December 12, 2017
New Oregon Public Transportation Payroll Tax
Effective July 1, 2018, there will be a new 0.1% Public Transportation Payroll Tax on employee wages. The tax will be imposed on state residents, regardless of where services are performed, and nonresidents, for services performed in state. The tax will be deposited into a new Statewide Transportation Improvement Fund (STIF).
Employers will report and pay the tax to the Department of Revenue (DOR) at a time and manner yet to be determined. If an employer fails to deduct and withhold the tax, it will be responsible for the amount of the tax and a penalty of $250 per employee, up to a maximum of $25,000, if the failure is willful. However, residents subject to the tax who work out of state for an employer not doing business in Oregon will report and pay the tax themselves.
Income Tax Return Deadlines
The following returns will be due April 17, 2018:
- Individual tax returns,
- Form 1120, U.S. Corporation Income Tax Return, and
- Form 1041, U.S. Income Tax Return for Estates and Trusts.
The regular filing deadline of April 15 falls on a Sunday. The Washington D.C. Emancipation Day holiday will be observed on Monday, April 16, making April 17 the deadline.
The following returns will be due March 15, 2018:
- Form 1120S, U.S. Income Tax Return for an S Corporation, and
- Form 1065, U.S. Return of Partnership Income
Form 1099-Misc Reporting
The following is due by January 31, 2018:
- Forms to recipients
- Forms filed with IRS when reporting non-employee compensation payment in Box 7
- Forms filed with the State of Oregon
For payments in any other box besides Box 7:
- File with the IRS by February 28, 2018, if you file on paper
- File by March 31, 2018, if you file electronically
Depending on the number of forms you are submitting, you may be required to electronically file. The IRS requires electronic filing for 250 Form 1099s or more. The State of Oregon requires businesses with 11 or more of any type of Form 1099 information return to submit the information electronically. Oregon does not accept paper filings.
Annual Payroll Reporting
Employers must distribute Form W-2 to employees no later than January 31, 2018.
The Social Security Administration (SSA) and State of Oregon also require employers to submit Forms W-2 to them by January 31, 2018. Employers may file by paper or electronically to the SSA. Electronic filing is required if filing 250 or more Form W-2s. Oregon requires all employers to electronically file their Oregon Form W-2 copies. Oregon does not accept paper filings.
Social Security Wage Base
The corrected 2018 wage base is $128,400 for Social Security (old age, survivors and disability insurance–OASDI). There was a previously released amount of $128,700.
If you have any questions about the above information, please contact Jennete Griggs or Sarah Long at our office at 541.687.1170.