Payrolltax News LISTSERV

October 2010

Welcome all new subscribers! Please share this information with anyone who would benefit from it.  

New Information:

1.    IRS Changes:  IRS has announced it will no longer be mailing Publication 393, Federal Employment Tax Forms, to employers due to the continued growth in electronic filing, and to help reduce costs.  They also will no longer be sending out payment coupons, instead urging taxpayers to use EFTPS (Electronic Federal Tax Payment System).

The Oregon Tax Coupons (Form OTC) will be mailed in mid December. However, Oregon is following the federal treatment of electronic payments. If you are required to use EFTPS for federal purposes, you must use EFT for Oregon purposes. For more information on EFT, refer to our website at http://www.oregon.gov/DOR/BUS/index.shtml under “Electronic Funds Transfer”.        

Paper forms and booklets will still be provided by the Oregon Department of Revenue for reporting payroll withholding taxes:

·         Oregon Domestic (Form OA) returns will be mailed in November 2010.

·         Oregon Agricultural (Form WA) returns will also be mailed in November 2010. 

·         Combined Payroll Tax Booklet and forms will be mailed in mid February 2011.

             
Additional forms can be ordered or downloaded from the Employment website at www.oregon.gov/EMPLOY/TAX . Look under the section “Reporting Methods” for “Forms”

2. WBF (Workers Benefit Fund) Tax rate:
   
   The WBF tax rate for 2011 will not change. The assessment rate will continue to be 0.028.

(Note: Additional 2011 tax rate information will be provided in a future newsletter.)    

Reminders:  

1. Contact Information:

This is the time of the year when important tax information is about to be mailed; therefore, it is very important that your contact information is current. If you have either relocated or changed your telephone, e-mail, or other contact information, be sure to submit the “Change in Status” form located at http://www.oregon.gov/DOR/BUS/forms-payroll.shtml to update your account.

This ensures that you will receive important information such as law changes, new tax rates and tax forms.

2. Payroll Reports (Form OQ)- No Payroll to Report: 

You are required to file form OQ for all quarters while your payroll withholding account is active, even if you have no payroll to report. The easiest way to file is to submit a “no payroll/no hours worked” report vial the Interactive Voice Response System (IVR).  Simply call 503 378-3981 and follow all the prompts. Remember, this can only be used for “no payroll/no withholding” returns.

If you will not have Oregon payroll for an indefinite period of time, you can request to put your account on “inactive status”. While inactive you would not be required to submit quarterly tax reports until you again hire employees. Complete the “Change in Status” form indicating the current date of your last payroll and send it in. When you again have employees, simply contact us at 503 945-8091 opt 2 and request to re-open your account.   

  ***Upcoming Classes:

 Where:  Lane Community College Small Business Development Center.

               1445 Willamette St.

               Eugene OR. 97405
 

• Payroll Tax Basics, 3-4:30 pm, Thursday Oct 21, WILD 117
  Learn the basics on correctly reporting and paying state payroll withholding taxes
           
• Classifying a Worker as an Employee or Independent Contractor, 3-5 pm, 
  Thursday Oct 28, WILD 117
   Learn the difference between the federal and state guidelines on what constitutes an employee versus an independent contractor, and the issues and legal ramifications that arise when employees are not correctly classified.
   
• LLC's and S-Corps, 3-4:30 pm, Thursday Nov 4, WILD 117
  Learn more about these particular entities as this workshop will cover how these are taxed and some of the common misconceptions.

 ***Classes will be held depending on enrollment.

For more information and to register for classes, please call 541 463-5255.

(Note: Additional outreach and educational opportunities will be provided in the next LISTSERV.)

 
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.
 
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