Payrolltax News LISTSERV

January 2009

 

Please share this important information with anyone who might benefit from it.

 

I.  Reminders:

 

1. Form WR:

The 2008 form WR (Withholding Annual Reconciliation Report) is due by February 28^th. 
 

When completing the form, remember that the first section must reflect the exact amount of state income tax withholding reported on form OQ for each quarter. Do not indicate any adjustments in this section unless amended returns had previously been filed. Line 6 reflects the state income tax withholding on all W2’s/1099’s issued under that particular state tax identification number. Line 7 allows for an explanation of any differences or adjustments that need to be made.

 

Be sure to include the name, title and telephone number of the person who can provide further information and clarification if necessary. You do not need to send in the W2’s or 1099’s for 2008 unless these are requested.  

2. Schedule B Detail.

Employers are generally required to make their state income tax withholding deposits at the same frequency as federal. When completing the Schedule B, the dates and amounts of deposit reflected on the form must match the date and amount of the actual deposit that was made. Do not indicate what should have been submitted. Schedule B needs to reflect what was actually submitted and when. Incorrectly completing this form can result in incorrect tax billings or late payment penalties.

 

3. Withholding Tax Tables:

The Withholding tax tables dated January 1 2007 will remain in effect for 2009. The Withholding formula may be adjusted with the following updates,           

 

             A.  Personal exemption credit: $176

             B.  Standard deduction:
                  Single—$1,945
                  Married—$3,895
             C.  Federal tax subtraction: $5,850

 

II:   Other reminders:

 

1.  The Workers Benefit Fund Assessment should not be reported on the form W2.  It is not considered to be a “local tax”

 

2. The TriCounty Metropolitan and Lane Transit taxes are employer taxes. These are not an employee deduction and should not be reflected on the form W2.
These taxes are based on wages earned for services performed within the transit districts by employees or self employed individuals. They are not based on where the employee resides unless they work from home. More information can be found @ http://www.oregon.gov/DOR/BUS/IC-211-503.shtml.

 

 

III Educational Opportunities:

 

     “Transit Tax Subjectivity”                                      Small Business Development Center

      Weds, February 4th, from 10:00-11:30                  1445 SW Willamette Rm. 117

                                                                                      Eugene OR                                                      

           

Call 541 463-5255 for more information and to register.

 

 

The Payrolltax-News e-mail list provides employers with complete and up to date payroll tax information. Employers can request additional information by e-mailing payroll.help.dor@state.or.us

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

Cathy Tavares
Oregon Department of Revenue
cathleen.m.tavares@state.or.us
503 945-8762