EMPLOY_TAX_docs_2006CombReporting by jizhen1947


									Oregon Combined                                                                        2006
Payroll Tax Report
                                                                     Oregon Department of Revenue
                                                                    Oregon Employment Department
                                              Oregon Department of Consumer & Business Services

                                                                         How to ensure
                     Forms and Instructions                            that your report is
                     For Oregon Employers                               processed timely
                                                                     ¸ Do you use a tax preparer?
                     — FORMS ORDER REQUEST                             If so, the preparer may
                     — FORM 013                                        need this booklet to file
                       CHANGE IN STATUS REPORT                         your reports.
                                                                     ¸ Double-check your math.
                     — FORM WR
                       OREGON ANNUAL WITHHOLDING                     ¸ When sending a payment,
                       TAX RECONCILIATION REPORT                       you must include an OTC
                                                                       with your Form OQ.
                                                                     ¸ If you are subject to a
                                                                       program and you have no
                                                                       payroll or subject hours
                     2006 Oregon Combined Tax Payment Coupons          worked, enter a -0- for
                     (Form OTC) are not in this booklet. They are      that program.
                     sent separately to employers.                   ¸ File electronically. See
                                                                       page 6 for details.

                       Oregon Department of Revenue
                       955 Center Street NE
                       Salem OR 97301-2555

150-211-155-2 (Rev. 12-05)
                                          TABLE OF CONTENTS
   Filing Due Dates for Quarterly Reports, Where to File and Pay ............................................ 3
   New Information................................................................................................................... 4
   Legislative Update .................................................................................................................. 5
   Important Information .......................................................................................................... 6
   Required Forms..................................................................................................................... 8
   Filing the Combined Quarterly Tax Report ........................................................................... 9
   Payment Instructions........................................................................................................... 10
   Guidelines for Oregon Withholding Payment Due Dates..................................................... 11
   Penalties and Interest ............................................................................................................ 12
   Quarterly Tax Report (Form OQ) Instructions ..................................................................... 13
   Employee Detail Report (Form 132) Instructions ................................................................ 16
   Schedule B Instructions ........................................................................................................ 16
   Unemployment Insurance (UI) Tax Information .................................................................. 17
   Withholding Tax Information ............................................................................................... 19
   Transit District Excise Tax Information ............................................................................... 21
   Workers’ Benefit Fund Assessment Information .................................................................. 23
                    Use the numbers below if you need help or more information.
State withholding, TriMet, LTD taxes                                     State unemployment insurance tax
Salem:         503-945-8091 or 800-356-4222
TTY users:     503-945-8617                                              Salem:             503-947-1488
Internet:      www.oregon.gov/DOR                                        TTY users:         711
e-mail:        payroll.help.dor@state.or.us                              Internet:          www.oregon.gov/EMPLOY/TAX
Reporting forms:                                                         e-mail:            taxinfo@emp.state.or.us
 Oregon Quarterly Tax Report–Form OQ                                     Reporting forms:
 Oregon Schedule B                                                        Oregon Quarterly Tax Report–Form OQ
 Oregon Annual Withholding Tax Reconciliation                             Employee Detail Report–Form 132
   Report–Form WR
 Change in Status Report–Form 013                                         Change in Status Report–Form 013
                                                                          Order Request form
Workers’ Benefit Fund assessment
OREGON DEPARTMENT OF CONSUMER                                            Payments for all tax programs
& BUSINESS SERVICES (DCBS)                                               Payment coupons (Form OTC) are mailed sepa-
Assessment questions:                                                    rately to employers. You must include one with each
Salem:        503-378-2372                                               payment.
TTY users: 503-378-2372
Internet:     www.oregon.gov/DCBS/FABS/                                  To order OTCs call:
              wbf.shtml                                                  Salem: 503-945-8091 or 503-378-4988
e-mail:       wbfassess.fabs@state.or.us
Subjectivity questions:                                                  Other Internet addresses
Salem:        503-947-7815
Internet:     www.oregon.gov/DCBS/FABS/                                  Oregon Business Guide is available at:
              wbf.shtml                                                  www.oregon.gov/SOS
e-mail:       workcomp.questions@state.or.us
Reporting form:                                                          Federal payroll tax and FUTA forms are available
 Oregon Quarterly Tax Report–Form OQ                                     at: www.irs.gov

                                                                                                                                        Page 2
       Quarter                           Quarter Ending Date                                 Report Due Date
1st — Jan–Feb–Mar                          March 31, 2006                                     April 30, 2006
2nd — Apr–May–Jun                            June 30, 2006                                    July 31, 2006
3rd — Jul–Aug–Sep                      September 30, 2006                                  October 31, 2006
4th — Oct–Nov–Dec                       December 31, 2006                                  January 31, 2007

  If the due date is on a weekend or holiday, the report is due the next working day.

                         WHERE TO FILE AND PAY

       All reports in                                                 Mail to:
       Paper form                                                        Oregon Department of Revenue
                                                                         PO Box 14800
       All payments
                                                                         Salem OR 97309-0920
        Form OTC
         (see page 8)

     All reports on                                                   Mail to:
    Magnetic Media                                                       Tax Section, Room 107
    (cartridge or diskette                                               Employment Department
      in federal format)                                                 875 Union St NE
                                                                         Salem OR 97311-0030

    All reports using
   Employment Dept.                                                      Send electronically
         (see page 6)

        Form WR                                                       Mail to:
   Annual Withholding Tax                                                Oregon Department of Revenue
    Reconciliation Report                                                PO Box 14260
                                                                         Salem OR 97309-5060

              In compliance with the Americans with Disabilities Act (ADA), this information is available
                  in alternative formats by calling the Oregon Department of Revenue at 503-378-4988, or
               1-800-456-4222 (within Oregon) or the Oregon Employment Department at 503-947-1488.

                                                                                                               Page 3
                                     NEW INFORMATION
Tax rates                                                   Single or married filing separately.......$1,770
• The Workers’ Benefit Fund (WBF) assessment                 Head of household ...............................$2,885
  rate is reduced to .030.                                  Married filing jointly............................$3,545
• The taxable wage base for unemployment in-                Qualifying widow(er)...........................$3,545
  surance is $28,000.
• Tri-County Metropolitan Transportation District         Nonresident employees with wages greater than
  (TriMet) tax rate is .006418.                           their standard deduction amount are required to
• Lane Transit District (LTD) tax rate remains at .006.   file an Oregon nonresident income tax return. Non-
                                                          resident employees with Oregon wages less than
Oregon withholding tax tables                             their standard deduction still may request that you
Oregon withholding tax tables will remain the same        withhold tax; usually they have additional Oregon
for 2006. Continue using your Oregon Withholding          income from other sources.
Tax Tables booklet (150-206-430) dated March
2003. To request a copy, please call 503-945-8091.        Adjustments to WBF assessment reports
The tables also are available on the Internet at:         New! As a result of changes to administrative
www. oregon.gov/DOR.                                      rules (OAR 436-070-0020) adopted April 1, 2005,
Employers of Oregon nonresidents                          DCBS can no longer initiate or accept adjustments
                                                          to resolve errors, omissions, or discrepancies in
You must withhold Oregon income tax from all              WBF assessment reports or payments for quarters
wages earned by nonresident employees for ser-            that pre-date the current calendar year and three
vices performed in Oregon, unless their Oregon            previous years. The current plus three-year period
earnings for the year will be less than the standard      allowed for adjustments coincides with the period of
deduction amount for their filing status. The Ore-         time for which employers are required to maintain
gon standard deduction amounts for tax year 2005          WBF assessment-related payroll records.
are as follows:

