reglab/statecodes huggingface dataset:
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0230 - Subtraction for Previously Taxed Contributions

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
(a) For
			 tax years beginning on or after January 1, 1991, Oregon will allow resident
			 taxpayers a subtraction for distributions from an individual retirement
			 account, Keogh plan or Simplified Employee Pension plan for the contributions
			 to the plan that have already been taxed by another state. The subtraction is
			 allowed only if all of the following conditions are met:
(A) The distributions consist of
			 contributions made during a period in which the taxpayer was a nonresident of
			 Oregon;
(B) The distributions
			 consist of contributions made during a period in which the taxpayer was a
			 resident of a state that imposes an income tax;
(C) The distributions consist of
			 contributions for which no deduction, exclusion or exemption for the
			 contributions was allowed or allowable in the state in which the taxpayer was a
			 resident prior to becoming an Oregon resident; and
(D) No deduction, exclusion, subtraction or
			 other tax benefit has been allowed for the distributions by another state
			 before the taxpayer becomes a resident of Oregon.
Example
			 1
:
In 1997 Sam was a resident of a state that
			 imposes no income tax. He made a deductible IRA contribution in 1997. In 1998
			 Sam converted his regular IRA of $2,000 to a Roth IRA. The distribution will be
			 reported over a 4-year period. Sam became a permanent Oregon resident on April
			 1, 1998. Sam is not entitled to a subtraction because the contributions were
			 not previously taxed. Sam will be taxed on $375 (3/4 of $500 for the period
			 April through December 1998) on his 1998 part year Oregon return. If Sam
			 remains an Oregon resident he will be taxed on $500 in 1999, 2000 and
			 2001.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0234 - "Withholding Statement" and "Exemption Certificate"

Current through Register Vol. 63, No. 7, July 1, 2024
(1) For purposes of ORS
			 316.177 and ORS
			 316.182:
(a) "Exemption certificate" means a form
			 prescribed by the department containing an employee's instruction to an
			 employer certifying that the employee has no Oregon withholding
			 requirement.
(b) "Withholding
			 statement" means a form prescribed by the department containing an employee's
			 instruction to an employer of the requested amount of income tax to withhold
			 from an employee's wages or other income. A withholding statement includes:
(A) The Oregon Form OR-W-4;
(B) An Oregon-only version of the 2019 or
			 prior federal Form W-4; or
(C) A
			 2019 or prior federal Form W-4.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0237 - Employees Exempt from Withholding

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Expiration for election. An election for
			 exemption from withholding expires on February 15 of the calendar year
			 following the year of the election. An individual must provide a new exemption
			 certificate to the employer to claim an exemption from withholding for any
			 subsequent tax year.
(2) Exemption
			 requirements. An individual claiming exemption from withholding must meet one
			 of the following requirements:
(a) The
			 individual's wages must be exempt from Oregon taxation; or
(b) The individual must meet the
			 qualification for having no tax liability.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0239 - Withholding on Fringe Benefits

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 A fringe benefit is not subject to withholding for Oregon purposes if it is not
			 subject to Oregon income tax.
(2)
			 When a fringe benefit is subject to withholding, the rate of withholding is
			 determined by Oregon withholding tax tables considering total income for the
			 payroll period.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.162
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0241 - Independent Contractor Definition

Current through Register Vol. 63, No. 7, July 1, 2024
(1) As used in the various provisions of ORS
			 Chapters 316, 656, 657, 671 and 701, an individual or business entity that
			 performs labor or services for remuneration shall be considered to perform the
			 labor or services as an "independent contractor" if the standards of ORS
			 670.600 are met. See OAR
			 150-670.600 for definitions related to independent contractors.
(2) The Construction Contractors Board,
			 Employment Department, Landscape Contractors Board, Department of Consumer and
			 Business Services, and Department of Revenue of the State of Oregon, under the
			 authority of ORS 670.605, will cooperate as
			 necessary in their compliance and enforcement activities to ensure among the
			 agencies the consistent interpretation and application of ORS
			 670.600.
Stat. Auth.: ORS
				  305.100,
				  670.605
Stats. Implemented: ORS
				  670.600
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0243 - Personal Liability of Responsible Officers, Members, or Employees for Taxes Withheld

