OSPS E-News ~ Backup Withholding Rate Change

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

Payroll Professionals,

As a reminder, the Backup Withholding Rate has changed from 28% to 24% effective immediately.   For deceased employee payouts you are required to withhold Federal Income Tax in the amount of 24% of gross wages if the payee fails to provide a TIN or SSN. For more information on this and other tax changes, please read at Notice 1036. https://www.irs.gov/pub/irs-pdf/n1036.pdf

Additionally, if you have further questions regarding deceased payouts, please see the OSPS reference manual section on Deceased Employees Recommended Practice. http://www.oregon.gov/das/Financial/Payroll/Documents/practicedeceasedee.pdf


Thank you,

Matthew Riley, CPA
OSPS Application Analyst
DAS | Oregon Statewide Payroll Services
(503) 373-0254 - direct
(503) 378-3518 - fax
http://oregon.gov/DAS/Financial/payroll/Pages/index.aspx

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