                                                                                                               Page 4
                                  LEGISLATIVE UPDATE
Changes in unemployment                                   Dependent care assistance
insurance (UI) tax for 2006
                                                          House Bill 2950 amended the exclusion of certain
Most of these changes will go into effect as of           fringe benefits. “Wages” does not include any pay-
January 1, 2006. If you have any questions or need        ment made to, or on behalf of, an individual or any
further information please contact the Employment         of the individual’s dependents on account of depen-
Department Tax Section.                                   dent care assistance furnished pursuant to a program
SALEM: 503-947-1488                                       that meets the requirements of section 129(d) of the
TTY users: 711                                            Internal Revenue Code, to the extent the assistance
Internet: www.oregon.gov/EMPLOY/TAX                       does not exceed the earned income limitation in sec-
E-mail:      taxinfo@emp.state.or.us                      tion 129(b) of the Internal Revenue Code.
Or you may contact the local Employment Depart-           Oregon stabilization
ment Tax Office in your area.
                                                          During 2005, Governor Ted Kulongoski introduced,
Independent contractor definition changed                  and the legislature passed, House Bill 2127. This
Senate Bill 323 amended the definition of indepen-         bill reduces unemployment insurance taxes by an
dent contractor for the Department of Revenue and         average of 12 percent, serves as a tool to retain and
the Employment Department. More details regard-           recruit new business to Oregon, and helps stabilize
ing the standards that must be met for a person who       funding for assistance services for both businesses
provides services for remuneration to be considered       and job seekers provided by the Employment De-
an independent contractor are available on the In-        partment. Because employer tax rates are based on
ternet at: www.oregon.gov/EMPLOY/TAX. Or                  each employer’s own experience with the Unem-
visit the new independent contractor Web site at:         ployment Insurance system, not every employer
www.OregonIndependentContractors.org.                     will see a decrease in their tax rate, but most will.
                                                          The reductions contained in House Bill 2127 will be
Penalties for illegal tax rate manipulation               effective for taxes paid starting in 2007.
Under House Bill 2124, a person (employer) may
not engage in or advise another person (employer)         Other new unemployment insurance tax
to engage in activity to transfer or acquire, or at-      information
tempt to transfer or acquire, a trade or business or      • If non-cash remuneration is not carried on the
any portion of a trade or business solely or primar-        employer s payroll, “board” furnished by an
ily for the purpose of obtaining a lower unemploy-          employer as remuneration for services shall have
ment insurance (UI) tax rate. If a person (employer)        a minimum value of 30 percent of the standard
knowingly engages in such activity, the highest UI          CONUS meal rate per day (standard per diem rate
tax rate (currently 5.4 percent) will be assigned to        for the continental United States). The rate per day
that trade or business for the tax year in which the        will be rounded to the nearest dollar. The rate per
activity occurred and for the next three years. How-        month will be thirty times the rounded daily rate. If
ever, if the person (employer) is already subject to        room is furnished in addition to board, no additional
the highest tax rate for the year or if the amount of       value will ordinarily be placed upon the room. If
increase in the tax rate is less than 2 percent, an ad-     room and board are furnished at hotels, resorts, or
ditional penalty tax rate of 2 percent will be added        lodges, or if a room only, an apartment, a house, or
to the calculated tax rate. In addition, if a person        any other consideration is provided, the value for
(employer) advises another person (employer) to             tax purposes will be the fair market value thereof.
engage in this activity, they may be assessed a civil     • There is no longer a specific equipment rental de-
penalty not to exceed $10,000. Criminal penalties           duction to individuals who furnish tools or tools
for engaging in tax avoidance schemes may also              and equipment in addition to labor. Instead, the IRS
be imposed.                                                 “accountable plan rule” for determining reimbursed
Further information is available on the Internet at:        expenses will apply in determining whether those
www.oregon.gov/EMPLOY/TAX.                                  types of expenses are considered wages or not.
                                                                                                          Page 5
                             IMPORTANT INFORMATION
Oregon Department of Revenue, Employment                 Capitalize your report!
Department, and Department of Consumer and
Business Services rules differ. Please read all in-      Extensive testing of our electronic processing
structions carefully. If you have questions, please      equipment has shown that your wage reports are
contact the appropriate agency (see page 2).             read much more accurately if you prepare them
                                                         using capital letters rather than changing cases or
What is considered a filed return                         using lower case. Please help us avoid processing
                                                         errors and unnecessary notices to you by preparing
While there are multiple tax and assessment pro-         your report using CAPITAL LETTERS ONLY!
grams represented on the Oregon Quarterly Tax
report, it is important to note the following filing      Tax tables
requirements for state withholding, Tri-County Met-
ropolitan Transportation District (TriMet), and Lane     Oregon withholding tax tables will remain the same
Transit District (LTD) tax programs that are admin-      for 2006. Continue using your Oregon Withholding
istered by the Oregon Department of Revenue.             Tax Tables booklet (150-206-430) dated March
                                                         2003. To request a copy, please call 503-945-8091.
• Only columns filled in with numerical information       The tables also are available on the Internet at:
  will be considered a filed return for that program.     www. oregon.gov/DOR.
• If you are subject to a specific tax, but have no tax
  to pay for that period, you should enter “0” in the    Reporting hours may differ
  appropriate column.                                    The number of hours reported for UI tax on the
• If you enter something other than a number in a        Wage Detail Report (Form 132) will not necessarily
  specific tax column or leave a specific tax column       equal the number of hours reported for the WBF
  blank, we will conclude you are communicating to       assessment in box 9 on Form OQ (see pages 13–15
  us that you are not subject to that tax and that you   for more information).
  are not filing a return for purposes of that tax.
                                                         Reporting subject wages
Withholding on distribution                              Total wages reported for UI and withholding could
of pensions or annuities                                 be different depending on the subjectivity require-
State withholding on distribution of pensions or an-     ments for each program (see pages 17–20 for more
nuities shall be made with respect to any distribution   information).
for which federal income taxes are to be withheld or
are required to be withheld under Section 3405 of        Easy, free electronic filing
the Internal Revenue Code.                               You can file your quarterly Oregon payroll tax
                                                         report electronically by e-mail, the Internet, or on
Employer new hire reporting program                      diskette. Or, if you have no payroll or subject hours
All Oregon employers are required to report new          to report, you can file by telephone (see page 9).
and rehired employees to the Division of Child
Support within 20 days of date of hire. For infor-       Filing for bankruptcy
mation on the law and the procedures for reporting,      If you file for bankruptcy, you need to notify
contact: Department of Justice                           separately each state agency that administers the
         Employer New Hire Reporting Program             payroll taxes and/or assessments to which you are
         1495 Edgewater St NW                            subject. Despite combined reporting, each agency
         Salem OR 97304                                  manages its own tax program.
         Telephone: 503-378-2868
         Fax: 503-378-2863 or 877-877-7415               Common pay agent
         E-mail: employer.reports@doj.state.or.us        Oregon doesn’t recognize common pay agent
         Web site: www.oregon.gov/DOJ                    reporting.

                                                                                                        Page 6
Oregon identification numbers                        that you file with the Department of Revenue,
                                                    the Employment Department, and the Depart-
Your Oregon business identification number (BIN)
                                                    ment of Consumer and Business Services.
is not the same as your registry number issued by
the Oregon Secretary of State’s Corporation Di-     Keep your records
vision. If you do not know your BIN, contact us
                                                    WBF assessment-related payroll records must be
at 503-378-4988.
                                                    kept for the current and three previous years. All
It is important that you include your BIN on the    other payroll records must be kept at least five
top of all correspondence, returns, and payments    years after filing the required reports.