Current through Register Vol. 63, No. 7, July 1, 2024
(1) To be
			 held personally liable for unpaid income tax withholding or statewide transit
			 tax under ORS 316.162, a person must have been
			 considered to have been an "employer." In addition, the person must have been
			 in a position to pay the income tax withholding or statewide transit tax or
			 direct the payment of the income tax withholding or statewide transit tax at
			 the time the duty arose to withhold or pay over the taxes. Additionally, the
			 person must have been aware, or have been in a position that should have been
			 aware, that the income tax withholding or statewide transit tax was not paid to
			 the department. An employer cannot avoid personal liability by delegating their
			 responsibilities to another.
(2)
			 "Employer" includes, but is not limited to an officer, member or employee of a
			 corporation, partnership or other business entity, if, among other duties, that
			 individual has:
(a) Authority to see that the
			 income tax withholding or statewide transit taxes are paid when due;
(b) Authority to prefer one creditor over
			 another;
(c) Authority to hire and
			 dismiss employees;
(d) Authority to
			 set employees' working conditions and schedules;
(e) Authority to sign or co-sign checks;
(f) Authority to compute and sign
			 payroll tax or statewide transit tax reports;
(g) Authority to make fiscal decisions for
			 the business;
(h) Authority to
			 incur debt on behalf of the business; or
(i) Performed duties other than those
			 outlined by the corporate bylaws or partnership agreement.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0250 - Bonding Requirements for Delinquent Withholding Employers

Current through Register Vol. 63, No. 7, July 1, 2024
(1) As used in this
			 section, a surety bond means a bond that guarantees payment of future income
			 tax withholding or statewide transit taxes of employers. In order for a surety
			 bond to be acceptable, it must be issued by a company authorized to do business
			 in Oregon by the Oregon Division of Financial Regulation.
(2) As used in this section, an irrevocable
			 letter of credit means an irrevocable letter of credit issued by a commercial
			 bank. "Commercial bank" is defined as a bank, a savings bank, a stock savings
			 bank, a national bank, a foreign institution or an extranational institution.
(3) The department may require an
			 employer to post a bond or irrevocable letter of credit if the employer becomes
			 delinquent for three calendar quarters and the tax amount exceeds $2,500.00.
			 The amount of the bond or irrevocable letter of credit must be at least equal
			 to the amount that should have been withheld from wages for four calendar
			 quarters.
(4) If an employer
			 elects to pay over income tax withholding or statewide transit taxes within
			 three banking days of each payday, the employer will not be required to post a
			 bond or irrevocable letter of credit. Employers electing this option must
			 continue making payments in this manner until all delinquent amounts are paid
			 in full and they have had no further delinquent returns or payments for four
			 consecutive calendar quarters.
(5)
			 As used in ORS 316.164(4),
			 "other methods of collection" means billing notices, collection letters, and
			 telephone calls.
(6) All bonds or
			 irrevocable letters of credit become the property of the department and must be
			 used solely to guarantee payment of income tax withholding or statewide transit
			 taxes. The department may, at any time, apply any part or all of the bond or
			 irrevocable letter of credit to any delinquency accrued after the bond or
			 irrevocable letter of credit was posted. However, the employer must maintain
			 the original amount of the bond or irrevocable letter of credit at all times.
(7) The bond or irrevocable letter
			 of credit, or unused portion must be returned to an employer when:
(a) The employer stops doing business as an
			 employer and all delinquent amounts are paid in full; or
(b) The employer pays all delinquent amounts
			 in full and has no further delinquent returns or payments for four consecutive
			 calendar quarters.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0257 - Employer's Election of Method of Computing Withholding

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Employers have the option of using either
			 the tax tables or the formulas developed and furnished by the department in
			 computing the amount to be withheld from regular wage payments. The tax tables
			 and formulas are published by the department. Employers may not modify the
			 published tables or formulas.
(2)
			 If a supplemental wage payment is made on or after January 1, 2020, the
			 employer may compute the amount to be withheld by using the tax tables or
			 formulas, or may withhold at a flat rate of 8 percent. Supplemental wage
			 payments include bonuses, premiums, awards, gifts and other payments made to an
			 employee, on the condition of their employment, occurring no more than twice a
			 year.
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  316.167
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0265 - Withholding Payments: Cash Basis

