[OSSSA218] Payroll Tax News from the Dept of Revenue

[Karen PARK]

Good morning all,

FYI - Payroll Tax News from the Dept of Reveinue 

Karen Park
State Social Security Coordinator
Oregon PERS
503 603-7633
karen.park at state.or.us

SL2
>>> TAVARES Cathleen M <cathleen.m.tavares at dor.state.or.us> 06/28/11 1:56 PM >>>
Payrolltax-News
June 2011.
Please provide this information to anyone who may benefit from it..


I. New Information:

After filing the necessary tax forms, some taxpayers find that they owe more taxes than they have the ability to pay. For those who find themselves in this situation, we may be able to help you settle your tax debt by allowing you to pay less than you owe. You can do this by requesting a Settlement Offer with the Oregon Department of Revenue

The settlement offer process isn't easy and it won't work for everyone; however, it may be worth applying for if you can prove you don't have enough money to pay off the debt you owe.

The Department has updated our information packets by making them easier to understand, assisting individuals who want to consider submitting a request for a settlement offer. The Department has also added a Settlement Offer Help Line at 503-945-8824 and an e-mail address: settlement at dor.state.or.us<mailto:settlement at dor.state.or.us> to answer any questions or concerns you may have.
It is important to be sure to read the "Conditions for Qualifying" prior to making your request. If you have any questions on whether you do qualify, feel free to contact us.
II. Important reminder: Transit taxes.
Even if your business location is outside the transit district boundaries, (Eugene/Springfield or Portland metropolitan areas), you are still required to report and pay transit taxes if you have employees physically working in these areas.  The job may be temporary or long-term.
For example, say your business is located in Salem, which is outside both the TriMet and Lane Transit district boundaries. However, you then send employees to work at a job site located in Portland OR. (TriMet District). You will be required to report and pay the TriMet Transit taxes on wages earned by all employees working from the Portland location even though your business is located in Salem.
Second scenario: Your business location is in Corvallis OR, which is outside the Lane Transit boundaries. However, you have an employee who teleworks from home in Eugene. You would need to report and pay Lane Transit taxes on the wages earned by that employee working from home, since this is considered their "base of operations".
III. Upcoming Educational Classes/Events:
1.  "S-Corps and LLC's"
       Where: Chemekata Community College SBDC
                    626 High St. Salem OR (downtown)
       When:  July 13th, 2:00-3:30
       Cost:     Free
This class covers the basics about LLC's and S-Corps and why they are popular. Learn more about how the are structured and their tax reporting responsibilities.  Contact Chemeketa at 503 399-5088 to register
2. Webinar: New Contractor Withholding Requirements: The In's and Outs of IRC 3402(t)

The office of Federal, State and Local Governments will hold a free, one-hour webinar July 14, 2011, to discuss required 3 percent income tax withholding on certain payments made by government entities, to take effect in 2013. The webinar is recommended for any Federal, state or local government entities as well as tax professionals.

Participants can get answers to these questions:

 *   What is Section 3402(t)?
 *   The Legislative history of Section 3402(t)
 *   Who must perform Section 3402(t) withholding?
 *   What payments are subject to Section 3402(t) withholding?
 *   Exceptions to Section 3402(t) withholding?
 *   Section 3402(t) deposit and reporting mechanics?

To register for the webinar go to: http://www.visualwebcaster.com/IRS/80377/reg.asp?id=80377


The Payrolltax-News e-mail list provides employers with complete and up-to-date payroll tax information. Employers can self-subscribe here<http://listsmart.osl.state.or.us/mailman/listinfo/payrolltax-news>. Representatives in the Business Division will send information to employers through this list. Employers can request additional information by e-mailing payroll.help.dor at state.or.us<mailto:payroll.help.dor at state.or.us>.

As a standard practice, e-mail sent from the department will be in text form only. Department of Revenue will not open attachments.

Questions about list content and subscription problems should be directed to the list owner:

Cathy Tavares
Oregon Dept of Revenue
Cathleen.M.Tavares at state.or.us<mailto:Cathleen.M.Tavares at state.or.us>
503-945-8762<mailto:Cathleen.M.Tavares at state.or.us>