[Revenews] January 2010 edition

[TAVARES Cathleen M]

PayrollNews LISTSERV:
January 2010 Edition
 
Please share with anyone who you think would benefit from this
information.

I. End of the year reporting:

A. Electronic W2 Reporting (iWire):

Effective with 2009 forms W2, businesses with 250 or more employees are
required to report W-2 information electronically. Smaller businesses
will be phased in over the next two years.  All payroll service
providers are also required to submit W2 information electronically with
2009 forms.  [OAR 150-316.202(3)
<http://arcweb.sos.state.or.us/rules/OARS_100/OAR_150/150_316.html> ].
A "payroll service provider" is any person who prepares payroll tax
returns on behalf of someone else and is paid to do so. Most software is
already updated to accommodate Oregon W2 efile. Check with your software
vendor to obtain their updates. 

NOTE: The due date for reporting is extended to March 31 for electronic
filing.  

You can find important information and answers to basic questions about
iWire on the Department of Revenue's website: 

1. Frequently Asked Questions:
http://www.oregon.gov/DOR/PERTAX/docs/iWire_FAQ.pdf
<http://www.oregon.gov/DOR/PERTAX/docs/iWire_FAQ.pdf>  

2. Specification information for software vendors:
http://www.oregon.gov/DOR/PERTAX/docs/iwire_specs.pdf
<http://www.oregon.gov/DOR/PERTAX/docs/iwire_specs.pdf>  

3. Programming issues:
http://www.oregon.gov/DOR/PERTAX/docs/iWire_troubleshoot.pdf
<http://www.oregon.gov/DOR/PERTAX/docs/iWire_troubleshoot.pdf>  

If you have any questions, feel free to contact us at 503 945-8091, or
e-mail us at iWire.DOR at state.or.us

B. Important note: 

Do not include the WBF (Workers Benefit Fund) Assessment or the Transit
Tax Assessments on form W2 under "Local Taxes".  These have no bearing
on personal income taxes and therefore do not need to be reported.
Transit Taxes are also an employer tax and are not deducted from an
employee's paycheck.    

Note: You are required to retain W2 information for at least six years.
You are also required to make all reasonable efforts to mail this
information to all employees. Be sure to document your efforts should
you be unable to get the W2 information to an employee. This information
may be requested by the IRS.

II. Form WR:

All Oregon employers, even those submitting W2 information
electronically, are required to submit the form WR (Oregon Withholding
Annual Reconciliation Report) at the end of the year to reconcile what
was reported on form OQ with the total withholding figures reported on
W2's/1099's for state taxes. This form can be downloaded from our
website @ http://www.oregon.gov/DOR/BUS/forms-payroll.shtml
<http://www.oregon.gov/DOR/BUS/forms-payroll.shtml> . 

The WR is required to be filed by February 28, 2010.  However, if you
are required to submit your W2 information electronically, you can also
submit the WR by the extended due date of March 31st.  

If you are reporting a substantial change on the form WR, or are asking
for a large refund due to errors that have occurred throughout the year,
it is very important to substantiate those changes.  Failure to do so
will result in delaying the processing of any refund request.

"Substantiation" should include such information as: 

               1.    A complete explanation of the change and why the
refund request is being made, (line 7 form WR)
2.   W2C and/or W3 transmittals showing the correct information reported
to the IRS for state withholding taxes. 
3.   Company reconciliation reports (other than the W3 transmittal)
verifying what had been reported to the IRS for Oregon withholding.
4.   Record of when the employee relocated if this was the reason for
correcting withholding  
5.   W4 information showing correct number of allowances claimed if
necessary 
6.   Any other substantiation that verifies the changes being reported
on the form WR 

If you also plan to submit amended returns reflecting these changes, be
sure to send these in with the form WR. Sending these separately can
cause confusion or changes being duplicated, resulting in possible
assessments later on.  

Please contact us at 503 945-8091 if you have any questions on how to
complete this form.  

III. Additional Tax Updates:

1.   Withholding Tax Tables: 
Effective March 1, 2010 the Department of Revenue will make available an
updated version of the withholding tables.  

       The updated tax tables and formulas will be available @
http://www.oregon.gov/DOR/BUS/payroll_updates.shtml
<http://www.oregon.gov/DOR/BUS/payroll_updates.shtml> 

2.   The new transit rates for 2010 are:         TriMet:  0.006818
                                                               Lane
Transit:  0.0066 

3.   Employment Tax rates for new employers:   New Employer rate:  3.1% 
 
Wage Base:  $32,100.00

4.   2009 Workers' Benefit Fund Assessment ("Cents-Per-Hour") Rate:
2.8 cents (unchanged from 2009)

  


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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> 


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