Current through Register Vol. 63, No. 7, July 1, 2024
All withholding is on a cash basis and must be reported on a
				cash basis.
Example:
If services are performed in January but
				not compensated until April, withholding on the wages for those services is
				reported on the report for the quarter ending June 30.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.168
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0267 - Additional Time to File Reports

Current through Register Vol. 63, No. 7, July 1, 2024
Oregon does not allow additional 10 day federal extension to
				file the quarterly tax report when all payments are paid when due. Information
				provided by the taxpayer on the tax report is essential to providing timely
				payment of Unemployment Insurance benefits.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.168
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0275 - Treatment of Payroll Based Program Overpayments

Current through Register Vol. 63, No. 7, July 1, 2024
(1) If an employer has overpaid income tax
			 withholding, statewide transit tax withholding, or transit district payroll
			 taxes due for a quarter and files an original or amended combined quarterly tax
			 return or an original or amended statewide transit tax return, the department
			 will refund the overpayment or apply the overpayment (roll over) toward the
			 employer's liability for the current or prior quarter if the employer responds
			 to the department's notice within 14 calendar days of the date of the
			 notice.
(2) If an employer has
			 overpaid income tax withholding, statewide transit tax withholding, or transit
			 district payroll taxes due for a quarter and does not instruct the department
			 how the credit will be treated within the timeframe established in section (1)
			 of this rule, the overpayment will be rolled over as a payment toward the
			 employer's liability for that tax program for the subsequent quarter.
(3) If the department records show that the
			 employer is no longer in business, and all returns have been filed, the
			 overpayment will be refunded.
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  316.171 &
				  320.555
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0282 - Exemptions for Military Personnel

Current through Register Vol. 63, No. 7, July 1, 2024
In addition to the withholding exemptions that a member of the
				Armed Forces may claim for federal income tax withholding purposes, such person
				who is a resident of the State of Oregon shall be allowed to claim a sufficient
				number of personal exemptions to equal the amount of active duty military pay
				that is permitted to be subtracted from gross income on the member's Oregon
				personal income tax return.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.177
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0284 - Penalty

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Definitions for
			 the purposes of ORS 316.177 and this rule:
(a) "Frivolous position" includes, but is not
			 limited to:
(A) Reference to a spurious
			 constitutional argument;
(B)
			 Reliance on a "gold standard" or "war tax" deduction;
(C) An argument that wages or salaries are
			 not includable in taxable income;
(D) An argument that the Sixteenth Amendment
			 to the United States Constitution was not properly adopted; or
(E) An argument that "unenfranchised,
			 sovereign, free men or natural persons" are not subject to the tax
			 laws.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0290 - Procedure for Correcting the Filing of Withholding Statements or Exemption Certificates

Current through Register Vol. 63, No. 7, July 1, 2024
(1) For the
			 purposes of this rule, "materially deficient" withholding includes, but is not
			 limited to:
(a) When the employee has filed an
			 exemption certificate with the employer and the department determines the
			 employee does not meet the exemption requirements given in OAR
			 150-316-0237;
(b) When the employee
			 has filed a withholding statement with the employer and the department has
			 determined the employee incorrectly calculated their withholding rate with no
			 reasonable basis for the calculation, or has claimed a frivolous position, as
			 defined in OAR 150-316-0284.
(c)
			 When the employee has not filed an Oregon personal income tax return and the
			 department has assessed tax owing, after withholding and estimated payments are
			 credited, in two of the past three filing tax years under ORS
			 305.265(10);
(d) When the employee has filed an Oregon
			 personal income tax return for the past three filing tax years and owed more
			 than $1,000 in net tax to pay, after withholding and estimated payments are
			 credited, for each of those tax years.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0295 - Credit for Tax Withheld

Current through Register Vol. 63, No. 7, July 1, 2024
If the tax has actually been withheld at the source and
				reported to the Department of Revenue, credit or refund shall be made to the
				recipient of the income even though such tax has not been paid to the
				Department by the employer. Where the employer has neither reported nor paid
				the tax required to be withheld from an employee's wages but the employee
				submits evidence proving to the satisfaction of the Department that the
				employer actually did withhold such a tax, the Department shall allow the
				employee credit or refund for the amount so proved. Ordinarily, minimum
				satisfactory evidence shall consist of a statement from the employer showing
				the amount of tax withheld and an affidavit of the employee as to the facts
				upon which the claim for credit or refund is based.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.187
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0297 - Where Taxpayer Reports on Fiscal Year Basis

