19 April 2016 Oregon DOR explains reporting of withheld employee income tax on quarterly return In the March edition of Payroll Tax News, the Oregon Department of Revenue (DOR) provided additional details on the new requirement that employers report the income tax withheld from each employee on Form 132, Unemployment Insurance Employee Detail Report. The new reporting applies in thefirst quarter 2016, due May 2, 2016. As we reported in Tax Alert 2016-35), to assist in preventing individual income tax fraud, employers will be required to report the income tax withheld from each employee in new Column 6 of the Form 132. The new reporting requirement only applies to employees the employer would normally report on Form 132. The Department confirms that the new employee detail of income tax withholding information will be in addition to, not a replacement for, the electronic Form W-2 reporting requirement. According to an Oregon Employment Department representative and the electronic reporting webpage, the Department is currently testing and expected to soon release the 2016 update to the OTTER electronic reporting system to include the additional reporting data field. According to the representative, the 2016 Combined Payroll Tax Report, that includes individualized Forms 132, was mailed to employers on March 31, 2016. Because there are several ways to report wage and withholding data, the DOR is providing the following chart with reporting instructions for each method: Filing Methods | Bulk Filing | One additional data field. The data field is added to the end of the current Form 132 file. It will start in position 74 and will be six (6) characters (blanks or all numeric). This new data field will: — Capture the state withholding tax at the individual level for DOR. — Include whole dollars ignoring the cents (round to the nearest whole dollar). — Only be included if the employee is subject to Oregon unemployment insurance. | Setron | One additional data field. This data field will be six (6) characters (blanks or all numeric). This new data field will: — Capture the state withholding tax at the individual level for DOR. — Include whole dollars ignoring the cents (round to the nearest whole dollar). — Only be included if the employee is subject to Oregon unemployment insurance. | OPRS | The OPRS application allows for manual creation of the report or automated electronic import of the data. To create a report manually or to import using Excel, ASCII — Fixed Width or ASCII — Delimited, follow these guidelines. One additional data field, This data field will be six (6) characters (blanks or all numeric). This new data field will: — Capture the state withholding tax at the individual level for DOR. — Include whole dollars ignoring the cents (round to the nearest whole dollar). — Only be included if the employee is subject to Oregon unemployment insurance EXCEPTION NOTE: To import data using the federal format EFW2 follow these guidelines. Please refer to the Social Security Administration's (SSA) publication for the RS EFW2 file layout. Page 51 describes the positions that have been designated for State Income Tax Withheld, positions 287-297, on the EFW2 file. The positions referred to in the SSA document are decimal, right justified, zero fill. Fill this field in as it is described and defined by the federal guidelines. The OPRS program will perform data adjustments to remove cents and make the number conform to six (6) characters (blank or all numeric) | OTTER | The OTTER application allows for manual creation of the report or automated electronic import of the data. To create a report manually or to import using Excel, ASCII — Fixed Width or ASCII — Delimited follow these guidelines. One additional data field. This data field will be six (6) characters (blanks or all numeric). This new data field will: — Capture the state withholding tax at the individual level for DOR. — Include whole dollars ignoring the cents (round to the nearest whole dollar). — Only be included if the employee is subject to Oregon unemployment insurance EXCEPTION NOTE: To import data using the federal format EFW2 follow these guidelines. Please refer to the Social Security Administration's (SSA) publication for the RS EFW2 file layout. Page 51 describes the positions that have been designated for State Income Tax Withheld, positions 287-297, on the EFW2 file. The positions referred to in the SSA document are decimal, right justified, zero fill. Fill this field in as it is described and defined by the federal guidelines. The OTTER program will perform data adjustments to remove cents and make the number conform to six (6) characters (blank or all numeric) | Paper | One additional data field. This data field will be six (6) characters (blanks or all numeric). This new data field will: — Capture the state withholding tax at the individual level for DOR. — Include whole dollars ignoring the cents (round to the nearest whole dollar). — Only be included if the employee is subject to Oregon unemployment insurance EXCEPTION NOTE: When reporting the new state withholding data, please recognize that the field for this particular data element does not include any placeholders for cents. Round the taxes withheld to the nearest dollar and only report whole dollar amounts | Magnetic Media | To file using the federal format EFW2 follow these guidelines. Please refer to the Social Security Administration's (SSA) publication for the RS EFW2 file layout. Page 51 describes the positions that have been designated for State Income Tax Withheld, positions 287-297, on the EFW2 file. The positions referred to in the SSA document are decimal, right justified, zero fill. Fill this field in as it is described and defined by the federal guidelines |
For questions about reporting this additional data, contact the DOR at +1 503 945 8100, extension 4, option 4, or the Employment Department at +1 503 947 1544, option 6. Employers may also send questions by email to OED_Taxinfo_User@oregon.gov. Contact Information
For additional information concerning this Alert, please contact:
| Employment Tax Services Group | | • Debera Salam | (713) 750-1591 |
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Other Contacts| Employment Tax Services Group | | • Gregory Carver | (214) 969-8377 | | • Richard Ferrari | (212) 773-5714 | | • Kenneth Hausser | (732) 516-4558 | | • Kristie Lowery | (704) 331-1884 | | • Christina Peters | (614) 232-7112 | | • Debbie Spyker | (720) 931-4321 |
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Document ID: 2016-0711 |
