Payroll Tax News Listserv

May 2009 Edition

 

 

Please share this information with anyone who may benefit from it…

 

I. Reminders:

 

A. Credit memos:
 

Be sure to review credit notices you receive from the payroll reporting agencies. Overpayments can occur for a variety of reasons, including payments that had been incorrectly applied and tax incorrectly reported on the form OQ, such as not including 1099 withholding. Failure to do so can result in payments that were truly meant as tax payments being inadvertently refunded back to you.  Billings will also be issued for taxes that had been refunded in error.

It is important to ensure that there truly is an overpayment when you request a refund. If there are any questions, feel free to contact the agency that sent the credit notice for further explanation.

 

B. Amended Returns:

 

When submitting an amended return, be sure to provide an explanation of any substantial changes and the documentation for those changes if available.
For example, if a change occurred due to incorrectly withholding taxes for Oregon, be sure to include a copy of the W2C that was issued.   

This information will allow for amended returns to be processed quickly and correctly. 

 

 

II. Important information:

 

A. Withholding tax tables:
There are no changes to the Oregon Withholding Tax tables due to the federal stimulus changes. The Withholding Tax Tables effective January 1, 2007 will remain in effect.

 

B. Federal Help with Health Insurance Premiums:

People who have lost their jobs after August 31, 2008 may qualify for this assistance.

The federal government will pay 65 percent of monthly health insurance premiums for nine months for certain laid off workers who are eligible to continue their employer health plan under federal COBRA law or Oregon’s state continuation law. The employer has an important role in this program and the Oregon Insurance Division has details at: http://insurance.oregon.gov/consumer/consumer-issues/federal-stimulus-info/federal-stimulus-info.html.

 

If you have any questions, please contact the division’s consumer advocates: 1-888-877-4894.

Additional News: W2 Reporting

Effective for the calendar year 2009, all businesses with 250 or more employees and payroll service providers are required to report W-2 information electronically [OAR 150-316.202(3)]. This new system is called iWire, Income and Wage Information Return E-services. The new system should be available to receive files by July, 2009.

The Oregon Department of Revenue follows the same file specification for the W-2 information as the Social Security Administration with some modification. Visit the Social Security Administration's website for more information about their EFW2 and EFW2C programs.

The transmittal due date is March 31, 2010. For businesses that close throughout 2009, W2s must be filed within 30 days of the business’s closure. Because the electronic system is not yet available, you may hold filing W2s for closing businesses until after the system is available for you without penalty.

Forms W-2 are filed electronically only; paper W-2s or other forms of media are normally not accepted unless specifically requested to reconcile an account.  Also, forms 1099 are not required to be electronically filed with Oregon Department of Revenue at this time.

NOTE: Large employers that do not use a payroll service and have fewer than 250 employees may also file their W-2s electronically if they choose, but will be required to file electronically starting with 2010 forms. Small employers (less than 50 employees) may also choose to file electronically now, but will be required to starting with 2011 forms.

Please visit our website at http://www.oregon.gov/sites/DOR/PERTAX/iwire_info.page, call us at 503 945-8091, or e-mail us at iWire.dor@state.or.us  for further information.

III. Education:

 

There is still plenty of time to participate in the Four Part Seminar entitled “NAVIGATING THE TAX MAZE:  A 4-PART SERIES FOR NEW BUSINESSES AND EMPLOYERS ON TAXES AND OTHER PAYROLL DEDUCTIONS”

 

Sponsored by: Lewis and Clark Law School Business Center

Location: Portland Development Commission

               

Times:    4:00pm-7:00pm

 

The next class on June 4^th is entitled “SSA/IRS Wage Reporting Tips” (IRS and Social Security)

 

The final class on June 18^th will be “Combined State Payroll Tax Reporting” (Department of Revenue, Employment and Workers Benefit Fund)

 

For further information, class schedules, and to register, go to Lewis and Clarks Small Business Legal Clinic site @ http://law.lclark.edu/org/sblc, or call 503 768-6940   

 

***The Payrolltax-News e-mail list provides employers with complete and up-to-date payroll tax information. Employers can self-subscribe here. Representatives in the Business Division will send information to employers through this list. Employers can request additional information by e-mailing payroll.help.dor@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 because of the possibility of viruses.
 
Questions about list content and subscription problems should be directed to the list-owner:  

Cathy Tavares
Oregon Dept of Revenue
Cathleen.M.Tavares@state.or.us
503-945-8762