                                                                                                Page 7
                                     REQUIRED FORMS
If you file using paper, using the forms in this         • Form OTC–Oregon Combined Tax Payment
booklet ensures faster and more accurate process-          Coupon. Form OTCs are mailed separately, by
ing. Failure to use the correct forms or format may        December 31 of each year, to every employer that
result in a penalty (see page 12 for more information      does not pay using electronic funds transfer (EFT).
on penalties).                                             If you need to order additional coupons, write the
                                                           Oregon Department of Revenue, PO Box 14800,
If you use a tax preparer, please check to see if
                                                           Salem OR 97309-0920, or call 503-945-8091 or
the preparer needs this booklet to file your reports.
                                                           503-378-4988. When ordering, tell us how many
Your forms can be sent directly to your tax preparer.
                                                           coupons you need for the remainder of the year.
Fill out the “Change in Status Report” to change
your forms’ mailing address to your tax preparer’s       • Please use blue or black ink. Our equipment can
address for future mailings.                               read only these colors.
Use the Order Request at the back of this booklet        • Please do not use colored paper other than the
to order additional reporting forms or reporting soft-     forms supplied by the agency.
ware. Or you may order forms or software on the
Internet at: www.oregon.gov/EMPLOY/TAX
under “Reporting Options for Oregon Quarterly             NOTE:
Employer Taxes.”                                          Form OQ, Oregon Schedule B, and Form 132
• Do not send photocopies of reports.                     are processed by the Employment Department
                                                          using automated equipment. Separately, Form
• Do not fax your reports.
                                                          OTC and payments are pro cessed by the
These are considered out of format and may result         Department of Revenue. To correctly apply
in penalties.                                             payments, we must receive a Form OTC with
                                                          every payment, including payments made with
Forms needed for reporting                                your Form OQ. Form OTC is not required for
• Form OQ–Oregon Quarterly Tax Report. Use                payments made by EFT.
  this form to report state UI tax, state withholding
  tax, WBF assessment, TriMet, and LTD taxes.
                                                         Other forms
• Oregon Schedule B–State Withholding Tax.
  Use this form only if state income tax withholding     • Form 013–Change in Status Report. Use this
  deposits are required semi-weekly or on a one-           form to report changes in your business. Do not
  banking day basis. File Oregon Schedule B with           use Form OTC or Form OQ to make changes. See
  Form OQ.                                                 the “Change in Status Report” at the back of this
                                                           booklet for detailed instructions. The “Change in
• Form 132–Employee Detail Report. If your busi-
                                                           Status Report” is also available on the Internet at:
  ness is subject to Oregon UI tax, use this form to
  report employee detail. File this form with Form
  OQ. If you have more than 20 employees, order          • Form WR–Oregon Annual Withholding Tax
  additional Form 132s using the Order Request             Reconciliation Report. Use this form to reconcile
  at the back of this booklet. Forms that are incor-       your state withholding account. Form WR is due
  rectly formatted or photocopied may be returned,         February 28 of each year. Form WR is available
  and a penalty may be assessed.                           on the Internet at: www.oregon.gov/DOR.

                                                                                                        Page 8
Who must file                                             any employer to report over the Internet. Because
You must file a Form OQ each quarter:                     it’s Web-based, any employer can report electroni-
                                                         cally regardless of computer type. SETRON is
• As long as you are registered as an active em-         on the Employment Department’s Web site at:
  ployer with Oregon Department of Revenue or            www.oregon.gov/EMPLOY/TAX. Remember
  Oregon Employment Department, even if you had          to print a paper copy of your report to keep for
  no payroll during the quarter. Reimbursing em-         your records.
  ployers and Local Government Employers Benefit
  Trust Fund employers also must file Form OQ.           • Telephone (IVR). If you are an employer who has
                                                          no payroll or subject hours to report for all pro-
• If you have paid individuals (workers, owners,
                                                          grams or for a particular quarter, you can file a “no
  officers) who are subject to Oregon’s workers’
                                                          payroll/no hours worked” report by telephone, 24
  compensation law or who are covered by workers’
                                                          hours a day, 7 days a week. The telephone number
  compensation insurance through personal election,
                                                          is 503-378-3981. Confirmation numbers are not
  even if you have no payroll during the quarter.
                                                          issued. Your report is accepted only at the end
• If you withhold on a distribution of pensions or        of the call.
You must file Form 132:                                  Option specifications
• If you are an employer subject to UI law. Reim-       For reporting-option specifications, call the Em-
  bursing employers and Local Government Em-            ploy ment De part ment at 503-947-1488 (op tion
  ployers Benefit Trust Fund employers also must         3). Options also are available on the Internet at:
  file Form 132.                                         www.oregon.gov/EMPLOY/TAX under: “Report-
                                                        ing Options for Oregon Quarterly Employer Taxes.”
You must file Oregon Schedule B:                         You also may use the order form at the back of this
• If you are required to deposit withholding taxes      booklet.
  on a semi-weekly or a one-banking day basis.
                                                        Annual filing
When to file
                                                        • If you file federal Form 943, you may file your
See page 3 for the report due dates.                      Oregon withholding reports once a year using
                                                          Form WA. Agricultural employers subject to
Filing options                                            unemployment tax, WBF assessment, or transit
Electronic filing is far more efficient, accurate,          tax must file Form OQ in addition to Form WA.
and less time consuming than paper filing. You            Call the Oregon Department of Revenue at 503-
can file electronically by e-mail, the Internet, or by     945-8091 for more information.
telephone.                                              • Employers with exclusively domestic (in-home
• OTTER. You can file by e-mail or diskette using          services) employment may file the Combined
  the computer-based “OTTER” (Oregon Tax Em-              Payroll Tax Reports annually. The annual forms
  ployer Reporting) software program. The software        are sent out by November of each year. Call the
  is free, user friendly, and popular with both large     Oregon Employment Department at 503-947-1488
  and small employers. Your data can be imported          for more information.
  from separate payroll programs directly into the
                                                        Amended reports or adjustments
  electronic reporting format or copied from one
  quarter to the next.                                  To amend data on Form OQ, Schedule B, or
                                                        Form 132. Copy the original report, make the nec-
 You may order OTTER by calling 503-947-1488, by
                                                        essary changes on the copy, clearly write “Amend-
 using the order form in this book, or by downloading
                                                        ed” at the top of the form, write a brief explanation
 the program from www.oregon.gov/EMPLOY/TAX.
                                                        of why you are amending your report, and mail to:
• SETRON. Web-based SETRON (Secure Em-                  Oregon Department of Revenue, PO Box 14800,
  ployer Tax Reporting On-line) reporting allows        Salem OR 97309-0920. Do not use red ink.
                                                                                                       Page 9
To amend a report you filed using OTTER. Make                                    The time period allowable for adjustments to
the necessary corrections to your original report us-                           WBF assessment reports has changed (see page 4
ing the appropriate program. Print a paper copy                                 for details).
of the corrected report, write “Amended” in large
letters at the top of the corrected report, and write                           Failure to file
a brief explanation of why you are amending your
report. Mail the paper copy of your corrected report                            If you don’t file a correct and complete quarterly
to: Oregon Department of Revenue, PO Box 14800,                                 report, you may receive an assessment(s) based on
Salem OR 97309-0920. Do not send your cor-                                      available information. Penalty and interest will be
rected report electronically. Do not use red ink.                               charged on the amount assessed (see page 12).

