OSPS E-News ~ FW: Statewide transit tax - UPDATE

Mon Aug 13 10:42:35 PDT 2018

UPDATE 8/13/18:  Due to recent reporting requirements from Department of Revenue there has been a change to the statewide transit tax's setup in OSPA.  DAS OSPS implemented a change prior to July run 2 to look for the pay period in which the system will be calculating this tax on.  If it falls prior to the 07/31/18 pay period then the transit tax will not calculate.  This is a change to what was said previously regarding correctives.  Now no taxes will be assessed on correctives prior to 07/31/18.  That includes labor cost changes or leave changes.

We will also be setting correctives for anyone who had a corrective on July run 1.  By doing so, anyone who had the transit tax assessed on those July run 1 correctives will receive a credit for the transit tax previously taken out.  The current plan is to do this on August run 1.

My apologies for these changes.  This new payroll tax and the reporting requirements is evolving and we are doing are best to meet those requirements.

Seth Lewis
503-373-0198

From: OSPS-News [mailto:osps-news-bounces at listsmart.osl.state.or.us] On Behalf Of Announcements from OSPS to the users of the Oregon State Payroll Application
Sent: Friday, June 01, 2018 3:28 PM
To: OSPS News (osps-news at listsmart.osl.state.or.us) <osps-news at listsmart.osl.state.or.us>
Subject: OSPS E-News ~ FW: Statewide transit tax - UPDATE

UPDATE 6/1/18:  This is a reminder and an update on the implementation of Oregon's statewide transit tax.

Starting on July 10, OSPS will activate the transit tax and the majority of employees will see the tax on their July paid August 1 paystub.  This is a different start date then what was mentioned previously.

DAS OSPS has made the decision to hold off on turning on the tax until after June final run 2.  After seeing how the tax calculates on prior month changes we felt it necessary to start after the June pay period is closed.  Any changes done after June final run 1 including simple pay code changes will trigger the tax to calculate on all of June's taxable wages.  This has the potential of creating numerous net pay negatives.

That does leave a window from July 1 to 9 when manual paychecks will not have the transit tax assessed on them.  However when July run 1 does occur it will then assess the tax and could generate a net pay negative.  You will need to be aware of this for any terminations during that time frame.

Going forward you will need to remember that any correctives set for any pay period within the tax year that OSPA will assess the transit tax on any taxable wages not previously calculated.  For example:  a retro work out of class is entered in PPDB in August that goes back to January.  Correctives for January through June will trigger the transit tax assessment on all taxable wages during that timeframe.  Then for July and August it will assess it on any taxable wages not previously calculated.  The tax is setup similar to the income tax which goes by when the wages are received, also known as the check date.  Unfortunately during this transition from no tax to the new tax OSPA's tax program is not designed to treat it differently.

ePayroll will have a message starting this afternoon about the transit tax.  That message is attached.

Thanks,

Seth Lewis
503-373-0198

From: OSPS-News [mailto:osps-news-bounces at listsmart.osl.state.or.us] On Behalf Of Announcements from OSPS to the users of the Oregon State Payroll Application
Sent: Tuesday, May 15, 2018 12:42 PM
To: OSPS News (osps-news at listsmart.osl.state.or.us<mailto:osps-news at listsmart.osl.state.or.us>) <osps-news at listsmart.osl.state.or.us<mailto:osps-news at listsmart.osl.state.or.us>>
Subject: OSPS E-News ~ Statewide transit tax

Payroll professionals,

Last night DAS OSPS migrated the statewide transit tax into the production region.  This tax is effective on checks dated 7/01/2018 or later.  That means any manual check requests starting on July 2 and all system generated payments (checks and direct deposit) starting with June run 2 will have this new tax on it.  Attached is a screen shot of how this will look on paystubs.  If correctives are set for prior pay periods with a check dated on or after 7/01/2018, all wages for that prior pay period will be subject to the statewide transit tax.

The tax is one-tenth of one percent (.1% or .001) - or $1 per $1,000 and is based on an employee's state subject taxable wages.  Employees with questions around this tax should contact Department of Revenue or consult their tax professional.

Here is a link with more information regarding this new tax - http://www.oregon.gov/DOR/programs/businesses/Pages/statewide-transit-tax.aspx

If you have questions about how this tax is handled within OSPA then feel free to contact the OSPS helpdesk<mailto:OSPS.HELP at oregon.gov>.  DAS OSPS are not tax professionals and if you or employees have questions about how this tax will affect your personal taxes then please contact Department of Revenue or a tax professional.

There will be communication put on ePayroll starting in June and a follow up via eNews too.

Thank you,

Seth Lewis
Manager
DAS/EGS/FBS/Oregon Statewide Payroll Services
503-373-0198, direct
503-378-3518, fax
503-378-6777, OSPS Help Desk
seth.lewis at oregon.gov<mailto:seth.lewis at oregon.gov>
Visit Our Online Resource Center:  State of Oregon: Oregon Statewide Payroll Services<http://www.oregon.gov/das/Financial/Payroll/Pages/Index.aspx>

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