28 December 2017 Oregon to delay release of its 2018 income tax withholding tables The Oregon Department of Revenue announced that, due to the enactment of the federal Tax Cuts and Jobs Act (the tax reform law), it will delay its issuance of the 2018 income tax withholding tables. According to the Department's 2018 payroll withholding tax information website, the 2018 formulas and tables are "to be updated when the 2018 federal formulas and tables are released." Employers should continue to use the 2017 formulas and tables for wages paid on or after January 1, 2018, until such time as the 2018 income tax withholding tables are available. The supplemental withholding rate for 2017 of 9.0%, used to figure withholding on supplemental wages that are paid at a different time than an employee's regular payday, should continue to be used until the 2018 income tax withholding tables are released. Supplemental wages include bonuses, overtime pay, commissions or any other form of payment received in addition to the employee's regular pay. Legislation enacted in 2013 eliminates all personal exemption credits for taxpayers with federal adjusted gross income of $100,000 or more for single or married filing separately return, or $200,000 or more for married filing joint or head of household return effective January 1, 2014. (HB 3601, Chapter 5, signed by the governor on October 8, 2013.) Calendar-year Forms W-2 and 1099-MISC with nonemployee compensation in box 7 must be filed with the Department no later than January 31, 2018. The 2017 Form WR, Oregon Annual Withholding Tax Reconciliation Report, must also be filed by January 31, 2018. All employers and payroll service providers must file Form W-2/1099 information electronically over the Department's iWire system in a manner consistent with the electronic filing specifications outlined by the SSA in Publication EFW2. Other Forms 1099-MISC, 1099-R, 1099-G, and W-2G are due by March 31, 2018. New for tax year 2017 is the requirement that all Forms 1099-MISC, 1099-G, 1099-R, or W-2G must be filed electronically. The previous threshold was 10 or more of these forms. For more information, see the Department's website, call the iWire team at +1 503 945 8127 or send an email to iwire.dor@oregon.gov. The IRS also announced this month that it will delay release of its 2018 federal income tax withholding tables and related guidance until January 2018, with employer implementation requested in February 2018. Oregon is one of many states that updates its income tax withholding tables each year. Several of these states have already released their 2018 income tax withholding tables. We will issue an update in the first week of January with a summary of all the states that have revised their income tax withholding tables for 2018 and those, like Oregon, that anticipate a delay in their 2018 update. Document ID: 2017-2219 |