                                             PAYMENT INSTRUCTIONS
Oregon combined payments                                                        Send payments with Form OTC coupons to:
Use current year OTC coupons. Oregon with-                                          Oregon Department of Revenue
holding tax due dates are the same as the dates for                                 PO Box 14800
depositing federal tax liability (see page 11 for                                   Salem OR 97309-0920
guidelines for due dates). Unemployment insurance                               Do not staple or tape your payment to Form OTC.
(UI) tax, Workers’ Benefit Fund (WBF) assessment,
and transit tax payments are due quarterly.                                     Payment record
• Please use blue or black ink. Our equipment can                               Retain records of payments made to all programs
  read only these colors.                                                       for each quarter for use when you file Form OQ.
• Make your check payable to “Oregon Depart-
  ment of Revenue.”                                                             Electronic funds transfer (EFT)
                                                                                You can make payments for combined payroll taxes
Making your Oregon combined payments
                                                                                using the Oregon Department of Revenue’s elec-
To make sure your payments are correctly applied:                               tronic funds transfer (EFT) program. This program
• Complete and send in a Form OTC with every                                    allows you to make payments using a touch-tone
  payment, when due, including payments made                                    telephone, a secure Internet site, or through your
  with your OQ.                                                                 financial institution.
• Indicate the amount paid to each tax program in                               You must pay your Oregon combined payroll taxes
  the appropriate box. Do not include credits.                                  electronically if you are mandated to pay your fed-
• Enter the quarter in the box to indicate when the                             eral tax liability electronically.
  payroll was paid to employees.                                                If you do not meet the federal requirements for
• When making a payment for more than one quar-                                 mandatory participation in the EFT program, you
  ter, submit a separate coupon for each quarter.                               may participate on a voluntary basis.

                    State Unemployment                     FORM   OREGON COMBINED PAYROLL TAX                             Date Received

                                                       .   OTC      Payment Coupon      150-211-053 (Rev. 10-02)

                    State Withholding                                                                              YEAR          BUSINESS ID NO.
                                                           Enter quarter payroll was paid
                                                       .   to employees: (1, 2, 3 or 4)
                                                                                                                   Make check payable to:
                    TriMet District Excise                 TOTAL PAYMENT (add all the boxes at left)
                                                                                                                   Oregon Department of Revenue
                                                       .                                  .                        PO Box 14800
                                                                                                                   Salem OR 97309-0920
                    Lane Transit District Excise

                    Workers’ Benefit Fund Assessment


                                                                                                                                                   Page 10
A business is required to have an authorization           Your written request must contain the following
agreement filed with the Department of Revenue             information:
before initiating EFT payments. Information and au-
thorization agreements are available on the Internet      • The business name of the employer.
at: www.oregon.gov/DOR or by calling the EFT              • The Oregon business identification number.
help line at 503-947-2017.
                                                          • The nature of the burden.
Alternate payment method
Multi-state employers who believe that federal with-      • The remedy requested.
holding methods create an undue burden for them           • And a proposed effective date of the modified
that is not shared by most other similar employers          withholding method.
may request a different method of withholding tax
payments. You must submit a written request to:           You cannot use an alternative withholding method
        Withholding Manager                               before the Oregon Department of Revenue has
        Oregon Department of Revenue                      approved your request in writing and has desig-
        955 Center Street NE                              nated the effective date of the change. (Refer to
        Salem OR 97301-2555                               ORS 316.191)


  If your total federal              Oregon withholding                                    Payrolls
  tax liability is:                  tax payments are due:                                 paid in:
  • Less than $2,500
    for the quarter         ➛        by the quarterly report due date
                                                                                          Quarter 1
  • $50,000 or less in                                                                    Jan–Feb–Mar
    the lookback period*    ➛        by the 15th of the month following payroll

  • More than $50,000 in
    the lookback period*    ➛        Semi-weekly Deposit Schedule                         Quarter 2
                                 If the day falls on a:    Then pay taxes by:

                                 Wednesday, Thursday,                                     Quarter 3
                                                           the following Wednesday
                                 or Friday                                                Jul–Aug–Sep

                                 Saturday, Sunday,         the following Friday
                                 Monday, or Tuesday
                                                                                          Quarter 4
  • $100,000 in a
    single pay period       ➛          within one banking day

* The lookback period is the twelve-month period that ended the preceding
 June 30. The lookback period for agricultural employers is the calendar year
 prior to the calendar year just ended.

                                                                                                    Page 11
Unemployment insurance tax                                —Form 132–Employee Detail Report,
A late filing penalty may be assessed if Form OQ
or the Employee Detail Report (Form 132) is filed        • Pay all unemployment insurance taxes due.
more than 10 calendar days after the due date, and      The penalty is 1 percent of the employer’s previous
you have received a previous warning. This is in        year’s taxable payroll.
addition to interest due. The late filing penalty is
$6 for each employee reported, with $70 minimum         State withholding and transit taxes
and $1,400 maximum penalty amounts. Incomplete          • You will be charged a 5 percent late payment
reports also may be assessed a similar penalty. If no     penalty on any unpaid tax after the due date of
subject wages are reportable but the report is filed       the payment.
late, a $6 late filing penalty may be assessed.          • You will be charged an additional 20 percent pen-
In addition, if Form OQ or Form 132 are not               alty on any tax due as of the due date if Form OQ
correctly formatted or are incomplete, they may           is filed more than three months late.
be re turned. If the out-of-format report is not        • You will be charged a 100 percent penalty on any
resubmitted before the tenth day following the due        tax due if Form OQs are not filed for three years
date, a penalty may be assessed. To prevent this,         in a row.
send the reports electronically using the OTTER
software the Employment Department provides             Workers’ Benefit Fund assessment
(see page 9).                                           You are subject to a late filing penalty if Form OQ
An additional penalty may be charged to employers       is filed or payment is received more than 10 cal-
who have failed as of September 1 to:                   endar days after the due date. A civil penalty of up
                                                        to $2,000 may be assessed for each violation if the
• File all unemployment insurance tax reports:          payment or Form OQ is not filed timely. Penalties
  —Form OQ–Oregon Quarterly Tax Report,                 will be assessed at 10 percent of the outstanding bal-
                or                                      ance, with a minimum of $50 for each violation.

Unemployment insurance tax                              State withholding and transit taxes
Interest is assessed on unpaid or late paid             You will be charged interest on any remaining tax
un em ploy ment insurance tax. The rate is 1.5          left unpaid after the due date. Employers should
percent per month or fraction of a month after the      not calculate interest due. You will be billed for
payment is due. Payments are due the last day of        interest due on unpaid balances.
the month following the quarter. Interest is assessed
                                                        Workers’ Benefit Fund assessment
if the payment is one day late. Use only unpaid tax
when calculating interest. Do not calculate interest    Interest is assessed on unpaid or late paid Workers’
on previously assessed interest or penalties.           Benefit Fund assessments. The rate of 9 percent
                                                        per year may be charged on all overdue balances.
Use this same calculation for Local Gov ern -           If your account is assigned for collection, you will
ment Employers Benefit Trust Fund participants.          be responsible for the collection agency’s fee. This
Re im burs ing employers should not cal cu late         additional collection fee may amount to as much as
interest. Interest due on unpaid balances is billed.    28 percent of the total dollars collected.

