Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0235 - Withholding: Basis of Amount Withheld

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Remuneration includes merchandise,
			 stocks, bonds, room, board, or other consideration passing to the employee in
			 payment for services.
(2) The cash
			 value must be based upon sound principles and the department reserves the right
			 to determine standard valuations for such items as meals, lodging, etc. If room
			 is furnished in addition to board, no additional value will ordinarily be
			 placed upon the room. If room and board are furnished at hotels, resorts or
			 lodges, or if a room only, an apartment, a house or any other consideration is
			 provided, the value, for income tax withholding and statewide transit tax
			 purposes, will be the actual value of this remuneration. (Living quarters or
			 meals furnished to the employee for the convenience of the employer are
			 excluded from income pursuant to section
			 119 of the IRC and the regulations
			 pertaining thereto.)
(3) Amounts
			 paid as reimbursable expenses to an employee are not subject to income tax
			 withholding or statewide transit tax; however, such payments must be identified
			 either by making a separate payment or by specifically indicating the separate
			 amount where both wages and reimbursement of expenses are made in a single
			 payment. If an employee receives a definite weekly, monthly, or annual salary,
			 withholding for income taxes and statewide transit taxes is required upon the
			 entire amount even though the amount may be fixed by including an estimate of
			 expenses which will necessarily be incurred by the employee on behalf of the
			 employer. Only reimbursement based upon actual expenses is exempted from income
			 tax withholding and statewide transit tax. Sickness disability benefits and
			 other disability pensions paid by an employer to an employee are emoluments
			 unless they fall within exemptions of sections
			 104 to
			 106 of the IRC.
(4) Where an employer-employee relationship
			 exists between spouses in a marriage, the employing spouse must withhold income
			 taxes and statewide transit taxes. Sums received by unemancipated minors which
			 are not gifts, but compensation for bona fide personal services rendered to
			 parents, require withholding for income taxes and statewide transit taxes.
(5) Withholding for income taxes
			 and statewide transit taxes is required from distributions from a deferred
			 compensation plan as defined in IRC 457 or a nonqualified plan under IRC 403 if
			 the contributions to the plan or payments from the plan are wages.
(6) Wages due but not yet paid at the date an
			 employee dies are not considered wages and are not subject to withholding for
			 income taxes or statewide transit taxes.
(7) Withholding for income taxes and
			 statewide transit taxes is required from accrued vacation pay, even though
			 disbursed after termination of employment.
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 &
				  320.550
Statutes/Other Implemented: ORS
				  316.162 &
				  320.550