OSPS E-News ~ Important Information About Tax Withholdings

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

Hello Payroll Professionals,

With the implementation of Workday Payroll, State Tax Withholding tables will align with the tables provided by Oregon Department of Revenue. It was discovered during parallel testing with Oregon State Payroll Application (OSPA) and Workday Payroll that certain highly compensated employees were having less state tax withheld in OSPA than they were in Workday Payroll. Upon further investigation, it was determined that OSPA was not programmed in such a way that calculated the total state withholding for this group of employees consistent with the tax tables.

The Department of Administrative Services made the decision to not change the complex programming in OSPA with less than six months left to use the legacy system and because employees have the opportunity to reconcile their tax liability when they file their state tax return.

The specific parameters for the affected employees are:

  *   Employee coded as single for state taxes, that have a minimum monthly federal subject wage of $8,333.34 up to $9,275.00,
  *   Employee coded as joint for state taxes, that have a minimum monthly federal subject wage of $16,666.67 up to $17,400.00.

Beginning with the January 3, 2023, paycheck, these affected employees will most likely see more state tax withheld from their paycheck. DAS will notify the affected employees of this change on December 20, 2022. We acknowledge this is another change due to modernizing our payroll system and you may receive questions about the change in pay. These affected employees may want to change their state W-4 withholding elections if they feel they are having too much state tax withheld, and they are able to do so easily within Workday<https://wd5.myworkday.com/oregon/d/inst/16bc493c23ca1001ab222835ec3a0000/rel-task/2998$40834.htmld>.

If you have questions, please email them to: FBS.CustomerQuestions at DAS.oregon.gov<mailto:FBS.CustomerQuestions at DAS.oregon.gov>.

Thank you,


Jason Robinson (he, him, his), CPA
OSPS Manager
DAS | Oregon Statewide Payroll Services
(971) 900-7688
Data Classification: Level 2 - Limited
http://oregon.gov/DAS/Financial/payroll/Pages/index.aspx

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