 3306(a) (1)(A) and (B), provided the employer has some employment and paid some wages in the succeeding year(s). Employers will be required to report and pay contributions for the entire period of liability, as indicated herein. Provided that the employer has not reincurred liability in the carryover years, by again meeting the liability criteria set forth in Section (A), the employer s account will be determined non-liable at the end of the carryover period. Any subsequent incursion of liability would restart the liability cycle. Transfer Of Business Section (F); ODJFS Rules through In the event of the transfer of all of the trade or business of an enterprise that is in operation, the entity acquiring the enterprise becomes the successor in interest. This is mandatory under the law and in this event the successor assumes all of the resources and liabilities of the predecessor s account. The employer must file form JFS-20101, Transfer of Business. If an employer acquires substantially all of the trade or business of an enterprise and thereafter employs substantially the same individuals who were employed in the 10

13 acquired business, the employer may become a successor in interest upon filing form JFS , Application for Voluntary Successorship: Transfer of Substantially All Assets. director will use objective factors that may include all of the following: 1. The cost of acquiring the business; The law also provides certain conditions under which a purchaser who acquires an identifiable part of an enterprise may, if there is mutual consent between buyer and seller, be assigned a proportionate share of the predecessor s account. In order to request a partial transfer of employer experience, form JFS-20119, Application for Voluntary Successorship: Transfer of Clearly Segregable and Identifiable Portion must be filed. The application must be signed by both parties to the transaction. To report a transfer of business online, please visit Transfers Between Commonly Owned Businesses & Contribution Rate Manipulation Section (G), , and ; ODJFS Rules and If an employer transfers its trade or business, or a portion of its trade or business, to another employer and, at the time of the transfer, both employers are under substantially common ownership, management, or control, then the unemployment experience attributable to the transferred trade or business, or the portion of the trade or business, will be transferred to the employer to whom the trade or business was transferred and the contribution rates of both employers will be recalculated accordingly. The employer must file form JFS-20119, Application for Voluntary Successorship: Transfer of Clearly Segregable and Identifiable Portion. If one employer acquires the trade or business of another employer, the unemployment experience of the acquired trade or business will not be transferred to the acquiring employer if the director finds that the business was acquired solely or primarily for the purpose of obtaining a lower rate of contributions. In determining whether the business was acquired solely or primarily for the purpose of obtaining a lower rate of contributions, the Whether the business activity continued in its previous form; 3. If the business was continued, how long the business was continued; 4. Whether a substantial number of new employees were hired for performance of duties unrelated to the business activity conducted prior to the acquisition. If a person knowingly violates, attempts to violate, or advises another person in a way that results in a violation of the Ohio Unemployment Compensation Law related to determining the assignment of a contribution rate, the person is subject to the following penalties: 1. If the person is an employer, the director shall assign the employer the highest maximum rate or penalty rate assignable for the rate year during which the violation or attempted violation occurred and the three rate years immediately following that rate year, except that, if the person s business is already at the highest rate for any of those years, or if the amount of increase in the person s rate would be less than two per cent for that year, then an additional penalty rate of contributions of two per cent of taxable wages shall be imposed for that year. 2. If the person is not an employer, the director shall assess a fine of five thousand dollars. Whoever knowingly transfers employees of a trade or business or advises another person to transfer employees in violation of division (A) of section of the Revised Code is guilty of unemployment tax evasion. In addition to the penalties cited above, if the tax avoided by the trade or business is less than ten thousand dollars, the violation is a misdemeanor of the first degree under section of the Revised Code. If the tax avoided is ten

14 thousand dollars or more, the violation is a felony under section of the Revised Code, with increased criminal penalties as follows: 1. If the tax avoided by the business is ten thousand dollars or more but less than fifty thousand dollars, the violation is a felony of the fifth degree. 2. If the tax avoided is fifty thousand dollars or more but less than one hundred thousand dollars, the violation is a felony of the fourth degree. 3. If the tax avoided is one hundred thousand dollars or more, the violation is a felony of the third degree. 12