                                                                                                      Page 12
                   QUARTERLY TAX REPORT (Form OQ)
                                      Line-by-Line Instructions
Before you complete Form OQ, review the busi-           OQ columns
ness name, mailing address, Oregon business             In each column, enter the total subject wages paid
identification number (BIN), and federal employer        for each tax program this quarter. If you have ques-
identification number (FEIN) to be sure they are all     tions, refer to the specific program information in
correct. Make corrections on the “Change in Status      this booklet.
Report” included at the end of this booklet.
                                                        In each column, enter the total tax owed to each
The North American Industry Classification Sys-          state program. If any of the amounts are less than
tem (NAICS) code is assigned by the Employment          zero, enter -0-. Do not enter any credit items. Any
De part ment. Cod ing de ter mi na tion is based on     credit in one tax program may only be used in
information you supplied and reflects the primary        that same program. A credit may be used in a
activity for your company in Oregon. If you have        future quarter or refunded by request.
questions regarding these codes, call 1-800-262-
3912, ext. 7-1248 (toll-free within Oregon) or 503-     Column A. Unemployment Insurance (UI)
947-1248.                                               Box 1. Subject wages. This amount must be the
                                                        same as line 1 (total subject wages) on Form 132.
Line-by-line instructions                               Include wages exceeding the taxable wage base for
Number of covered workers for state unem-               UI reporting purposes.
ployment insurance. Complete this section if you        Box 2. Excess wages. Excess wages are wages
are subject to unemployment insurance (UI). If you      above the tax able wage base for the year per
have questions on how to count workers, call 1-800-     person. The taxable wage base for 2006 is $28,000
262-3912, ext. 7-1248 (toll-free within Oregon) or      per employee per year. Reimbursing employers and
503-947-1248.                                           Local Government Employers Benefit Trust Fund
The “monthly number of covered workers” you             participants leave this box blank.
report on Form OQ should include all full-time          Box 3. Taxable wages. Enter box 1A minus box 2A.
and part-time workers who worked or received pay        Reimbursing employers leave this box blank.
subject to unemployment insurance law during the
payroll period which includes the 12th of the month.    Box 4. Tax rate. Use your current year’s UI tax
Some examples include:                                  rate. If you are subject to UI tax and no rate is
                                                        printed, call the Employment Department at 503-
• Daily pay period. Enter the number of workers on      947-1488. Reimbursing employers leave this box
  the daily payroll for the workday nearest the 12th    blank.
  of the month.
                                                        Box 5. Total tax. Multiply box 3A by box 4A.
• Weekly, bi-weekly, or semi-monthly pay period.        Round off to the nearest cent and enter the tax
  Enter the number of workers on the payroll for the    amount. Enter -0- if you had no UI tax this quarter.
  period that includes the 12th of the month.
                                                        Box 6. Tax prepaid this quarter. Enter the amount
• Monthly pay period. Enter the number of workers       of UI tax prepaid or credits used this quarter. Include
  on your monthly payroll.                              any credit amount that may have been overpaid in
• If there were no covered workers during any pay       previous quarters where no refund was requested
  period, enter zero in the appropriate boxes. Do not   or issued.
  leave these boxes blank.                              UI tax payments are due once per quarter on the
Add the numbers for the three months and place the      same day as the tax reports.
sum in the Total (M1 + M2 + M3) box. This total         Box 7. UI penalty and interest owed. Enter the
is used to verify that the automated equipment has      amount of penalty and interest owed if the report
correctly read the monthly entries.                     is late. Figure the penalty amount by multiplying

                                                                                                       Page 13
the number of employees by $6. The minimum                Box 6. Tax prepaid this quarter. Enter the amount
penalty is $70. The maximum penalty is $1,400.            of withholding tax prepaid this quarter. Include any
If there were no employees, the penalty is $5. Late       withholding credits used.
reports are those submitted more than 10 days after       Box 8. Total due. Enter box 5B minus box 6B. If
the due date.                                             the amount is less than zero, enter -0-.
To calculate interest owed, multiply the unpaid tax
owed by .015 for each month or fraction of a month        Column C. Tri-County Metropolitan
after the date the payment is due. Interest is assessed   Transportation District (TriMet)
even if the payment is one day late.                      Box 1. Subject wages. Enter wages paid for work
                                                          done in the TriMet district. Enter -0- if there was no
When calculating interest, use only the amount of
                                                          subject payroll in the district this quarter.
unpaid tax. Do not calculate interest on previously
assessed interest or penalties.                           Box 4. Tax rate. The 2006 TriMet tax rate is
Box 8. Total due. Enter box 5A minus box 6A plus
box 7A. If the amount is less than zero, enter -0-.       Box 5. Total tax. Multiply box 1C by box 4C.
                                                          Round off to the nearest cent and enter the tax
Column B. State withholding                               amount. If you are subject to TriMet but had no tax
                                                          this quarter, enter -0-. Only numerical information
Box 1. Subject wages. Enter total wages subject to
                                                          entered in the TriMet Transit District tax column
income tax (salaries, commissions, and bonuses),
                                                          will be considered a filed return for that program.
paid to Oregon employees this quarter.
                                                          If you enter something other than a number in the
• If you are reporting withholding on pension or          TriMet Transit District tax column or leave that
  annuity distributions, enter the amount of distri-      column blank, we will conclude you are commu-
  butions with Oregon withholding.                        nicating to us you are not subject to TriMet Transit
• This amount need not match box 1A.                      District tax and you are not filing a return for pur-
                                                          poses of TriMet Transit District tax.
• Enter -0- if you had no subject pay roll this
  quarter.                                                Box 6. Tax prepaid this quarter. Enter the amount
                                                          of TriMet tax prepaid this quarter. Include any
Box 5. Total tax. Enter total Oregon tax withheld         TriMet credits used.
this quarter. Enter -0- if you had subject payroll but
                                                          Box 8. Total due. Enter box 5C minus box 6C. If
no withholding tax to pay this quarter (see page
                                                          the amount is less than zero, enter -0-.
10 for deposit rules). Only numerical information
entered in the state withholding tax column will be       Column D. Lane Transit District (LTD)
considered a filed return for that program. If you
enter something other than a number in the state          Box 1. Subject wages. Enter wages paid for work
withholding tax column or leave that column blank,        done in the Lane Transit District. Enter -0- if there
we will conclude you are communicating to us you          was no subject payroll in the district this quarter.
are not subject to state withholding tax and you are      Box 4. Tax rate. The 2006 LTD tax rate is .006.
not filing a return for purposes of state withholding      Box 5. Total tax. Multiply box 1D by box 4D.
tax. If you deposit:                                      Round off to the nearest cent and enter the tax
• Quarterly–complete only box 5B.                         amount. If you are subject to LTD but had no tax
                                                          this quarter, enter -0-. Only numerical information
• Monthly–complete boxes on line 15 (M1, M2,
                                                          entered in the Lane Transit District tax column will
  and M3) on Form OQ. Add boxes and enter the
                                                          be considered a filed return for that program. If you
  total into box 5B. Note: Box 5B and line 15 must
                                                          enter something other than a number in the Lane
  total the same amounts.
                                                          Transit District tax column or leave that column
• Semi-weekly or one-banking day depositors–              blank, we will conclude you are communicating to
  complete and file Oregon Schedule B. Enter the           us you are not subject to Lane Transit District tax
  total in box 5B. Note: Box 5B and Schedule B            and you are not filing a return for purposes of Lane
  total must be the same amount.                          Transit District tax.