Current through Register Vol. 63, No. 7, July 1, 2024
Taxes withheld during any calendar year shall be allowed as a
				credit for the taxable year of the taxpayer which begins in that calendar year.
				For example, where an employee is on a fiscal year ending June 30, 1969, he
				would credit the tax withheld on his wages for the calendar year
				1968.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.187
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0307 - Withholding Income Taxes on IRAs, Annuities, and Compensation Plans

Current through Register Vol. 63, No. 7, July 1, 2024
Oregon's requirements to withhold income taxes from IRAs,
				annuities, and deferred compensation plans will be consistent with the
				provisions of Internal Revenue Code (IRC) Section 3405 except that mandatory
				backup withholding of income taxes will not be required for a rollover from one
				qualifying plan to another qualifying plan under circumstances that would
				require such withholding of income taxes for federal purposes.
Example:
On July 1, 2016, Fred Smith removed his
				IRA account from Bank A and two days later placed it with Bank B. Since Fred
				didn't have Bank A do a direct transfer of funds to a new IRA account with Bank
				B, IRC 3405 requires Bank A to withhold 20 percent in payment of any income
				taxes that may be due if Fred failed to roll the funds into a new qualifying
				plan (which would cause the funds to be includible in taxable income). For
				Oregon, Bank A is not required to withhold income taxes.
Publications: Contact the Oregon Department of Revenue to
				  learn how to obtain a copy of the publication referred to or incorporated by
				  reference in this rule pursuant to ORS
				  183.360(2) and
				  ORS 183.355(1)(b).
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  316.189
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0315 - Alternative Withholding Payment Method for Employers to Avoid Undue Burden

Current through Register Vol. 63, No. 7, July 1, 2024
(1) ORS
			 316.191 allows alternate methods
			 for making withholding payments when an undue burden is caused by the present
			 withholding method. The following are two examples of "undue burden:"
(a) The employer is required to make Oregon
			 tax withholding payments to the state of Oregon based on its nationwide payroll
			 more often than it would based on payroll for its employees working in the
			 state of Oregon.
(b) Oregon
			 resident performs services outside the state and the employer is asked to
			 register and withhold, voluntarily, as a convenience to the employee and the
			 state of Oregon.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0320 - Voluntary Withholding for Retired Members of the Uniformed Services

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Upon written
			 request to the appropriate retired pay office of uniformed service, a member
			 may request voluntary state withholding tax. This request shall include the
			 following information:
(a) Member's full
			 name;
(b) Social Security number;
(c) Amount of monthly withholding
			 being requested;
(d) The state to
			 receive withheld monies;
(e)
			 Member's current address;
(f)
			 Signature of member, or in the case of incompetence, the signature of his or
			 her guardian or trustee.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0325 - Voluntary Withholding for Civil Service Annuitants

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Upon written or telephone request to the
			 U.S. Office of Personnel Management, a civil service annuitant may request
			 voluntary state tax withholding.
(2) A permanent withholding tax account shall
			 be established in the name of the U. S. Office of Personnel Management for
			 deposit of monies withheld by the request of civil service annuitants. An
			 account number and appropriate reporting forms shall be supplied at the
			 inception of said account.
(3)
			 Reporting shall be done in a medium that complies with state reporting
			 standards applicable to employers in general. For Oregon Department of Revenue
			 purposes, reporting shall be required on the withholding portions of the Oregon
			 Quarterly Combined Tax Report. This return shall be filed by the U.S. Office of
			 Personnel Management within 30 days after the end of each quarterly payroll
			 period.
(4) Payment of withholding
			 trust funds shall be made at the same time the quarterly return is filed.
(5) Reporting shall be done in a
			 medium that complies with state reporting standards applicable to employers in
			 general. For Oregon Department of Revenue purposes, reporting shall be required
			 on the withholding portions of the Oregon Quarterly Combined Tax Report. This
			 return shall be filed by the U. S. Office of Personnel Management within 30
			 days after the end of each quarterly payroll period.
(6) Payment of withholding trust funds shall
			 be made at the same time the quarterly return is filed. Payment shall be
			 accompanied by appropriate identifying documentation, i.e., Form OTC (Oregon
			 Tax Coupon).
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.196
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0330 - Semiannual Reports and Payments

