Andrew T Lopez
Oregon Statewide Transit Tax starts July 1, 2018
Are you ready for the new Oregon withholding tax? If you have employees who are residents of Oregon or are non-residents that perform work within the state of Oregon, you must start withholding a mandatory Statewide Transit Tax of one-tenth of 1 percent (or .001) from their wages.
All wages as described in Oregon Revenue Statute 316.162 are subject to the tax even if the employee has high exemptions, claims "exempt" from withholding, or has wages below the threshold for income tax withholding. Payments to Independent Contractors and Self-employment income are not subject to the new Statewide Transit Tax.
Don't get confused with the transit payroll taxes for Lane or TriMet which are employer taxes based on the amount of payroll. The new Oregon Statewide Transit Tax is based on employee wages and must be withheld from the employee.
For more information please contact Forensic Payroll at firstname.lastname@example.org or the Oregon website at https://www.oregon.gov/DOR/programs/businesses/Pages/statewide-transit-tax.aspx