2018 Oregon Transit Tax – what do employers need to do?
By Kylie Artz, Shared Services Manager, Trüpp.
Understand the basics of the Transit Tax.
Coverage of the Oregon Transit Tax extends to wages earned by an Oregon resident or wages earned by a non-resident for work performed in the State of Oregon that are paid to an employee on a check date after July 1, 2018. This tax is employee paid, but employers must withhold 0.10% of subject wages and transmit to the State of Oregon with quarterly tax filings. It’s important to note that this tax is separate from the Lane or TriMet Transit taxes already in place.
Check with your payroll provider.
Verify with your payroll provider that the necessary setup will be available as of July 1st for the Transit Tax. You will also need to confirm any actions you will be required to take to apply the new Transit Tax to the appropriate employees. For example, some payroll providers will automatically apply the new tax to any employees with an Oregon address, while others will require you to either tell them who to apply the tax to or make the changes yourself in their online payroll portal. It will also be important to understand how to apply this tax to employees that do not live in Oregon, but work in Oregon at least part of the time.
Communicate to your employees.
While most employees may not notice the additional amount of tax deducted from their pay check, it may be a good idea to provide some basic communication to affected employees so that they’re aware of the change.