The Oregon Department of Revenue (DOR) is urging employees to check their wage withholding before the end of 2018. It is also alerting employers and employees that it will release an Oregon-specific Form W-4 for 2019 [DOR, News Release, 8-15-18].
State Withholding Worksheet
The DOR recently updated its withholding calculation worksheet, Form 150-206-643, Worksheet OR-WW (rev. 8-18), to reflect federal changes. This worksheet provides employees with a way to check their withholding so they can make necessary changes, including by updating withholding allowances and opting to have additional taxes withheld from upcoming paychecks. Making these changes before the end of the year should help employees reduce the amount of taxes owed on 2018 personal income tax returns.
New State-Specific Form Coming in 2019
The DOR is developing a new state-specific Form W-4 to be released in 2019. This will help employees who currently use separate Forms W-4 for federal and Oregon income tax withholding purposes. With the new state-specific form, employees will no longer need to complete a separate federal Form W-4 and write “For Oregon only” at the top to designate state withholding. It will also give Oregon more flexibility in adapting to future federal tax law changes without burdening employees or employers.
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