15 COVERED AND EXCLUDED EMPLOYMENT Covered Employment Section (B)(1) and (2) An employer is liable under the Ohio unemployment compensation law if the required remuneration is paid to persons in covered employment. The Ohio law defines employment as service performed for wages under any contract of hire, written or oral, express or implied. The law further provides that covered employment shall include an individual s entire service performed for a subject employer within the State of Ohio unless that type of employment is excluded from coverage (see following list of excluded employment). Under certain circumstances, coverage under Ohio law may be extended to include the services performed by an individual both inside and outside Ohio. The department must decide in each case whether all such services can be covered under Ohio law. If an employer has this type of employment, the department should be contacted for a ruling. Excluded Employment Section (B)(3) Certain types of employment are specifically excluded from coverage. An employer is not liable under the law when all individuals performing service are in excluded or noncovered employment, nor can such employees be considered in determining liability. Wages paid to non-covered employees are not subject to the payment of contribution, nor can they be used in establishing a claimant s eligibility or in the computation of benefit amounts. where the services are being performed for such school, college or university; Students in a full-time program taken for credit, who are engaged in a work-study program when the working portion is a recognized part of the student s required course of study at a public or parochial high school, college or university (the exclusion pertains to the work being performed for the outside employer); Family employment, such as an individual working for his or her spouse, parent working for a son or daughter, or children under age 18 working for a parent; Individuals compensated solely by way of commissions and whose services have been held to be not subject to the Federal Unemployment Tax Act (FUTA) (the employer should have a letter of exemption from the Internal Revenue Service); Individuals employed by a church or convention of churches, or an organization that is operated primarily for religious purposes; Duly ordained ministers in the exercise of their ministry or by a member of a religious order in the exercise of duties required by such order; Individuals receiving rehabilitative services in a facility (sheltered workshop) conducted for such purposes (the exclusion applies only to those beneficiaries of the rehabilitative program who cannot be readily absorbed in the competitive labor market); The following is a partial list of excluded employment. Some are only applicable to nonprofit organizations and these are indicated in the text. Students enrolled and regularly attending classes at a school, college or university 13 Employees of nonprofit organizations other than those described in Section 501(c)(3) of the Internal Revenue Code, whose earnings do not exceed $50 in any calendar quarter; Casual labor not in the usual course of an

16 employer s trade or business; Student nurses in the employ of a hospital or nurses training school, or an intern (who has completed four years in an approved medical school) in the employ of a hospital; Persons engaged in work relief or work training for nonprofit organizations, hospitals, colleges or universities, the state or a political subdivision, where such work is financed in whole or in part by the state or federal government; and Patients in a hospital and inmates performing services in a prison or custodial institution. More detailed information on these exclusions may be obtained by contacting the department s Contribution Section at P.O. Box , Columbus, Ohio , or the Compliance Section representative in any of the department s Compliance offices listed inside the back cover of this guide. Independent Contractors Section (B)(1) The services of an individual determined to be an independent contractor (under contract to perform a special service for an employer) are also excluded from covered employment. To be excluded, it must be established by the employer that the contractor is free from direction and control over the service being performed. See ODJFS Rule Both Covered And Non-Covered Section (B)(4) With respect to individuals performing both covered and non-covered employment for the same employer, if one-half or more of the services performed by an employee in a pay period (not more than 31 days) is in covered employment, all the service performed by the employee in the pay period shall be deemed in covered employment. If more than one-half of the employee s services in a pay period is noncovered employment, then all the services in the pay period shall be considered as being in non-covered employment. 14

