FAQ: New Oregon Transit Tax

FAQ: New Oregon Transit Tax

Frequently Asked Questions about the New Oregon Transit Tax Does my employee who lives out of state still have to pay this tax? The new statewide transit tax requires all employers to withhold, report, and remit one-tenth of one percent (0.001) of wages paid to their employees to the Department of Revenue. The tax is withheld from the wages of: Oregon residents (regardless of where the work is performed) Nonresidents who perform services in Oregon   Does the statewide transit tax affect wage garnishments calculations? Yes, the statewide transit tax must be deducted from gross wages to determine disposable earnings for wage garnishments.   How does the department plan to notify employers and employees about this new statewide transit tax before it starts in July? The ODR is sending a letter explaining the requirements of the new tax to each employer registered to file and pay income tax withholding in our system. This initial letter will include information about: The statewide transit tax in general Reporting and paying the tax Important due dates How to register for Revenue Online to report and pay taxes electronically Additionally, the department is continually updating its website with new information related to complying with the statewide transit tax. Please check the website regularly for updated information: http://www.oregon.gov/DOR/programs/businesses/Pages/statewide-transit-tax.aspx   If a domestic worker is under the limit for filing a W-2 (a house cleaner for example), does the employer still have to withhold the statewide transit tax? If the domestic worker’s wages don’t meet the exemption in OAR 150-316-0237(3) or the general exemption in ORS 316.162(2)(c), the employer is required to file statewide transit tax...
Special Year-End Payroll Considerations for 2015

Special Year-End Payroll Considerations for 2015

By Claudia Womack, Small Business Advisor It is that time of the year to be thinking of processing your Special YE Payrolls for 2015.  Remember these payrolls must be reported as W2 wages for 2015. The Special YE Payrolls are: ·         Personal Auto Wages ·         S-Corporations Health Insurance ·         Year-End Bonuses ·         Gifts ($25.00 and over) ·         Maxing retirement deferrals for officers, owners, etc. Please review the following information and if any of the Special YE Payrolls pertains to you and your business, please be sure to process a payroll before 12/31/15. PERSONAL USAGE OF BUSINESS VEHICLES The personal usage to commute between work and home with a company owned or leased vehicle by an employee (including corporate shareholder/officers) is classified as payroll compensation and must be reported on the employee’s W2.  The personal auto usage compensation is subjected to FUTA, SUTA, LTD, Federal W/H, State W/H, and FICA. This auto payroll should be recorded on the employee’s W2 in box 14. We are available to help with the personal usage calculation, please send us the following information and we will be happy to do it for you.  Remember, if an employee drove more than one vehicle in 2015, then we need the information below for each vehicle that was driven by the employee. 1.    Vehicle make, type and year 2.    Total 2015 mileage and ending mileage for each vehicle 3.    2015 total personal mileage or percentage of total usage 4.    If an employee’s gross wage exceeds the Social Security limit, we will need the employee’s 2015 Social Security wages to determine Social Security tax for calculating the personal...