OSPS E-News ~ State income withholding tax change

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

Payroll professionals,

OSPS recently migrated a change to the State Income Tax Withholding formula.  This change was done to meet the requirements of Legislative changes required by HB3601 which eliminated all personal exemption credits for tax payers with federal adjusted gross income of more than $100,000 for single or married filing separately or more than $200,000 for married filing joint or head of household.

This change will impact employees who claim on their W-4 a filing status of "Single" and whose wages exceed $8,333.33 per month or "Married" and whose wages exceed $16,666.67 per month.  In 2019, the Oregon withholding formula allows a credit of $17.17 per exemption claimed.  This change is effective for the entire tax year and could affect prior pay periods if a corrective is set.

Example:  Jane Smith, her W-4 that was entered on the P010 shows single and 2.  She has a monthly salary of $10,121.  In May her state withholding was $720.  In June her state withholding was $754.  The difference of $34 is the $17 x 2 exemptions.  As a result of this her net pay decreased by $34.

If you have questions about this or anything else then please feel free to contact the OSPS Help Desk.

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/20190702/9e5402c4/attachment.html>