Earlier this year, Ohio Governor Mike DeWine approved the 2026—2027 biennial budget (H.B. 96), which implements a new employer state unemployment insurance (SUI) surcharge of 0.15% on taxable wages up to $9,000 per employee, per year.

This SUI surcharge, termed the Technology and Customer Service Fee (TCSF), is effective for years 2026 and 2027 and is paid quarterly together with the base SUI tax, which for 2025, ranges from 0.4% to 10.1% on wages up to $9,000 per employee.

According to a notice the Ohio Department of Job & Family Services (Department) emailed to employers, the TCSF will be used to fund:

• A modernized unemployment benefit system, with cloud-based technology, user-friendly notifications and streamlined processes for both employers and claimants, replacing a 20-year-old legacy system
• More self-service tools, and improved communications, allowing employers to more easily manage their claims
• Improved cybersecurity measures, with fraud tools and advanced data analytics to protect data and ensure a safe and secure digital environment

Ernst & Young insights

Because the TCSF will not be placed in trust for the payment of SUI benefits, it is not considered a SUI contribution for Form 940 reporting purposes.