17 EMPLOYER OBLIGATIONS Employer Must Report Own Liability It is the employer s responsibility to report liability as soon as there are one or more employees in covered employment. This may be done by writing to the Contribution Section, Ohio Department of Job and Family Services, P.O. Box , Columbus, Ohio , or the employer may contact the nearest local compliance office of the department to obtain the proper form (Report to Determine Liability, JFS-20100). Failure to promptly report liability can result in the issuance of late filing assessments. To register for an account online, please visit Department Will Determine Liability The department will determine the employer s liability on the basis of the information supplied by the employer on the Report to Determine Liability (form JFS-20100), and any other facts that are available. The decision is then issued to the employer on department form (JFS 20161) Determination of Employer s Liability and Contribution Rate Determination. Employer Account Number Each liable employer is assigned a 10-digit employer account number. This number appears on the Quarterly Wage Detail and Quarterly Summary Report or the Reimbursing Employer s Quarterly Wage Detail Report documents sent to the employer. Employers should show this number on all tax correspondence, forms and remittances submitted to the department. Failure to show the account number may result in delays in processing documents. Maintenance Of Records Section The law requires each covered and noncovered employer to keep a true and accurate employment record of all its employees, including hours worked and wages paid, and to furnish such information to the department upon request. The employment records must be preserved and maintained for a period of not less than five years after the calendar year in which remuneration is paid to employees. Employment Record Section ; ODJFS Rule Accurate permanent employment and payroll records must be maintained by every employer who has one or more employees. These records must contain the following information for each employee: Name and address; Social security account number; Amount of gross earnings for each pay period before deductions for any purpose; Date of payment and the amount of wages paid with respect to each separate pay period; The date(s) on which services were performed for the employer; The date(s) hired or rehired or returned to work after a temporary layoff; The date on which services were terminated and the cause of such termination; The time lost due to being unavailable for work; The character of the services performed by the employee; A division between covered and excluded employment when both such services appear in the same pay period; and The cash value of any remuneration paid instead of, or in addition to, cash wages. Payroll and employment records must be made available for audit at the employer s place of business during regular daytime business hours. When a business or any part of a business is discontinued, the employer must advise the director of the location of the records and make them available for audit in Ohio. Employment records must be maintained for a period of not less than five years. 15

18 Furnishing Information To The Department Section Employers must provide the department all employment information the department needs to administer the law. Employers who receive information request forms from the department must complete and return them to the department or explain in writing why they are unable to do so. Confidentiality Of Information Sections and ; ODJFS Rules and The law provides that all information requested by the department is for the exclusive use of the department in the discharge of its duties and is not available to the public. No information can be used in any court in any action other than in the administration of the Ohio unemployment compensation law. No employee of the department or any person who was employed by the department at any time, may reveal any information obtained while employed with the department. However, employer/employee information may be cross matched and/or exchanged with other specified state and federal agencies and programs for income and eligibility verification purposes, to identify fraud, waste and abuse, and to administer Sections to of the Ohio Revised Code. Additionally, wage, claim and employer information may be released to other governmental or educational entities as determined by the director for the purpose of providing and improving employment and training services. Final Reports Employers who dissolve, discontinue or dispose of their businesses are required to file final reports within 30 days of the date of such termination of liability. The final report shall consist of the current Quarterly Wage Detail and Quarterly Summary Report and the Report of Employer on Disposition of Business. Forms for making final reports may be obtained from any of the department s compliance offices, or you may deactivate your account online at Employer Audits Each year the records of many employers are audited. These audits may result in new determinations of liability or refund. If an employer is not satisfied with any determination of liability or refund, the employer may file a written request for reconsideration to the director of the Ohio Department of Job and Family Services within 30 days after the mailing of the determination. Following the director s reconsideration, an appeal to the Review Commission may be filed. Further appeal to the courts may be filed following the Review Commission s decision. 16