                                                                                                        Page 14
Box 6. Tax prepaid this quarter. Enter the amount       Include a payment coupon (Form OTC) when
of LTD tax prepaid this quarter. Include any LTD        you mail your check.
credits used.
                                                        Note: You cannot use Form OQ to transfer cred-
Box 8. Total due. Enter box 5D minus box 6D. If         its between programs.
the amount is less than zero, enter -0-.
                                                        • Credit applied to another program:
Workers’ Benefit Fund (WBF) assessment                     Send a written request along with a copy of Form
Box 9. Total all hours worked by all paid indi-           OQ to the agency that handles the program that
viduals (workers, owners, officers) subject to            has the credit.
Oregon’s Workers’ Compensation law or covered by          Include your account name, BIN, tax program,
workers’ compensation insurance through personal          quarter, and year where the credit exists. Give the
election. Enter the total hours rounded down to the       same information for where you want the credit
nearest whole (no fractions or decimals). (Note:          applied. Also include any notices or memos you’ve
hours reported for WBF assessment may differ              received about the credit.
from hours reported for UI tax.) If you have no         • Credit refunded:
hours to report for the quarter, enter -0-. More          Send a written request to the agency that handles
detail on determining hours worked is available at        the program that has the credit. Include your
www.oregon.gov/DCBS/FABS/wbf.shtml or by                  account name, BIN, the word “Refund,” and the
calling 503-378-2372.                                     amount to refund. Also include any notices or
Box 10. Assessment rate. The current WBF assess-          memos you have received about the credit.
ment rate is .030. Employers contribute one-half of     Box 15. Monthly summary of state withholding
the hourly assessment amount and deduct one-half        tax liability
from workers’ wages.
                                                        This line is for those who are required to deposit
Box 11. Multiply box 9 times box 10. Round down         withholding taxes on a monthly basis. Show the
to the nearest cent. This is the total WBF assessment   amount withheld in each month of the quarter then
due for the quarter. If no assessment is due for the    total the amount withheld during the quarter. The
quarter, enter -0-.                                     total must equal the total withholding tax reported
                                                        in box 5B.
Box 12. Enter the amount of prepaid WBF assess-
ment or WBF assessment credits used this quarter.       Do not include payments made for UI tax, WBF
                                                        assessment, or transit taxes in these boxes.
Box 13. Subtract box 12 from box 11. This is the net    If you deposit only once a quarter, enter the total
WBF assessment amount due for the quarter. This         amount withheld in box 5B.
amount should match the amount you enter in the
                                                        If you are required to deposit withholding on a daily
“Workers’ Benefit Fund Assessment” box on Form
                                                        or semi-weekly basis, do not complete this line. Re-
OTC. If the amount is less than zero, enter -0-.
                                                        port withholding on Oregon Schedule B (see page
Box 14. Total payment due                               9 for determining how often withholding must be
Enter total payment due. Add boxes 8A, 8B, 8C,
8D, and 13. Do not include any credits. Make            Signature
your payment to the Department of Revenue us-           Sign Form OQ on the signature line and include a
ing electronic funds transfer (EFT). Or make your       phone number and the date the form was prepared. A
check payable to “Oregon Department of Revenue.”        signature is required even if you file a -0- report.

                                                                                                     Page 15
                  EMPLOYEE DETAIL REPORT (Form 132)
Complete only if you pay unemployment insurance               wages paid are still reported as subject wages in
tax or reimburse the Employment Department for                column 5.
benefits paid.                                                 Report hours in the quarter worked and wages in
Line 1. Total subject wages. Enter the total subject          the quarter received.
wages for all employees for the quarter. If you use           The number of hours worked subject to unemployment
multiple pages of Form 132, enter the total amount            insurance does not need to equal the number of hours
on page 1 only. This figure (total for all pages) must         reported for Workers’ Benefit Fund assessment.
equal the amount in box 1A on Form OQ.
                                                              Enter -0- for an employee who did not work during the
Column 2. Social Security number. Enter the So-               quarter but received wages (do not leave blank).
cial Security number for each employee reported.              If you need to adjust hours worked in a previous
Column 3. Employee name. Enter the first initial               quarter, file an amended Form 132 for that quarter
and last name of each employee reported.                      (see page 9).
Column 4. Hours worked during this quarter.                   Column 5. Total subject wages paid this quarter.
Enter the number of hours the employee worked in              Wages are reported in the quarter paid to the em-
the quarter. If you do not track hours for a full-time        ployee regardless of when earned. Enter the total
employee, use 520 hours for the report. Do not re-            subject wages paid to each employee during the
port fractions or portions of an hour worked by               quarter regardless of whether the employee’s wages
an individual. Round up any portion of an hour to             exceeded the taxable wage base.
the nearest whole hour.                                       Do not use this report to correct wages for another
                                                              quarter. File an amended Form 132 for that quarter
Report the actual number of hours worked. This
                                                              (see page 9).
is straight time and overtime. Do not report hours
paid for sick leave, vacation leave, or any other             Box 6. Page total. Enter the total subject wages for
hours paid where no work was performed. Even                  all employees reported on the page. Do not include
though these hours are not reported in column 4,              the totals from other pages of this form.

                                              SCHEDULE B
                           Example: How to complete Oregon Schedule B

                        A. Daily Oregon Withholding Tax Liability — First Month of the Quarter

        1      2500 00 8                    15            1600 00 22                    29
        2                9                  16                         23        300 00 30
        3               10                  17                         24               31
        4               11                  18                         25
        5               12          1450 00 19                         26
        6               13                  20                         27
        7        450 00 14                  21                         28
        A. Total Withholding Tax Liability for the First Month of the Quarter . . . . . . . . A   6300 00

Line instructions—Oregon Schedule B                           from your employees during each payroll period.
Complete Oregon Schedule B if you are required                Enter the total tax withheld for each month in boxes
to deposit on a semi-weekly or one-banking day                A, B, and C. Enter the total of all the amounts in box
basis. This form includes a box for every day of the          D. The total should equal the total withholding tax
quarter. Locate the boxes that match your payroll             reported in box 5B on Form OQ. DO NOT ENTER
dates. Enter the amount of Oregon tax withheld                CREDITS.
                                                                                                            Page 16
Subject wages                                            value will ordinarily be placed upon the room. If
                                                         room and board are furnished at hotels, resorts, or
Generally, wages reportable for Federal Unem-
                                                         lodges, or if a room only, an apartment, a house,
ployment Tax Act (FUTA) purposes are reportable
                                                         or any other consideration is provided, the value
for Oregon Unemployment Insurance (UI) tax. All
                                                         for tax purposes will be the fair market value
wages, including draws, are reportable when paid
                                                         thereof. Note: noncash payments for agricultural
to the employee. For example, wages paid April 1,
                                                         and domestic (in-home services) services are not
for work performed in March are reportable in the
second quarter (April–June).
An employee is any person (including aliens             Excluded wages
and minors) employed for pay by any employer            Examples of payments that are not subject under
sub ject to Employment Department law (ORS              unemployment insurance law are:
657.015). This includes contract, casual, or tem-
porary labor.                                           • Payments to a proprietor or the proprietor’s child
                                                          under 18, spouse, or parent.
“Wages” means all compensation for service,
unless specifically excluded by law. Payments           • Payments to a legally responsible and registered
other than cash are reportable at their cash value in     general partner or partners of a Limited Liability
the quar ter in which they are available to the           Partnership (LLP) or to members of a Limited
employee.                                                 Liability Company (LLC).
                                                        • Noncash payments to workers in agricultural or
The following are examples of subject wages:
                                                          domestic (in-home services) employment.
• Payments for services to individuals in the           • Sick pay under workers’ compensation law.
  employ of any type of corporation, except those
  electing to be excluded under the family corpo-       • Closely held family corporations may elect, by
  ration provision (see excluded wages).                  written request, to exclude payments for services
                                                          to corporate officers who:
• Payments for agricultural and domestic (in-home
                                                          —Are directors,
  services) labor by qualified employers.
                                                          —Have a substantial ownership interest in the
• Payments for services to individuals in the                corporation, and
  employ of nonprofit organizations or political
  subdivisions.                                           —Are members of the same family, as parents,
                                                             stepparents, grandparents, spouses, sons-in-
• Payments for services performed in the employ of           law, daughters-in-law, brothers, sisters, chil-
  a church or other religious organization.                  dren, stepchildren, adopted children, or grand-
• Special payment for services, such as commis-              children.
  sions, fees, bonuses, prizes, separation allow-       However, those excluded may be subject to higher
  ances, guaranteed wage payments, vacation, and        FUTA tax.
  holiday pay.
                                                        An election to exclude corporate officers must
• Employee tips reported by the employer pursu-         be in writing and will be effective the first day of
  ant to Section 3306 of the Internal Revenue           the calendar quarter in which it is submitted for
  Code.                                                 approval.
• Board provided to employees as part of their pay
  shall have a minimum value of 30 percent of the       Unemployment insurance tax payments
  standard per diem meal rate within the conti-         UI tax payments are due quarterly in accordance
  nental U.S. The rate per day will be rounded          with the payment instructions on page 10. When
  to the nearest dollar. The rate per month will        there is more owed than taxes, payments are ap-
  be 30 times the rounded daily rate. If room           plied first to legal fees, penalties, and interest. The
  is furnished in addition to board, no additional      remainder is applied to tax owed.
                                                                                                      Page 17
Employer ceases to be subject to UI tax                    Equal opportunity employer
An employer who ceases to have sufficient employ-           The Employment Department is an equal oppor-
ment or payroll subject to ORS Chapter 657 must            tunity agency and does not discriminate in providing
file an application for such a finding by the director       services on the basis of race, color, religion, sex,
of the Employment Department in accordance with            nation of origin, age, disability, political affiliation
ORS 657.415. Such exemption shall continue until           or belief, citizenship, or marital status. Auxiliary
the employer again qualifies as an employer as de-          aids and services are available upon request to dis-
fined in ORS 657.                                           abled individuals. Contact the nearest Employment
Employer account access                                    Department office for assistance.
You can review your unemployment insurance ac-
                                                           Employment offices
count information anytime, day or night, by going to
www.oregon.gov/EMPLOY/TAX on the Internet.                 Information on unemployment insurance tax laws is
Want to know when your last report was posted, what        available by calling these numbers. Call 503- 947-
your tax rate is, or when we received your last UI tax     1488 for the Central Office in Salem. The TTY
payment? It’s all there. Just click on “Your Account       number is 711. Written inquiries may be sent to:
Information Center,” enter the information to regis-       Tax Section, Employment Department, 875 Union
ter your Personal Identification Number (PIN), and          St NE, Salem OR 97311-0030. The e-mail address
you can look at your information without having            is: taxinfo@emp.state.or.us.
to contact the Employment Department!

