[Revenews] Payrolltax-News LISTSERV Dec. 2011 Part 1

[TAVARES Cathleen M]

Payrolltax News LISTSERV (part 1)
Please provide this information to those who may benefit


I.    Rate Changes for 2012:

A.     Transit taxes:        TriMet tax:          0.007018
                                                        Lane Transit:        0.0068


B.     Employment Taxes: "New Employer" rate (new to Oregon): 3.3%
               Wages base:                        $33,000.00
               Tax rate:                               ***Varies by Employer

*** Unemployment Insurance Tax rate notices for 2012 were mailed to employers November 15, 2011. If you have not received yours, contact Employment Department at 503 -947-1488

C.      Workers Benefit Fund Assessments:   2012 rate stays the same at 2.8 cents per hour.


D.     Standard Deduction Amounts for 2012:
Single:                  $2025.00
Married:              $4055.00


E.      Federal Tax Subtraction for 2012:  $6100.00


II.      Withholding Tax Formulas/Tables:

Formula changes for 2012 are listed on our website at  http://www.oregon.gov/DOR/BUS/payroll_updates.shtml.  We have not posted the withholding tables yet pending changes to the federal tables. Once we update them, we will post them to this site.


III.    Important Year-end information:

Even though employers are now required to submit W2 information electronically, you are still required to submit the paper Form WR to reconcile your account. Form WR, allows you to reconcile your actual withholding amounts to what you reported and paid on Form OQ for each quarter.

 Hints that allow for accurate processing of the Form WR include the following:


1.       When completing Form WR line 6, make sure that you indicate your actual withholding amounts based on the W2's and 1099's submitted, not the total of the OQ's you submitted for the year.


2.       If an adjustment needs to be made, all quarterly amended returns and documentation must be included with the Form WR. Sending the amended quarterly returns separately may result in errors such as duplicating an adjustment.



3.       Be sure to indicate the reason for the adjustment you are making on line 7 of Form WR. Please be specific.



4.       If you had a sale or merger at any time during the tax year, and the WR reflects withholding from all the companies involved, you must indicate the Business Identification Number(s) (BIN) of the affected entities and which quarters were included on the WR when completing line 7. Failure to do so may result in an assessment for tax that has actually been reported and paid under the old BIN.



5.       Although W2 information is now required to be electronically submitted, you still may be asked to supply additional W2, W2c or W3 transmittal information as verification for the information provided on the Form WR. Failure to provide the requested information may delay reconciliation of your account, including delayed refunds if the account was overpaid.


6.       IMPORTANT:  If you amend a quarterly report for withholding after you have submitted the original Form WR, you must also submit an amended WR to report the adjustment and to provide the new withholding total for the year. This is especially true if the adjustment results in a refund of an overpayment.


IV.   IRS Information :
The Voluntary Classification Settlement Program (VCSP) is a voluntary program that allows taxpayers to reclassify their workers as employees for employment tax purposes for future tax periods, providing partial relief from federal employment taxes.
This program is available for taxpayers who want to voluntarily change the classification of their workers if they are incorrectly treating their employees as Independent Contractors.
This program is available for federal purposes only; Oregon does not have such a program. However, if you believe you have misclassified your workers, contact us before we contact you and we will help you classify them properly. Contact the Worker Misclassification unit at 503-945-8095 for more information.
For further information and to find out how to apply, be sure go to the IRS website at
http://www.irs.gov/businesses/small/article/0,,id=246013,00.html



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

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