Effective April 9, 2025, the Ohio Pay Stub Protection Act requires employers to provide employees with detailed earnings and deductions statements for each pay period. If your institution outsources payroll, then the payroll provider’s standard pay stub likely covers these requirements. Still, it is important to be aware of the changes and verify that your institution’s payroll complies with this guidance.
Under the new law, employers must furnish either a written or electronic pay statement containing the following information:
- Employee’s name and address
- Employer’s name
- Total gross wages earned during the pay period
- Total net wages paid for the pay period
- A listing of the amount and purpose of each addition to or deduction from the wages paid to the employee during the pay period
- Date of payment and the pay period covered
For hourly employees, the following additional details are required:
- Total number of hours worked in the pay period
- Hourly wage rate
- Number of hours worked beyond 40 in a workweek
Failure to Comply
An employee who does not receive the statement or access to the statement at the time required under the act must make a written request to the employee’s employer to receive the statement. The employer must provide the employee with the statement no later than 10 days after receiving the request. If an employee does not receive the requested statement within the 10-day period, the employee may submit a report of the violation to the director of the Ohio Department of Commerce.
If, on receiving the report, the director determines that there are reasonable grounds to believe that an employer violated the act, the director must issue a written notice to the employer. On receiving the notice, the employer must immediately post the notice or a copy in a conspicuous place on the employer’s premises. The employer must keep the notice posted for 10 days.
Higher Education Considerations
Higher education institutions in Ohio should keep in mind several specific items when determining compliance with the Ohio Pay Stub Protection Act.
Pay Stub Compliance
- Provide electronic or paper pay stubs with clear breakdowns of gross wages, deductions, and net pay. This also applies to remote employees working outside of Ohio.
- Ensure timely payroll processing and clear documentation of any deductions, e.g., Ohio Public Employees Retirement System (OPERS), housing, or meal plans.
- Facilitate ongoing access to pay records, even after students leave employment.
International Student Considerations
- Comply with Federal Insurance Contributions Act (FICA) tax exemptions for eligible F-1 and J-1 visa holders.
- Reflect tax treaty benefits or special withholdings accurately.
Record-Keeping & Dispute Resolution
- Maintain accurate payroll records for audits and employee disputes.
- Provide students with guidance on resolving pay discrepancies and understanding their pay stubs.
Legislative Updates & Compliance
- Stay updated on Ohio wage laws and any amendments impacting student employees.
- Make sure institutional payroll policies align with state and federal regulations.
How Forvis Mazars Can Help
We understand the complexities that new legislation can introduce to your business operations. Our team is ready to assist you in navigating these changes, helping to make sure your payroll processes are compliant with new requirements. If you have any questions or need guidance on implementing these changes, please reach out to one of our professionals at Forvis Mazars.