19 QUARTERLY WAGE AND TAX REPORTING PROVISIONS Employer Reporting Provisions Section ; ODJFS Rule At the end of every quarter, each liable employer is required to file one of the following reports: Contributing employers must file the Employer s Wage Detail Report and the Quarterly Summary Report. Nonprofit and public employers (reimbursing employers) must file the Reimbursing Employer s Wage Detail Report. Obtaining Additional Forms And Reporting Lost Or Damaged Reports For those employers with more than 15 employees and using the preprinted form provided, you may use copies of the new Wage Detail form provided. If a preprinted form is lost or damaged, employers may also use form (JFS 20125) to file quarterly wages and contributions. Employers can obtain forms at stm or by calling the Contribution section at (614) The appropriate filing forms are automatically mailed to registered employers at the end of each quarter. If the employer filed electronically the previous quarter, the employer will receive, instead of a form, a letter reminding them to file electronically. Please use the preprinted forms furnished. Each form contains two reports. The top portion of the form is the Wage Detail on which the employer should list individual wage data for all employees including the employee name, Social Security number, wages paid, the number of weeks during the quarter that the individual performed services or to which remuneration was allocated and the number of covered workers who worked during each month of the quarter. The Quarterly Summary report is contained on the lower portion of the form. The Quarterly Summary Report contains the total gross wages for the quarter, the taxable wages and the amount of contribution due. Employers who had no workers or paid no wages during a quarter are still required to check the appropriate blocks on the Wage Detail Report and file the reports by the due dates. To file your quarterly wage detail and quarterly summary report or quarterly reimbursing wage detail report online, please visit unemployment.ohio.gov. 17 Internet Filing Employers with fewer than 200 employees who have access to personal computers should report online using the Employer Resource Information Center (ERIC) at unemployment.ohio.gov or the Ohio Business Gateway at Employers who had no employees and paid no wages during a quarter can file their reports for that quarter via an Interactive Voice Response (IVR) telephone system by calling UC TAX ( ). If you have questions about online reporting or need assistance, contact the ERIC System Support Section at (614) , extension Magnetic Media Reporting Employers with more than 200 employees should report wage information by magnetic media using CD, DVD, or diskette. The ICESA format is the only acceptable format for Ohio s magnetic media reporting. Wage information reported on magnetic media will go directly into data processing files, reducing the possibility of errors in report handling. Permission to report by magnetic media must be granted in advance by the director and the CD, DVD, or diskette must be prepared using a format approved by ODJFS. Contact the central ODJFS office, Wage Record Employer Outreach Liaison, for a copy of the Ohio Employer s Guide to Magnetic Wage Reporting or to secure additional information.

20 FTP (file transfer protocol) reporting is also available for the submission of quarterly unemployment reports by large employers and their representatives. Please contact the Wage Record section s magnetic media unit at (614) for details. Telephone Filing Employers who had no employees and paid no wages during a quarter can file their reports for that quarter via an Interactive Voice Response (IVR) telephone system by calling UC TAX ( ). The call is free and no paper filing is required. To file by telephone, an employer must have its ODJFS employer number and federal employer identification number (FEIN). Both of these numbers appear on the quarterly report form mailed to the employer each quarter. If you have any questions about IVR telephone reporting or need assistance, contact the Contribution Section at (614) Timely Filing Section (B) and (C) As wage reports provide the basis for possible benefit claim awards, it is vital that all reports be filed promptly and as accurately as possible. Even if contributions cannot be paid on or before the due date, the Quarterly Wage Detail and Quarterly Summary Report must be mailed on time. When filing the reports, the return envelope enclosed with the reports should be used. Both reports must be filed no later than the last day of the first month following the close of the calendar quarter for which the report is being filed. If the due date falls on a weekend, then the reports are due the next business day. The following is the filing schedule for the quarterly reports: Report Covering Due Date Jan., Feb., March April 30 April, May, June July 31 July, Aug., Sept. Oct 31 Oct., Nov., Dec. Jan 31 Failure To File The Quarterly Wage Detail And Quarterly Summary Report Or Reimbursing Quarterly Wage Detail Report Sections , , and The forfeiture (penalty) for failing to file a quarterly wage detail and quarterly summary report containing all the required contribution and wage information when due is twentyfive hundredths of one percent (0.25 percent) of the total wages reported by the employer, provided that the forfeiture shall not be less than $50.00 nor more than $1, The director may waive forfeiture penalties if the employer provides written information showing good cause for the late filing and corrective action taken to prevent future late filings. Failure To Pay Contributions When Due Section Any contribution, payment in lieu of contribution, interest, forfeiture, or fine due from an employer shall, if not paid when due, bear interest at the annual rate of 14 percent compounded monthly on the aggregate receivable balance due. In computing interest, any fraction of a month shall be considered a full month. Interest can, in some cases, be waived. When requesting waiver of interest, the employer must make a written request for waiver of interest and meet all other statutory requirements within 30 days of the assessment. Other statutory requirements include furnishing all quarterly reports due, paying all amounts due, and furnishing information sufficient to show that the failure to make timely payment was due to circumstances beyond the control of the employer and a description of corrective action taken to prevent future instances of late payment. To pay amounts due on your account, please visit Providing accurate information on the reports, filing the wage information on time, and promptly paying taxes due will permit the department to maintain efficient handling of reports, payments, and applications for benefits. 18 Guidelines For Completing Reports The department uses an optical character recognition (OCR) and intelligent character recognition (ICR) system to record the information reported by employers on the

