The Ohio Department of Taxation has issued new guidance for Tax Year 2026 that manufacturers should factor into payroll, compliance and investment planning. Effective Jan. 1, the withholding rate on bonus and supplemental compensation drops to 2.75%, aligning with Ohio’s flat income tax rate and simplifying payroll administration while modestly increasing employee take-home pay. The guidance also confirms a $750 monthly cap on the vendor timely filing discount, a change that will affect manufacturers with high-volume sales tax filings. Updated school district income tax rates will require payroll adjustments, and newly effective capital gains deductions for business and venture sales could influence long-term investment and succession planning. Manufacturers should review systems now to ensure accurate implementation and identify opportunities to improve cash flow. 1/14/2026