The Eugene, Oregon, payroll tax will not go into effect until January 1, 2021. It was previously scheduled to take effect July 1, 2020. APA’s Government Relations Task Force (GRTF) State and Local Topics (SALT) Subcommittee had advised the city that software developers and payroll departments needed adequate time to program and prepare for new payroll taxes.
FAQs with more information about the delay and the payroll tax, including reporting requirements, are available on the city’s website.
APA Requested Time for Testing, Training
In comments on proposed regulations, the SALT Subcommittee advised the city that software developers and payroll departments generally require at least six months from the date of final administrative rules to upgrade and test software and train employees on the rules and software changes. In its response, the Finance Division acknowledged and agreed with this point and said the delay to January 1, 2021, will allow more time for programming by payroll service vendors, the establishment of an online tax administration service through MUNIRevs, and taxpayer outreach.
Interested in more state and local payroll coverage? APA’s PayState Update eNewsletter is perfect for you.
Lia Coniglio, Esq., is Managing Editor of PayState Update and Manager of State Payroll Information Resources for the APA.
Mavanee Anderson, Esq., is Editor of PayState Update and Editor of Payroll Information Resources for the APA