Current through Register Vol. 63, No. 7, July 1, 2024
Purposes of semiannual reporting the calendar year will be
				divided into two six-month periods; the first period being January through June
				with the return and any payment due on or before July 31; the second period
				being July through December with the return and any payment due on or before
				January 31 of the following year. No other semiannual reporting periods will be
				permitted. Employers reporting on the semiannual method must file an annual
				report before February 16 as required of all employers under ORS
				316.202(2). No
				semiannual returns will be allowed for periods after December 31, 1989. All
				returns due on, and subsequent to, January 1, 1990, shall be reported on the
				Oregon Quarterly Combined Tax Report form.
For rules governing annual agricultural filing, see OAR
				150-316.202(4).
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.197
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0334 - Withholding Tax Payment Requirements for Agricultural Employers

Current through Register Vol. 63, No. 7, July 1, 2024
An employer of agricultural employees is required to pay Oregon
				taxes withheld at the same time as federal tax is deposited. Federal tax is the
				sum of withholding, FICA (social security) and Medicare
				taxes.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.197
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0336 - Employee's Rights

Current through Register Vol. 63, No. 7, July 1, 2024
Recourse against an employer in regard to taxes on wages
				withheld and reported, but not paid to the Department of Revenue, is
				exclusively that of the state. An employe's rights as to any such tax withheld,
				reported and unpaid are those of a tax credit or refund as provided in ORS
				316.187 and OAR
				150-316.187-(A).
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.197
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0345 - Requirement to use Electronic Funds Transfer

Current through Register Vol. 63, No. 7, July 1, 2024
(1) An employer required to make payment of
			 Oregon combined payroll taxes and assessments under ORS
			 316.162 through
			 316.216 shall do so by
			 electronic funds transfer (EFT) if the employer is required to make federal
			 payroll tax payments electronically.
(2) A taxpayer disadvantaged by the
			 requirement to pay by EFT may request an exemption. The request must be in
			 writing and sent to the address for EFT registration. The request must explain
			 why the requirement to pay by EFT is a disadvantage to the taxpayer. An example
			 of circumstances where the requirement is a disadvantage to the taxpayer is
			 when the taxpayer's bank or the bank of the taxpayer's payroll service is
			 unable to provide the service. Requests for an exemption will be evaluated on a
			 case by case basis. If granted, the exemption will be for a period of 12
			 months, during which the taxpayer is expected to make arrangements to comply
			 with the requirement to use EFT. The department will grant only one exemption
			 period to a taxpayer.
(3) An
			 exception to paying by electronic funds transfer is explained in Oregon
			 Administrative Rule 150-316.191. The exception is available if this payment
			 method will cause an undue burden to the employer. Additionally, an employer
			 with limited activity in Oregon that is required to pay federal payroll taxes
			 by electronic funds transfer need not do so for Oregon tax if the total of the
			 annual payments to Oregon will not exceed $1,000.
(4) Employers not meeting the requirement to
			 pay by EFT may voluntarily do so by completing and submitting to the department
			 an application for either ACH Debit or ACH Credit EFT. Applications can be
			 requested from the department.
(5)
			 After beginning to make payments electronically, a volunteer may discontinue
			 electronic payments by sending a written request to stop paying by EFT. The
			 request must be sent at least 30 days prior to the date the volunteer wishes to
			 stop paying by EFT. If the volunteer has not reached the then current mandate
			 threshold, the department shall allow the employer to discontinue electronic
			 payments. The volunteer shall continue to make payments by EFT until 30 days
			 after sending the request to the department or the volunteer receives notice
			 from the department agreeing to the discontinuance, whichever occurs
			 earlier.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.198
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0347 - Electronic Funds Transfer. Payroll taxes and corporation estimated income and excise taxes not combined in determining mandate. Payments to be included.

