STEP 2: List the wages, salaries and other compensation paid to W-2 employees for services performed. Do not include compensation from which taxes were not required to be withheld under Ohio Revised Code §718.011. Excluded wages are to be listed on Line 8 below. Do not include amounts paid for sub-contracted labor or amounts paid for leased employees.
STEP 3: List the gross receipts from sales made or services performed.
STEP 4: Add the percentages from Steps 1-3.
STEP 5: Divide Step 4 by the number of factors used to obtain the average percentage. (For example, if all three factors are used, divide by 3. If -0- wages were deducted on the federal return (the wage factor would not be utilized) and you would divide by 2.)
Line 8: List the compensation for which taxes were not required to be withheld under Ohio Revised Code Section 718.011 and have been excluded from Step 2, Columns A and B.
Line 9: If services are provided by leased employees, attach a statement to your return listing the name, address and federal identification number of the leasing company.