In a letter dated Nov. 7, Ohio Department of Job and Family Services Director Matt Damschroder explained a new fee that employers will be charged on their quarterly unemployment insurance tax rate.
Included within Ohio’s recently passed biennial budget (House Bill 96) was the inclusion of a fee that equates to a 0.15 percent quarterly increase in the unemployment insurance tax rate. It will be imposed between January 2026 and December 2027.
According to the letter, the fee applies to the first $9,000 of wages paid to each employee. The fee will be paid in conjunction with quarterly unemployment insurance taxes.
The additional funds collected will be invested into three key areas:
- Modernize the Unemployment Benefit System: ODJFS wants to replace its 20-year-old legacy system with a new cloud-based technology that offers user-friendly notifications and a streamlined process for both employers and claimants.
- Improved user experience: The upgrades will include additional self-service tools and improved communications. This will allow employers to more easily manage their claims.
- Improved cybersecurity: The new system will use fraud tools and advanced data analytics to protect data and ensure a safe and secure digital environment.
A multi-year project, work to install the new system, which will be called Buckeye UI, began in January and is expected to wrap up at the end of 2026. The existing unemployment tax system, called SOURCE, is not a part of this project.
According to the letter, ODJFS will update employers in the coming months on how to use the new system for unemployment benefits and appeals.
Anyone with questions is urged to call 614-466-2319.
