OSPS E-News ~ New Fed & State Tax Rates in OSPA

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

Payroll Professionals,

The federal and state tax tables were recently updated in OSPA.  As a result any checks issued February 1 or later will calculate based on those new rates.  That means the January paid February 1 payroll will be based on these new rates.

The single and joint monthly tax brackets for federal withholding are listed below.  The State of Oregon is a monthly employer and the tax brackets setup in OSPA are based on a monthly salary.  As you can see the Federal tax rates dropped for most tax brackets.  What affect will this be to an employee?  We are not tax professionals but most employees could see an increase in their take home pay since their federal tax withheld will probably be lower.

The changes for State of Oregon were minimal.  Overall some employees could see anywhere from a few dollars to a couple of hundred dollar difference starting February 1.

If your agency wants to inform your employees of this change that is up to your agency to decide.  Please refer employees who have tax questions to tax professionals.

Keep in mind if an employee sent in a new W-4 for 2018.  That will have an impact on their take home pay too.

Filing single per employee's W-4

2017 - Rates

2018 - Rates

MIN_EARN

MAX_EARN

TAX_RATE

MIN_EARN

MAX_EARN

TAX_RATE

$                 -

 $              192.00

0

$                 -

 $              308.00

0

$        192.00

 $              969.00

10.0%

$        308.00

 $          1,102.00

10.0%

$        969.00

 $          3,354.00

15.0%

$    1,102.00

 $          3,533.00

12.0%

$    3,354.00

 $          7,850.00

25.0%

$    3,533.00

 $          7,183.00

22.0%

$    7,850.00

 $        16,163.00

28.0%

$    7,183.00

 $        13,433.00

24.0%

$  16,163.00

 $        34,917.00

33.0%

$  13,433.00

 $        16,975.00

32.0%

$  34,917.00

 $        35,058.00

35.0%

$  16,975.00

 $        41,975.00

35.0%

$  35,058.00

 $  9,999,999.00

39.6%

$  41,975.00

 $  9,999,999.00

37.0%



Filing joint per employee's W-4

2017 - rates

2018 - rates

MIN_EARN

MAX_EARN

TAX_RATE

MIN_EARN

MAX_EARN

TAX_RATE

$                 -

 $              721.00

0

$                 -

 $              963.00

0

$        721.00

 $          2,275.00

10.0%

$        963.00

 $          2,550.00

10.0%

$    2,275.00

 $          7,046.00

15.0%

$    2,550.00

 $          7,413.00

12.0%

$    7,046.00

 $        13,479.00

25.0%

$    7,413.00

 $        14,713.00

22.0%

$  13,479.00

 $        20,167.00

28.0%

$  14,713.00

 $        27,213.00

24.0%

$  20,167.00

 $        35,446.00

33.0%

$  27,213.00

 $        34,296.00

32.0%

$  35,446.00

 $        39,946.00

35.0%

$  34,296.00

 $        50,963.00

35.0%

$  39,946.00

 $        99,999.99

39.6%

$  50,963.00

 $        99,999.99

37.0%


Thanks,

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>
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <https://omls.oregon.gov/pipermail/osps-news/attachments/20180126/80b06e7f/attachment.html>