WS: 07: Vertex April 2018 Monthly Update and Oregon Statewide Transit Tax

(Doc ID 2389365.1)

Last updated on APRIL 20, 2018

Applies to:

JD Edwards World U.S. Payroll Processing - Version A9.4 and later
Information in this document applies to any platform.

Goal

The 2017 Oregon Legislature passed House Bill (HB) 2017, which included the new statewide transit tax. Parts of HB 2017 related to the statewide transit tax were amended in the 2018 session. The amendment changed the definition of wages to match the definition of state income tax withholding rules.

On July 1, 2018, employers must start withholding the tax (one-tenth of 1 percent) from:
• Wages of Oregon residents (regardless of where the work is performed).
• Wages of nonresidents who perform services in Oregon.

Employees who aren't subject to regular income tax withholding due to high exemptions, wages below the threshold for income tax withholding, or other factors are subject to statewide transit tax withholding. Oregon residents who perform services outside of Oregon can ask their out-of-state employer to withhold the tax from their wages as a courtesy—similar to income tax withholding. However, we can't require out-of-state employers to do so, as they're outside Oregon's taxing jurisdiction.

Solution

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