what wages are subject to the oregon statewide transit tax
- Wages of Oregon residents (regardless of where the piece of work is performed).
- Wages of nonresidents who perform services in Oregon.
The 2017 Oregon Legislature passed Business firm Nib (HB) 2017, which included the new statewide transit tax. The statewide transit tax is calculated based on the employee'south wages as divers in ORS 316.162. Employees who aren't bailiwick to regular income taxation withholding due to high exemptions, wages below the threshold for income taxation withholding, or other factorsare subject to statewide transit tax withholding.
- The definition of "wages" excludes amounts paid to certain types of employees and contained contractors (ORS 316.162).
- Self-employment income isn't subject field to this tax.
- This tax isn't related to the Lane or TriMet transit payroll taxes.
- Transit payroll taxes areimposed on the employer based on the amount of payroll. The statewide transit taxation isimposed on the wages of each employee, but the employer is responsible for withholding, reporting, and remitting the statewide transit tax.
- Revenue from the statewide transit tax volition go into the Statewide Transportation Improvement Fund to finance investments and improvements in public transportation services, except for those involving light rail.
The Oregon Department of Revenue has posted a list offrequently asked questions. Enter "statewide transit" in the search bar, and so uncheck the boxes except for "Statewide Transit Tax."
Employee Notification
You can share data well-nigh this new tax with your employees through letters on their paystubs. If you upshot paper paystubs, printable payroll stuffers have been provided. For electronic paystubs, consider adding—or asking your payroll service provider to add the post-obit language:
"Starting July i, 2018, y'all'll run across a new item on your paystub: the statewide transit tax. The tax is 1-tenth of one percent—or $one per $1,000—and your employer withholds it from your wages. Delight annotation, those exempt from income tax withholding, aren't exempt from withholding for this tax. Visit the Oregon Section of Transportation'southward website for information about the projects this revenue enhancement will support: www.oregon.gov/odot. For more information on the tax, become to the Department of Revenue's website at www.oregon.gov/dor."
For employers
Oregon employers are responsible for:
- Withholdingthe tax from employees' wages.
- Reportingtaxes withheld on a quarterly or annual render.
- Remittingtaxes withheld quarterly or annually.
- Reconcilingquarterly or annual reports on the annual reconciliation return.
If employers do not withhold this tax accordingly or file and pay on fourth dimension, you lot may be subject to penalties and interest. Penalties can be assessed for knowingly declining to deduct and withhold the revenue enhancement of $250 per employee, upwards to $25,000 for each tax catamenia, in addition to other penalties and interest authorized by state law.
Oregon residents who perform services exterior of Oregon can inquire their out-of-state employer to withhold the taxation from their wages as a courtesy—similar to income taxation withholding. However, Oregon can't require out-of-land employers to do so, equally they're exterior Oregon's taxing jurisdiction.
Agronomical and domestic employers may file returns and make payments for this tax annually, every bit they do with their income tax withholding.
Returns and payments
Any tax collected must be held in trust to be remitted and reported to the Department of Revenue on or before the last day of the month following the previous agenda quarter. For case, you demand to start withholding this taxation on July one, 2018, and then the first quarter yous'll study and remit for is third quarter 2018. This quarter ends on September 30, 2018, which means your return and payment are due by October 31, 2018.
In that location is no minimum threshold for filing the statewide transit tax return. Fifty-fifty if the amount of statewide transit taxation withholding is minimal, employers however need to file the return and remit the corporeality of tax withheld each quarter (unless you're an annual filer).
Agricultural and domestic employers can study and remit the statewide transit tax on either a quarterly or annual ground. If you're an annual filer, you must remit and report the statewide transit tax by the final day of the month following the finish of the calendar twelvemonth, or January 31.
Annual reconciliation reports are too due by January 31.
If the due date for your quarterly render and payment or almanac report falls on a weekend or vacation, the due date shifts to the next business concern day.
Forms
Transit tax forms are available now.Do not use the electric current income taxation withholding forms or payment coupons for this taxation.
Filing options and payments
Employers tin file returns and particular reports using electronic or paper options. Filing electronic returns and detail reports will crave setting up a Revenue Online account. For more information on how to set upwards an account, delight visitAcquirement Online. You can pay by greenbacks, check, money lodge, or EFT. Include the new payment coupon with your check or money order to ensure it is practical accordingly.
Cash payments are simply accepted at the primary office at 955 Center Street NE in Salem. Yous can walk in and make your payment anytime during normal business organization hours, or yous tin can call (503) 945-8050 to schedule an engagement.
W-2s and iWire filing
Where does the new statewide transit tax go reported on the Form Westward-two?
At that place isn't currently a requirement to study the statewide transit tax on the Form W-2. The Oregon Dept. of Revenue is analyzing the touch of adopting an administrative rule that requires statewide transit tax wages and withholding to be reported in Box 14 of the W-2. This prospective rule change would be part of the fall 2018 rulemaking process. The draft rule would be posted on the Oregon Dept. of Revenue website for review, and in that location would be the opportunity for public comment on the potential impacts of this requirement.
How will the new statewide transit tax be reported in iWire?
As with prior years, there will still be three divide W-2 filing options (transmission entry, spreadsheet import, and bulk file).
Manual entry—There will be ii new fields: "Statewide Transit Taxable Wages" and "Statewide Transit Tax Withheld." These fields will exist labeled as "Box xiv" in addition to the regular "Other" Box fourteen where other data tin can be entered.
Spreadsheet import—The updated spreadsheet template pick will take two new columns in the Form W-2 worksheet labeled "Box 14": "Statewide Transit Wage" and "Statewide Transit Withholding."
Majority file—The updated bulk file specifications are available under "File Specifications" on the iWire information folio.
Oregon residents working out-of-state
If yous're an Oregon resident who performs services exterior of Oregon, you can ask your employer to withhold the tax from your wages as a courtesy—similar to income revenue enhancement withholding. Even so, Oregon can't require out-of-state employers to do so, every bit they're outside Oregon's taxing jurisdiction.If your employer doesn't withhold the taxation for you lot, you're responsible for reporting and paying the revenue enhancement when you file your personal income tax return. There is no extension to the filing and payment deadline for the statewide transit tax. If you lot fail to report or pay on fourth dimension, you may exist discipline to penalties and interest.
Even so Pending
The process employers apply to file and pay is still existence finalized. The Oregon Dept. of Acquirement is still finalizing the process employers and payroll providers volition utilize to file and pay and will be updating their website over the next few months as it gets closer to the showtime date for submitting the statewide transit tax withholding to the Oregon Dept. of Revenue. Be sure to check this space regularly for new and updated information from Payroll Specialties, Inc. and Holloway Hr Consulting.
Source: Oregon Dept. of Revenue
Source: https://www.hhrconsulting.com/2018/06/oregons-new-statewide-transit-tax-starts-july-1-2018-and-all-employers-must-withhold/
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