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Summary of differences between federal and state regulations
Income tax withholding
The Oregon Department of Revenue is responsible for administering the state's withholding tax program.
Employers residing in or doing business in Oregon must withhold tax from all wages paid to employees who are residents of Oregon, even for services performed and wages earned outside of Oregon. Employers must also withhold tax from all wages earned by nonresident employees for services performed in Oregon.
The three components of Oregon's withholding tax law are:
- All Oregon employers must withhold tax from employee wages at the same time employees are paid.
- For Oregon employers, due dates for paying state withholding tax are the same as the due dates for making federal withholding tax and FICA tax deposits.
- All Oregon employers must file combined tax returns in addition to making the required payments.
Are you an employer responsible for filing and paying withholding tax? According to Oregon law, an employer is a person or an organization for whom a worker performs a service as an employee. The employer usually provides the tools and the place to work, and has the right to fire an employee. An employer may be an individual, corporation, partnership, estate, trust, association, joint venture, or other unincorporated organization.
Wages subject to Oregon withholding tax includes salaries, commissions, bonuses, wages, fees, or any other item of value paid to an individual for services as an employee. To determine the amount of Oregon tax to withhold use the tax tables prepared by the Oregon Department of Revenue.
Unemployment taxes
All states finance UC primarily through contributions from subject employers on the wages of their covered workers. In addition, three states (Alaska, New Jersey, and Pennsylvania) collect contributions from employees. These taxes are deposited by the state to its account in the UTF in the Federal Treasury, and are withdrawn as needed to pay benefits.
Many states have adopted a higher tax base than what is provided in FUTA. Hawaii's wage base is usually higher and changes periodically. In all states, an employer pays a tax on wages paid to each worker within a calendar year up to the amount specified in state law. In addition, most of the states provide an automatic adjustment of the wage base if federal law is amended to apply to a higher wage base than that specified under state law. As a result of the many variables in states taxable wage bases and rates, benefit formulas, and economic conditions, actual tax rates vary greatly among the states and among individual employers within a state.
Wages subject to unemployment tax in this state equal $27,000.
Minimum and maximum rates in this state are 1.2 and 5.4 %. Rates apply to experience rated employers only and do not include applicable surtaxes or penalties.
State
Contacts
Income tax withholding
Department of
Revenue
Unemployment taxes
Employment
Department
Regulations
Income tax withholding Collection of Tax Source on Wages: OAR 150.316.162 through 150.316.216 http://arcweb.sos.state.or.us/pages/rules/oars_100/oar_150/150_316.html
Unemployment taxes OAR 471-031 http://arcweb.sos.state.or.us/pages/rules/oars_400/oar_471/471_031.html
Federal
ContactsInternal Revenue Service
Regulations Title 26 Code of Federal Regulations, Internal Revenue