Current through Register Vol. 63, No. 7, July 1, 2024
(1) For the purpose
			 of determining whether payment of combined quarterly payroll taxes and
			 assessments is required to be made by electronic funds transfer (EFT), only the
			 payments for related business activities shall be combined. The employer will
			 not add combined payroll taxes paid with corporate income or excise taxes when
			 making the determination. The employer will include combined payroll tax
			 billing payments and amended payroll payments when making the
			 determination.
(2) For the
			 following examples, assume the current mandate threshold above which employers
			 are required to pay by EFT is $1 million of annual payments.
Example 1
:
Business A is an
			 insurance company. The business has registered twice with the department to pay
			 by EFT, once for their employees' payroll tax payments and once for their with
			 holdings on insurance payments to claimants. Each registration is under its own
			 department Business Identification Number. Business A has annual deposits of
			 combined quarterly payroll taxes and assessments under ORS
			 316.197 totaling $900,000 based
			 on their status as an employer. Business A also pays withholding totaling
			 $150,000 annually based on payments to their insurance claimants. Business A
			 would not be mandated to pay by EFT.
Example
			 2
:
Business B is a retail chain. Business B has
			 registered with the department three times. Each registration is under its own
			 department Business Identification Number. Business B has registered once for
			 their auto parts stores, once for their apparel stores and once for their
			 restaurants. Payments of combined taxes and assessments are $280,000, $450,000
			 and $600,000 respectively. Business B would be mandated to pay by EFT because
			 the payments made separately for each of their registrations are for payment of
			 taxes and assessments based on their employee payroll.
Example 3
:
Business C is an
			 incorporated grocery retailer. Annually, the business pays combined payroll
			 taxes and assessments based on wages of its employees totaling $900,000
			 Additionally, Business C annually pays $400,000 in corporate excise taxes.
			 Business C is not mandated to pay by EFT because payment of corporate excise
			 taxes and payment of combined employer payroll taxes are unrelated, even though
			 the taxes are paid under the same business identification number.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0355 - Withholding: Payment and Reports

Current through Register Vol. 63, No. 7, July 1, 2024
It is the responsibility of a new employer to register with the
				department. A registration number must be assigned by the department for use in
				its administration of the income tax withholding, transit payroll, and
				statewide transit tax laws. Employers must use the registration number on all
				reports and payments filed with the department which are for tax programs on
				the Oregon Quarterly Combined Tax Report and the Statewide Transit Tax Report.
				A registered employer must submit a report for each reporting period, even
				though the employer may not have had any payroll during that period. Failure by
				an employer to obtain remittance forms will not constitute an excuse for
				failure to report total compensation paid and to remit the tax withheld within
				the time required by law. This responsibility ceases only after the employer
				notifies the department that the employer no longer has employees subject to
				income tax withholding, transit payroll, or statewide transit
				taxes.
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  316.202
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0357 - Waiver of Termination Reports

Current through Register Vol. 63, No. 7, July 1, 2024
For the purposes of waiver of termination reports, the
				Department of Revenue adopts the successor-in-interest definition as found in
				Employment Division OAR 471-031-0140, Filed 12-23-77 and Effective
				1-1-78.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.202
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0359 - Withholding: Annual Report by Employer

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Definitions. As used in this rule:
(a) "Employer" has the meaning given that
			 term in ORS 316.162 and also includes
			 lenders, sureties, and other persons subject to withholding and reporting
			 requirements under ORS
			 316.169.
(b) "Payer" has the meaning given that term
			 in ORS 316.189(1)(g).
(c) "Payroll service provider" is any person
			 that prepares payroll tax returns on behalf of another person for
			 remuneration.
(d) "Periodic
			 payment" has the meaning given that term in ORS
			 316.189(1)(h).
(e) "W-2" means the federal Form W-2 required
			 to be filed under
			 26 USC §
										6051 with the addition of the information
			 required under section (3) of this rule.
(f) "Wages" has the meaning given that term
			 in ORS 316.162.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0361 - Combined Reports and Statewide Transit Tax Reports: Agricultural Employers

Current through Register Vol. 63, No. 7, July 1, 2024
(1) If an
			 agricultural employer is subject to a tax program (in addition to withholding
			 tax) for example, Tri-Met or Lane Transit tax, the employer is required to file
			 the Oregon Combined Payroll Tax Report quarterly. The withholding portions of
			 the Oregon Combined Payroll Tax Report may still be filed annually on Form WA.
			 The annual agricultural return is due by January 31 of the following
			 year.
(2) An agricultural employer
			 subject to the statewide transit tax must file the Statewide Transit Tax Report
			 annually regardless of subjectivity to any other tax program.
Publications: Contact the Oregon Department of Revenue for
				  information about how to obtain a copy of the publication referred to or
				  incorporated by reference in this rule pursuant to ORS
				  183.360(2) and
				  ORS 183.355(1)(b).
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  316.202
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0370 - Liability for Unpaid Withholdings