21 Wage Detail and the Quarterly Summary Report. Because the data is captured more cost effectively and accurately with the ICR/OCR technology, all documents will be processed via these methods. The quarterly Wage Detail and Employer s Quarterly Summary Report, and the Reimbursing Employer s Wage Detail Report, have been designed to accommodate this process. General Information WHO MUST FILE: Every employer liable under the Ohio Unemployment Compensation Law must complete and file the Employer s Wage Detail and the Employer s Quarterly Summary by the due date, file online using the Employer Resource Information Center (ERIC) at unemployment.ohio.gov or the Ohio Business Gateway at or file via magnetic media. In order to file your return on magnetic media, please review the acceptable file formats online at jfs.ohio.gov/ouc/uctax/magmedia.stm. Both reports should cover only employment for the employer and the quarter (or portion thereof) indicated. An employer who had no workers or paid no wages during the quarter must check the appropriate block, sign, and submit the Employer s Wage Detail and Quarterly Summary, use one of the electronic filing options or file by telephone by calling toll free UCTAX ( ) by the due date. Late or incomplete reports shall be subject to penalties. Report Covering Due Date Jan, Feb, March April 30 April, May, June July 31 July, Aug, Sept Oct 31 Oct, Nov, Dec Jan 31 MAGNETIC MEDIA: Employers with the capability to do so are encouraged to report wage information via CD, DVD, or diskette. In order to file on either media, authorization must be obtained in advance from the Ohio Department of Job and Family Services (ODJFS). EMPLOYMENT means service performed for wages under any contract of hire, written or oral, express or implied, including service performed into interstate commerce and service performed by an officer of a corporation without regard to whether such service is executive, managerial, or manual in nature, and without regard to whether such officer is a stockholder or a member of the board of directors of the corporation. (Ohio Revised Code, Section (B)(1)). COVERED WORKER/EMPLOYEE means any individual who performs services in employment unless such services are excluded by Ohio Revised Code, Section (B)(3). Covered employment shall not include employer s minor child, spouse, father or mother. TOTAL GROSS WAGES PAID means all remuneration including salaries, commissions, bonuses, and the cash value of any compensation other than cash, such as meals and lodging, house rent, and any other items of value given in exchange for services rendered in covered employment. Tips customarily received by an individual in the course of employment from persons other than employer, and which are accounted for by such individual to the employer, are wages, (Ohio Revised Code, Section (H)). TAXABLE WAGES means the first nine thousand dollars ($9,000) paid to each covered worker during the calendar year. Beginning January 1 of this year, or the date an employer becomes liable subsequent to January 1 of this year, each employee s wages must be reported and contributions paid on (1) the first $9,000 of each employee s wages; or (2) all wages earned by the employee, when the employee has earned less than $9,000 through December 31 of that year. (Ohio Revised Code, Section (G)). DEFINITIONS: The following definitions shall be used when completing the wage detail and quarterly summary report form: 19 CERTIFICATIONS/SIGNATURE The Employer s Wage Detail portion of the return must be signed by (1) the individual owner, (2) the