                                  STATE EMPLOYMENT TAX OFFICES
    Office                              Phone                  Office                      Phone
    Astoria ........................503-325-4821 ext 236    McMinnville.................503-434-7574
    Beaverton ....................503-626-2151              Medford........................541-776-6067
    Bend ............................541-388-6086           Milwaukie.....................503-451-2500
    Coos Bay area .............541-756-8469                 Newport .......................541-574-2303
    Corvallis......................541-757-4261 ext 230     Ontario..........................541-889-2710
    Eugene.........................541-687-7491             Pendleton .....................541-276-9050 ext 223
    Grants Pass..................541-474-3151               Portland–Downtown.....503-731-4276
    Gresham ......................503-666-1985 ext 1        Redmond ......................541-548-8196 ext 330
    Hillsboro .....................503-681-0222             Roseburg.......................541-440-3344 ext 213
    Hood River..................541-386-6300 ext 230        Salem–Field Office.......503-378-3352 ext 316
    Klamath Falls ..............541-883-5628                Salem–Central Office ...503-947-1488
    LaGrande.....................541-963-7111 ext 34        Woodburn.....................503-980-6657

                                                                                                          Page 18
Subject wages                                          Form W-4 has complete information on both
                                                       employer (including FEIN) and employee.
Some examples of taxable wages are:
• Salaries, commissions, bonuses, wages, fees,         Withholding on IRAs, annuities, and
  prizes, separation allowances, guaranteed wage       compensation plans
  payments, and vacation or holiday pay.               The withholding of taxes from commercial annu-
• Payments by a corporation, including S corpo-        ities, employer-deferred compensation plans, and
  rations and professional corporations, to a cor-     retirement plans is mandatory for the payer. How-
  porate officer for services, including guaranteed     ever, an individual may choose to have no with-
  wage payments for services.                          holding. The payer must present federal Form W-4P
                                                       or a similar form to the payee. The payee uses Form
• Wages paid when an employer-employee rela-
                                                       W-4P to show the exemptions for state withholding.
  tionship exists between a husband and wife or a
                                                       Withhold as if the payments were wages, using the
  parent and child.
                                                       tax tables furnished by the Oregon Department of
Exempt wages                                           Revenue. The amount of withholding per payee
                                                       must be $10 or more.
Oregon withholding law exempts wages paid for
                                                       • Withholding on pensions and annuities requires
certain kinds of services, labor, employee allow-
                                                         a separate Business Identification Number (BIN)
ances for the benefit of employer, and reimbursed
                                                         from your payroll account because these are not
employee business expenses. A list of exempt wages
                                                         payroll wages.
is in the Oregon Business Guide. Call the Oregon
Business Information Center at 503-986-2200 to         Oregon does not follow the federal backup with-
order a copy.                                          holding rules for pensions and annuities distributions.
                                                       The payer issues 1099s to the payees at the end
Figuring allowances                                    of the year and files Form WR with the Oregon
Use the number of allowances claimed by an em-         Department of Revenue.
ployee on Internal Revenue Service Form W-4.           For more information, call 503-945-8091.
Oregon does not have its own W-4 or W-4P. If an
employee didn’t file a Form W-4, use “single -0-” al-   Figuring withholding tax
lowances. Don’t permit the allowances on W-4 if:
                                                       To figure the amount of tax to withhold from an
• The employee claims exempt status for state with-    employee’s wages:
  holding tax only, or
                                                       • Use the “wage bracket” tables in the Oregon With-
• The Oregon Department of Revenue or the Internal       holding Tax Tables, effective March 2003, or
  Revenue Service tells you not to permit the allow-
  ances.                                               • Use the percentage formula for computer payroll
                                                         systems in the Oregon Withholding Tax Tables.
You must send a copy of Form W-4 to the De-
partment of Revenue within 20 days after re-           Note: If you need a copy of the Oregon Withholding
ceiving it if the employee claims:                     Tax Tables, call 503-945-8091 or 503-378-4988.
                                                       This information is also available on the Internet
• More than 10 allowances.                             at: www.oregon.gov/DOR.
• Exemption from federal or state tax, and the
                                                       All Oregon employers must withhold tax from
  employee’s income is expected to exceed $200
                                                       employee wages (including draws) at the time em-
  per week.
                                                       ployees are paid. Taxes are withheld and reported
• Exemption from state withholding tax but not from    in the quarter the employee is paid.
  federal withholding tax.
                                                       Employees who need additional state withholding
Send copies to: W-4 Project Manager, PO Box            can request information circular 150-206-643 from
14560, Salem OR 97309-5011. Make sure that             the Department of Revenue. Some employers must
                                                                                                      Page 19
withhold and report state withholding tax even      or pay ments to these ad dress es. You also may
though they don’t have to withhold federal tax.     call 1-800-356-4222 (toll-free with in Oregon)
                                                    or 503-378-4988 in Sa lem. The TTY num ber
Payroll questions answered by e-mail
                                                    is 1-800-886-7204 (toll-free with in Oregon)
You can now receive answers to your payroll ques-   or 503-945-8617 in Salem. A mes sage line is
tions by e-mail from the Oregon Department of       available all year for those who need assistance
Revenue. Send an e-mail with your questions to:
                                                    in Spanish. The num ber in Salem is 503-945-
                                                    8618. Written inquiries may be sent to: Oregon
Revenue field offices listed below                    Department of Revenue, 955 Center Street NE,
Forms and assistance are available at the           Salem OR 97301-2555. The Internet address is:
offices shown below. Don’t send your reports        www.oregon.gov/DOR.

