July 30, 2020
Oregon won't assert nexus for corporate excise and income tax for teleworkers in the state temporarily due to COIVD-19
The Oregon Department of Revenue announced on itsCOVID-19 Tax Relief Options website that for purposes of its state corporate excise/income tax, employees teleworking within the state won't be considered a relevant factor in its nexus determination provided these employees regularly perform services outside of Oregon.
This relief provision is effective March 8, 2020 through November 1, 2020.
Income tax withholding
The Department's relief does not currently extend to the state income tax withholding requirement. Accordingly, the usual requirements apply.
- Resident income tax withholding. Resident income tax withholding is required from wages, regardless of the state in which those wages were earned. Employers that pay wages to Oregon residents may be relieved of the duty to withhold where it can be shown to the satisfaction of the Department that each employee will receive $300.00 or less from that employer in a calendar year. (ORS 316.167 or OAR 150-316-0255).
- Nonresident income tax withholding. Nonresident income tax applies to wages paid for services provided within Oregon with the exception that if the earnings for the year will be less than the standard deduction for the employee's filing status, nonresident income tax is not required. (Nonresident employees earning over the standard deduction are required to file an Oregon personal income tax return.) (Oregon Employer's Guide, pg. 18.)
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