22 corporate president, treasurer or other principal officer, (3) a responsible and duly authorized member of the enterprise having knowledge of its affairs, or (4) other duly authorized agent of the employer. on our web site or using magnetic media, benefiting both the employer and ODJFS. If you prefer, you may submit your return by completing the Employer s Wage Detail and the Employer s Quarterly Summary form. MAILING INSTRUCTIONS Return the completed and signed original Wage Detail and Quarterly Summary with your payment in the envelope received with the return. EMPLOYER: Please verify the employer identification information printed on the report. If any information is incorrect, please complete the Change in Status/Address of Business (JFS66111A) and return it with your Wage Detail and Quarterly Summary. DO NOT MAKE CORRECTIONS DIRECTLY ON THE FRONT OF THE EMPLOYER S WAGE DETAIL. If reporting for more than 15 employees, please use one of the electronic filing options (online, magnetic media, FTP), to file your return. NOTE: In case of failure to file the Employer s Quarterly Summary and the Wage Detail within the time prescribed by law, there shall be assessed a forfeiture amounting to twentyfive one-hundredths of one percent (0.25%) of the total remuneration paid by the employer, provided such forfeiture shall not be less than fifty dollars nor more than one thousand dollars. Unemployment Compensation Quarterly Tax Return Wage Detail Instructions Please read all instructions before completing the return. For greater accuracy and faster processing, employers are encouraged to submit their return online using the Employer Resource Information Center (ERIC) at unemployment.ohio.gov or the Ohio Business Gateway at or via diskette, DVD or CD, or via FTP. In order to file your return on magnetic media, please review the acceptable file formats online at We strongly recommend entering the data 20 If submitting your return on the paper form, please hand print or machine print. If handprinted, use black ink CAPITAL LETTERS with clear character separation within the individual character boxes. The following examples are provided for machine print and hand-print: Example: Machine print: Last Name SSN Hand-print: Last Name SSN The return consists of two portions. Explanations of the fields and instructions for completing the WAGE DETAIL portion are: 1. Employer s Ohio employer account number. 2. Employer s Federal Employer Identification Number (FEIN) 3. Quarter of the year for which the return is being submitted. 4. Year for which the return is being submitted. 5. Employer name. 6. Enter the total number of wage detail pages being submitted for this employer s return. This field is right justified. 7. Enter the total number of employees from all pages related to this employer. This field is right justified. 8. Enter the total amount of wages for all pages being submitted for this employer s return. This field is right justified. 9. Enter the number of covered workers who worked during, or received pay for, any part of the pay period which includes the twelfth (12th) of the given month. If a pay period covers only one day, count the number of

23 workers for the workday on or nearest the twelfth. If you have more than one type of pay period which includes the twelfth, report the number of workers in all types. This field is right justified. Report all covered workers earning remuneration including workers who have already received wages in excess of the $9,000 taxable limit for the calendar year. Also include workers on paid vacation and on paid sick leave during the pay period which includes the twelfth of the month. This count should include all full-time and part-time workers. Do not report workers who earned no remuneration during the pay period because of labor-management disputes, unpaid vacation, unpaid sick leave, or lay-off. 10. Place an X in the No Workers box if no wages were paid this quarter. Place an X in the Out of State Wages box if taxable wages were reported to another state for any employee being reported on this return. 11. Enter the Social Security Number (SSN) of each covered employee to whom you paid wages during this quarter. This field is left justified. 12. Enter the name of each covered employee to whom you paid wages during this quarter. Enter the employee name in the following order: last name, first initial and middle initial. Last Name field is left justified. 13. Enter the amount of wages paid to each covered employee during the calendar quarter. This field is right justified. 14. Enter the total number of calendar weeks within the quarter in which an employee performed service and/or no service was performed, but to which remuneration was allocated. Exceptions apply to educational institutions. The total number of weeks cannot exceed the number of weeks in the calendar quarter. This field is right justified. 15. Enter the total number of employees for this page only. This field is right justified. 16. Enter the total wages for this page only. This field is right justified. 17. Enter the page number and number of wage detail pages contained in this return. This field is right justified. 21 CORRECTIONS/AMENDMENTS: Do not use any portion of the return to correct information previously submitted. To amend previously filed information, you must complete a Request to Amend Unemployment Compensation Quarterly Tax Return form (JFS20129). MAILING ADDRESSES: U.S. Postal Service Ohio Department of Job and Family Services P.O. Box Columbus, OH Overnight Delivery Ohio Department of Job and Family Services Office of UC Bureau of Tax Operations 4020 E Fifth Ave. Columbus, OH NOTICE TO EMPLOYERS: The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 requires that wage information which you provide to the Ohio Department of Job and Family Services be reported by ODJFS to (1) the Secretary of Health and Human Services for inclusion in the National Directory of New Hires, (2) the Secretary of Treasury for administration of the Earned Income Tax Credit Program, and (3) the Commissioner of Social Security for verification of social security numbers and other purposes. Unemployment Compensation Quarterly Tax Return Quarterly Summary The return consists of two portions. Instructions for the QUARTERLY SUMMARY portion are: 18. Enter the total wages paid. The amount reported must correspond with the amount reported in item #8 on the Wage Detail portion. Total wages paid means all remuneration including salaries, commissions, bonuses, and the cash value of any compensation other than cash, such as meals, lodging, house rent, and any other items of value given in exchange for services rendered in covered employment. Tips customarily received by an individual