OSPS E-News ~ PEBB Communication RE: Taxable Benefit for Adult Children

[Announcements from OSPS to the users of the Oregon State Payroll Application]

PEBB sent e-mail communication last night to employees who have a child
aged 19 or over enrolled in PEBB benefits.  See attached.

PEBB states, "Your payroll will add the value of this coverage...".

OSPS will add the amounts given to us by PEBB to the affected employee's
Oregon taxable income.  This will be on the employee's W-2.  Agency
payroll does not need to do anything for this to happen.  At the moment
we do not have a finalized listing from PEBB sorted by agency.  A list
will be provided to agency payroll whether that comes to you through the
PEBB.Benefits system or from OSPS.  

Please be aware that the Department of Revenue has a "reconnect bill"
for Legislative action during the 2011 session that, if passed, would
eliminate the taxability of the insurance coverage retroactive to 2010
and going forward.  Should the Legislature reconnect the Oregon tax law
to the federal law, OSPS will issue corrected W-2s to reduce the Oregon
taxable income previously reported.  

Affected employees may wish to delay filing their 2010 Oregon income tax
return until this has been resolved.  We will prepare communication
about this to be distributed to affected employees with their 2010 W-2.


This topic is on the agenda for the OSPS Payroll Forum scheduled for
Friday 12/17/2010.  OSPS will provide an update on this project and
answer questions to the degree that we can.  

As always, we recommend that employees consult with their tax
professional for answers to their individual tax questions.


Oregon Statewide Payroll Services Staff
DAS State Controller's Division
Phone:  (503)378-6777     Fax:  (503)378-3518
OSPS Help Desk:  mailto:OSPS.Help at das.state.or.us

Visit Our Online Resource Center: http://oregon.gov/DAS/SCD/OSPS 

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