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
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to employers through this list. Employers can request additional information by
e-mailing payroll.help.dor@state.or.us.
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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