Starting April 9th, 2025, Ohio employers must provide detailed pay statements to their employees under Ohio House Bill 106, known as the Pay Stub Protection Act (PSPA). Previously, Ohio was one of only nine states that did not require employers to issue pay stubs. Now, Ohio business owners must familiarize themselves with this legislation and its requirements.
What is the Pay Stub Protection Act?
The PSPA is a new Ohio-based law that requires employers to provide their employees with a detailed pay stub for every paycheck they receive. State Representative Dontavius Jarrells states, “With this new law, every hardworking Ohioan will have the documentation they need to verify their wages, hours, and deductions without the burden of legal battles.” This law will help ensure pay transparency across the state while emphasizing the importance of employer accountability and workplace fairness.
Whether electronic or paper, the pay stub for salaried employees must include the following information:
- The employer’s name
- The employee’s name
- The employee’s address
- The employee’s total gross wages earned during the pay period
- The employee’s total net wages for the pay period
- A listing of the amount and purpose of each addition to or deduction from the employee’s wages during the pay period
- The date the employee was paid and the pay period covered by that payment
As for hourly employees, their pay stub must include:
- The employer’s name
- The employee’s name
- The employee’s address
- The total number of hours the employee worked in that pay period
- The employee’s hourly wage rate
- The employee’s overtime hours
PSPA Violation
If an employer fails to provide an employee with a pay stub, the employee can request a copy from their employer. If the pay stub is still not received within 10 days, the employee can report the issue to the Department of Commerce. The Director of Commerce may then issue a notice to the employer for the violation, which can lead to significant monetary penalties or fines.
How GMS Can Help Ohio Employers with PSPA
Managing payroll and compliance can be daunting for business owners. That’s why many businesses partner with professional employer organizations (PEOs) like Group Management Services (GMS). With our automated payroll software, GMS Connect employees can easily access all their payroll information, including W-2s, tax deductions, pay stubs, and more.
Our payroll team is available to assist with any questions regarding deductions or wage discrepancies, ensuring a smooth payroll process. GMS also helps business owners stay on top of changing rules and regulations, ensuring their compliance and reducing their risk of violations or monetary penalties.
If you’re an Ohio-based business that needs assistance with PSPA compliance or payroll automation, contact us today!