January 23, 2019 Oregon releases 2019 income tax withholding formulas/tables and new state Form W–4; 2018 Form W–2 filing reminders The Oregon Department of Revenue has released to its website the 2019 withholding tax formulas and wage–bracket withholding tables, effective with wages paid on or after January 1, 2019. (Oregon Department of Revenue website.) Standard deductions and transit rates for 2019 2019 Standard deductions:
2019 Transit rates:
The updated Oregon Withholding Tax Formulas reflect changes to the inflation adjusted amounts (such as exemption credit, standard deduction, and federal tax subtractions). Employees may notice a change in the amount of Oregon tax withheld. All personal exemption credits for taxpayers with federal adjusted gross income of more than $100,000 for a single or married filing separately return, or more than $200,000 for a married filing joint or head of household return are eliminated, effective January 1, 2014. (2013 HB 3601.) Supplemental withholding rate for 2019 Employers may continue to use a 9.0% flat rate to figure withholding on 2019 supplemental wages that are paid at a different time than an employee's regular payday. Supplemental wages include bonuses, overtime pay, commissions, or any other form of payment received in addition to the employee's regular pay. For more information on Oregon income tax withholding and transit taxes, see the Department's website. New Oregon Form OR–W–4 released The Department released for calendar year 2019 new state Form OR–W–4, Oregon Employee's Withholding Allowance Certificate, in response to federal changes under the TCJA. Employers are not required to provide this new form to employees, but it is strongly recommended by the Department. (Tax Alert 2018–1899) Previously, the Department used the federal Form W–4 for state income tax withholding purposes; however, with the implementation of the TCJA, the agency determined a state–specific form would best suit Oregon taxpayer needs. Employees with an existing "Oregon only" federal Form W–4 do not need to submit Form OR–W–4 or change their allowances for Oregon unless they revise their federal Form W–4 after January 1, 2019. In addition, employees may still submit a separate federal Form W–4 for state withholding purposes, rather than Form OR–W–4, by writing "For Oregon only" at the top of the W–4. The Department recommends that employers encourage their employees — particularly those who submitted a federal Form W–4 and don't have a separate form for their Oregon withholding — to make sure their amount of withholding covers their estimated Oregon personal income tax liability. The Department released an online withholding calculator to make determining the appropriate amount of Oregon withholding easier. Oregon employers are required to send a copy of Oregon Form OR–W–4 and/or federal Form W–4 to the Department within 20 days of receiving them if the employee claims:
If a hardcopy of the allowance certificates is unavailable, provide a report listing the employee name, Social Security number, current address, status and number of allowances or exemption for both federal and state purposes, date the certificates signed or processed, and employer federal identification number. These copies or reports should be sent to: W–4 Project Manager Oregon Department of Revenue PO Box 14560 Salem OR 97309 (Oregon Administrative Rule (OAR) 150–316–0290.) For more information on new Form OR–W–4, see the Department's Publication 150–211–602, W–4 Information for Employers. Oregon 2018 Forms W–2 due by January 31, 2019 Calendar year 2018 Forms W–2 and 1099–MISC with nonemployee compensation in box 7 must be filed with the Department no later than January 31, 2019. The 2018 Form WR, Oregon Annual Withholding Tax Reconciliation Report, must also be filed by January 31, 2019. All employers and payroll service providers are required to 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. The Department may assess penalties of up to $25,000 for not filing electronically, filing incorrect Forms W–2 or 1099, or filing late. Other Forms 1099–MISC, 1099–R, 1099–G, and W–2G are due by March 31, 2019. ———————————————
——————————————— EY Payroll News Flash
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