13 June 2019 Eugene, Oregon ordinance calls for payroll tax paid by employers and employees The Eugene, Oregon City Council announced it passed an ordinance implementing a new payroll tax paid by employers and most employees to be used for "sustainable funding for city-wide public safety efforts." Unless approved by voters, the payroll tax will sunset in 2028. Eugene's Mayor, Lucy Vinis, supports the measure. The City will be working with the Oregon Department of Revenue, which currently administers the state and local transit district payroll taxes, to implement the new payroll tax by July 1, 2020. The payroll tax would apply to both private and public sector employees but does not apply to visitors, city residents employed elsewhere, retirees or the unemployed. It was no easy task getting the Eugene Council to agree on a new payroll tax, and consequently, several necessary concessions make it one of the most complex. The employer portion of the tax varies based on the annual gross payroll of the employer and number of employees. The proposed rate for an employer with two or fewer employees and a gross annual payroll of up to $100,000 is 0.0015 of taxable wages up to $13 per month. The proposed rate for an employer with more than two employees and gross annual payroll of up to $500,00 is 0.0021 up to $88 per month. Employees also must pay the tax, but there is an exemption for employees paid at minimum wage and a reduced rate for those employees earning from $12.01 to $15.00 per hour. The Eugene City Council has released frequently asked questions here.
Document ID: 2019-1082 | |||||||