Current through Register Vol. 63, No. 7, July 1, 2024
(1) It is the employer's duty to hold in
			 trust any amount of income tax withholding and statewide transit tax withheld
			 from employee wages and to assume custodial liability for amounts to be paid to
			 the department. Any employer who fails to pay the tax when due is subject to
			 penalties as provided in ORS Chapter 314, the same as any other taxpayer who
			 fails to file a return or pay a tax when due.
(2) If a corporation or partnership is
			 absorbed by another corporation or partnership in a statutory merger or
			 consolidation, the resulting entity is regarded as the same employer as the
			 absorbed entity. The new entity is liable for payment of income tax and
			 statewide transit taxes withheld.
(3) If a corporation or partnership fails to
			 file returns, or to pay the tax withheld when due, any or all officers,
			 members, and employees who are responsible for exercising the duties of an
			 employer may be held personally responsible for the returns and payments
			 together with any interest and penalties due. Whether the person has actually
			 exercised the duties or not is immaterial.
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  316.207
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0372 - Officer Liability: Joint Determination of Liability Conference

Current through Register Vol. 63, No. 7, July 1, 2024
(1) If one or more
			 of the persons who may be held liable under ORS
			 316.162 to
			 316.212 or ORS
			 320.550 appeals an assessment of
			 unpaid income tax withholding or statewide transit tax, a joint conference may
			 be required by the department. It is the department's policy to notify all
			 persons against whom liability may be asserted to attend the joint
			 conference.
(2) If any of the
			 persons notified fail to appear at the conference, the department may proceed
			 with the conference.
(3)
			 Notification of the conference may be mailed to each person against whom the
			 department may assert liability. Mailing may be made by regular mail unless the
			 person notified has requested that mail be sent certified.
(4) A finding at the conference that a person
			 or persons are liable does not preclude a later finding that other persons are
			 also liable.
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  316.207
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0380 - Withholding Penalties

Current through Register Vol. 63, No. 7, July 1, 2024
See ORS
				305.228,
				305.990,
				305.992,
				314.400,
				314.410,
				314.440,
				314.991,
				316.992 and the corresponding
				rules for provisions regarding penalties, misdemeanors, and jeopardy
				assessments applicable to income tax withholding, statewide transit tax and
				associated reports.
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  316.212
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0385 - Nonresident Alternate Filing

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 Out-of-state employers may elect an alternate method of filing, reporting or
			 calculating tax liability for payroll earned in Oregon by nonresident employees
			 for a payroll period not to exceed 200 days in one calendar year.
(2) Notice of election of alternative method
			 shall be given on Oregon Department of Revenue form, Application for
			 Alternative Filing Method for Temporary Employers, available from Oregon
			 Department of Revenue, 955 Center Street, NE, Salem OR 97310.
(3) The Oregon Department of Revenue shall
			 furnish the employer with Oregon Withholding Tax forms and instructions for
			 filing and paying tax. The employer shall remit payment(s) and file completed
			 Oregon quarterly combined tax reports as required by ORS
			 316.168 and
			 316.197.
(4) An employer electing the alternative
			 method of withholding shall notify its employees of such election at the time
			 withholding is made.
(5) If a
			 qualifying nonresident employee files a personal income tax return under the
			 allowed alternative method, the return also serves as a closing agreement. The
			 amount of withholding is considered to be the amount of income tax owing for
			 the tax year and is not subject to change by the taxpayer or the department
			 unless it is determined that the taxpayer was not a "qualifying nonresident
			 employee" while working for the nonresident employer.
(6) A nonresident employee who is working for
			 an out-of-state employer which elects the alternative method under this rule,
			 may elect to report and pay personal income tax on income earned by the
			 employee in connection with the employee's performance of temporary services
			 within this state in the same manner as any other nonresident.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.216
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0390 - Deductions Allowed on Either the Inheritance Tax Return or the Fiduciary Income Tax Return

Current through Register Vol. 63, No. 7, July 1, 2024
Certain deductions may not be taken on both the Oregon
				inheritance tax return (Form IT-1) and the Oregon fiduciary income tax return
				(Form 41). See OAR 150-118.010(2) for details.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.272
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0395 - Tax Treatment of Unincorporated Organization

