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E1: 07Y: P07810 W-2 Local school tax for Multnomah County Tuition-Free For Preschool (Doc ID 2806089.1)

Last updated on SEPTEMBER 10, 2021

Applies to:

JD Edwards EnterpriseOne US Payroll - Version 9.2 and later
Information in this document applies to any platform.

Symptoms

On November 3, 2020, Multnomah County voters approved a measure to establish a tuition-free preschool program. This program is fundedby a personal income tax, which went into effect January 1, 2021. Preschool For All (PFA) will give 3 and 4 year olds in Multnomah County access to free, high-quality, developmentally appropriate, culturally responsive preschool experiences. The program is slated to grow over time, increasing the number of children and families that it serves each year. Families will be able to apply for slots in early 2022 and preschoolers will begin learning in September of 2022. All families in Multnomah County will be eligible to apply and families who currently have the least access to high-quality preschool will be prioritized for the first-available slots.The PFA program is funded by a personal income tax of1.5% on taxable income over $125,000 for individuals and $200,000 for joint filers, and an additional 1.5% on taxable income over $250,000 for individuals and $400,000 for joint filers. The rate will increase by 0.8% in 2026. Residents of Multnomah County will have 100% of their Oregon Taxable Income subject to the tax thresholds.

Update from Vertex on 07/15/21, Vertex indicates programming in the software is current on the way to support this tax.  Please be on the look out for new few monthly update from Vertex.
 


The employer must provide the employee with a Form W-2 by January 31st following year end. The employer should report wages and personal income tax withheld in the local wages and local income tax boxes on the form, using locality name 'œMULT'.

STEPS:

  1. Setup an employee that live and work in Multnomah County.
  2. Run payroll to create history for the new tax type.
  3. Run the P07810 year end build for employee from step 1 above
  4. confirmed that new tax type for Multnomah county tax is not on the local box of the W-2

 

Changes

 New leg/reg https://www.multco.us/dchs/preschool-all

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References

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