Effective July 1, 2018, employers must begin withholding the new 0.1% Oregon statewide transit tax from the wages of Oregon residents (regardless of where the work is performed, provided the employer has nexus) and the wages of nonresidents who perform services in Oregon.
Employers are responsible for: withholding the tax from employee wages, reporting the taxes withheld on a quarterly or annual return, remitting the taxes withheld quarterly or annually, and reconciling quarterly or annual reports on the annual reconciliation return.
The Oregon Department of Revenue can assess penalties of $250 per employee on employers for knowingly failing to deduct and withhold the tax (up to $25,000 for each tax period).
Forms for the new tax are now available. The forms include:
- Form OR-STT-1, Oregon Quarterly Statewide Transit Tax Withholding Return
- Form OR-STT-2, Statewide Transit Tax Employee Detail Report
- Form OR-STT-A, Oregon Annual Statewide Transit Tax Withholding Return
- Form OR-STT-V, Oregon Statewide Transit Tax Quarterly Payment Voucher and Instructions
Note that 2018 Form OR-WR, Oregon Annual Withholding Tax Reconciliation Report, is also available (due January 31, 2019), and it will require the statewide transit tax to be reported and reconciled.
Read PayState Update for the latest state and local payroll compliance news.