Current through Register Vol. 63, No. 7, July 1, 2024
Except as otherwise provided by statute, regulations under
				Internal Revenue Code Section 7701 that allow unincorporated entities to elect
				to be classified as corporations or partnerships for federal tax purposes shall
				also be effective for Oregon tax purposes.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.277
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0402 - Oregon Qualified Trust Tax Return

Current through Register Vol. 63, No. 7, July 1, 2024
(1) General Rule. A trustee who has met
			 certain conditions set forth in IRC Section 685, and has elected to file
			 returns as a qualified funeral trust for federal purposes, must file an Oregon
			 Form 41 (Oregon Fiduciary Income Tax Return) as a resident funeral
			 trust.
(2) Filing requirements. The
			 trustee may file a single, composite Oregon resident funeral trust return for
			 some or all trusts for which the trustee has filing responsibility, including
			 trusts that had a short tax year.
(3) Computation of Tax. When filing a
			 composite return, the trustee must compute the tax separately for each trust
			 and enter the total on the form. If an individual trust would require a tax
			 rate above the minimum tax rate, the trustee must attach a schedule showing how
			 the Oregon tax is computed for each trust.
(4) Due Date. The Oregon resident funeral
			 trust return is due the 15th day of the fourth month after the close of the tax
			 year.
(5) Effective Date. The
			 provisions of this rule apply to tax years beginning on or after January 1,
			 2004.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.282
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0415 - Accumulation Distribution Credit for Oregon Taxes Paid by Trust During Income Accumulation Years

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The
			 accumulation distribution credit is determined by calculating the amount of tax
			 that would have been paid by the trust if the distribution had been made in the
			 year the income was earned, and then subtracting that amount from the tax that
			 the trust actually paid in that year. The total available credit is distributed
			 to the beneficiaries pro rata.
(2)
			 Trusts, whose Oregon taxable income in the year of income accumulation included
			 capital gains that were not part of its distributable net income (DNI), must
			 determine the amount of Oregon tax paid on ordinary income to arrive at the
			 maximum Oregon tax credit available to the beneficiary. For purposes of this
			 computation, the percentage of Oregon taxable income representing capital gains
			 not included in DNI must be determined.
Example
			 1
:
This example is a continuation of the first
			 example in OAR 150-316-0575. A review of the facts in that example would be
			 helpful. Based on the facts in the example in OAR 150-316-0575, the maximum
			 credit available to the beneficiary for the Oregon tax paid by the trust is
			 calculated as follows: [Example not included. See ED.
			 NOTE.]
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0420 - Taxable Income of Nonresident Estate or Trust

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The determination of the taxable income
			 of a nonresident estate or trust differs from that of a nonresident individual
			 in that there is no provision for proration of items of income, deductions or
			 exemptions. Taxable income must be determined by first recomputing the
			 fiduciary's net taxable income under the Internal Revenue Code using only those
			 items of income, gain, loss and deductions derived from or connected with
			 sources in Oregon, including the full amount of the personal exemption
			 allowable in determining federal taxable income. This computation may be made
			 on a federal Form 1041 and accompanying schedules if they are clearly marked as
			 state schedules. Regardless of the form of the computation, a copy of the
			 federal Form 1041, and all accompanying schedules, as filed with the Internal
			 Revenue Service must be attached to the Oregon Fiduciary Form 41.
(2) To arrive at the fiduciary's Oregon
			 taxable income, the recomputed federal net taxable income, limited to items
			 derived from or connected with sources in Oregon, is increased or decreased by
			 the "fiduciary adjustment" provided in ORS
			 316.287 and the transitional
			 adjustment, if any, provided for in ORS
			 316.047. The "fiduciary
			 adjustment" is computed in the same manner as that used for resident estates or
			 trusts except that only items of income, gain, loss and deductions that are
			 derived from or connected with sources in Oregon and a portion of any accrued
			 federal income tax liability or refund are included in the computation. The
			 amount of each federal income tax item of the fiduciary adjustment is computed
			 by multiplying the accrued liability or refund by the percentage that the
			 recomputed federal net income from Oregon sources bears to the federal net
			 taxable income from all sources. Both factors in this computation must include
			 only those items taken into account in determining net taxable income of the
			 tax year to which the liability or refund applies.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.307