  Office       Address                                Office          Address
  Bend ..........951 SW Simpson Ave, Suite 100       Pendleton........700 SE Emigrant Ave, Suite 310
  Eugene.......1600 Valley River Dr, Suite 310       Portland ..........800 NE Oregon St, Suite 505
  Gresham ....1550 NW Eastman Parkway, Ste 220       Salem Main ....955 Center St, Room 135
  Medford.....24 West 6th Street                     Salem Field ....4275 Commercial St SE
  Newport.....119 4th St NE, Suite 4                                    Building 2, Suite 180
  North Bend.....3030 Broadway                       Tualatin ..........6405 SW Rosewood St, Suite A

                                                                                              Page 20
These tax programs are administered by the Oregon       Dexter               97431
Department of Revenue for the Tri-County Metro-         Elmira               97437
politan Transportation District (TriMet) and the        Eugene               97401
Lane Transit District (LTD). They provide revenue       Eugene               97402
for mass transit (ORS Chapter 267). Transit payroll     Eugene               97403
(excise) tax is imposed on most employers who pay       Eugene               97404
wages for services performed in the TriMet or LTD       Eugene               97405
districts.                                              Eugene               97406
                                                        Eugene               97407
TriMet service area                                     Eugene               97408
TriMet serves the Portland Metropolitan area,           Eugene               97440
which includes parts of Multnomah, Washington,          Fall Creek           97438
and Clackamas counties. For information on TriMet       Finn Rock            97488
boundaries, call 503-962-6466 or the Oregon             Goshen               97401
Department of Revenue at 503-945-8091.                  Jasper               97438
                                                        Junction City        97448
ZIP codes completely in TriMet district
                                                        Lancaster            97448
97005             97201               97229             Leaburg              97489
97006             97202               97230             Lowell               97452
97008             97203               97232             Maywood              97413
97024             97204               97233             McKenzie Bridge      97413
97027             97205               97239             Pleasant Hill        97455
97030             97206               97258             Springfield           97477
97034             97209–97223         97266             Springfield           97478
97035             97225               97267             Thurston             97482
97036             97227               97268             Trent                97431
97068                                                   Veneta               97487
ZIP codes partially in TriMet district
                                                        Vida                 97488
                                                        Walterville          97488
97007             97045              97116
97009             97055              97123              Who must file a report?
97013             97060              97124              All employers who have employees working in the
97015             97062              97140              TriMet or LTD districts and who aren’t exempt (see
97019             97070              97224              “Exempt payroll” on page 19) must register and file
97022             97080              97231              with the Oregon Department of Revenue. If an em-
97023             97113              97236              ployer doesn’t have employees working within the
LTD service area                                        transit district boundaries, the payroll isn’t subject
                                                        to the transit tax.
LTD serves the entire Eugene-Springfield urban
area as well as several rural areas. Some ZIP codes     Wages subject to transit districts
may not coincide with district boundaries. For infor-   Wages means all salaries, commissions, bonuses,
mation on LTD boundaries, call 541-682-6100 or the      fees, or other items of value paid to a person for
Oregon Department of Revenue at 503-945-8091.           services performed within a transit district. See
City             Zip Code                               ORS 267.380 for further details. Transit district
                                                        wages also include:
Alvadore            97409
Blue River          97413                               • Contributions to a Simplified Employee Pension
Coburg              97401                                 (SEP) made at the election of the employee.
Cottage Grove       97424                               • Payments for the purchase of IRC section 403(b)
Creswell            97426                                 annuities under salary reduction agreements.
                                                                                                      Page 21
• Contributions to 401(k) retirement plans made at      •   Casual labor.
  the election of the employee, including employer-     •   Services performed outside the district.
  matched contributions.                                •   Seamen who are exempt from garnishment.
• Pick-up payments to governmental retirement           •   Employee trusts that are exempt from taxation.
  plans under salary reduction agreements.              •   Tips paid by the customer to the employee.
• Amount deferred under governmental deferred           •   Wages paid to employees whose labor is solely
  compensation plans.                                       connected to planting, cultivating, or harvesting
• Any amount deferred under a nonqualified                  seasonal agricultural crops.
  deferred compensation plan.
                                                        The following are exempt from LTD but subject to
• Payment to an IRC408 Individual Retirement            TriMet:
  Account under salary reduction agreement.
                                                        •   Public education districts.
Exempt payroll                                          •   Public special service and utility districts.
The following are exempt from TriMet and LTD            •   Port authorities.
excise taxes:                                           •   Fire districts.
• Federal government units.                             •   City, county, and other local government units.
• Federal credit unions.                                How to figure the transit tax
• Public school districts.                              The transit tax is imposed directly on the employer.
• Organizations, except hospitals, that have qualified   It is imposed only for the amount of gross payroll
  for exemption under ORS 267.380(1)(b).                paid for services performed within the TriMet or
• All foreign insurers are exempt. All insurance        LTD district.
  adjusters, agents, and agencies, as well as their     Use the current TriMet or LTD tax rates. If you
  office support staff, whether representing foreign     are subject to TriMet or LTD transit tax and no tax
  or domestic companies also are exempt.                rate is printed, contact the Oregon Department of
• Domestic service in a private home.                   Revenue at 503-945-8091.

                                                                   OREGON WORKE

                                                                                                      Page 22
The Workers’ Benefit Fund (WBF)                        other paid nonsubject individuals with your work-
The Workers’ Benefit Fund supports programs that       ers’ compensation insurance policy.
directly benefit injured workers and the employers     Hourly assessment
who help them return to the work force. More
information about specific programs supported by       The assessment is based on the total number of
the fund is on the Internet at: www.oregon.gov/       hours or parts of hours worked by all paid subject
DCBS/FABS/wbf.shtml.                                  work ers in the same pay period that is used to
                                                      compute the employee’s withholding. The hourly
Note: This assessment is separate from your           assessment rate is printed on Form OQ in box 10
workers’ compensation insurance premium.              and may change annually.
Workers subject to Workers’                           How to update or close your Workers’
Benefit Fund (WBF) assessment                          Benefit Fund assessment account
Individuals subject to the Workers’ Benefit Fund       If you change ownership, discontinue business, or
assessment are (1) all paid workers for whom the      cease to employ workers, contact your workers’
employer is required by Oregon law to provide         com pen sa tion insurer with the corrected infor-
workers’ compensation insurance coverage, and         mation. When your insurer terminates or files an
(2) all paid individuals (workers, owners, officers)   en dorse ment to the guar an ty contract with the
that may otherwise be nonsubject, but whom the        Workers’ Compensation Division of DCBS, your
employer covers under workers’ compensation           WBF assessment account also will be corrected
insurance through personal election.                  or closed. You also may use the “Corrections
For each quarter that you have subject workers or     and Changes Notification for WBF Assessment”
covered nonsubject individuals, you must file Form     form to expedite updating or closing your WBF
OQ to report hours worked. If you do not file Form     assessment account for reporting purposes. Your
OQ during the time you have subject workers or        insurance coverage and claims liability remain
personal elections, you may be assessed a penalty.    unchanged and in effect until your insurer notifies
                                                      the Workers’ Compensation Division directly. The
Workers’ Benefit Fund assessment                       “Corrections and Changes Notification for WBF
reporting exemptions                                  Assessment” form is available on the Internet at
You may qualify for exemption from reporting          www.oregon.gov/DCBS/FABS/wbf.shtml, or by
the WBF assessment if you do not have any paid        calling 503-378-2372.
individuals (including yourself) covered by your      Workers’ Benefit Fund assessment questions
workers’ compensation insurance policy. To re-
quest an exemption from WBF assessment report-        If you have questions about your WBF assessment
ing, complete and mail to DCBS a “Corrections         account, you can now contact us by e-mail. Our e-
and Changes Notification for WBF Assessment”           mail address is: wbfassess.fabs@state.or.us. Our
form. The form is available on the Internet at        mailing address is:
www.oregon.gov/DCBS/FABS/wbf.shtml or by                  Workers’ Compensation Assessments Section
calling 503-378-2372. Note: You must resume               DCBS/Fiscal and Business Services
reporting the WBF assessment as soon as you have          PO Box 14480
paid subject workers or elect to cover yourself or        Salem OR 97309-0405

                                                                                                Page 23
                                                                                                                Clear Form
                                                  Do Not Staple; Use Tape
  Order Form

Fold Here Last

  Use this form to order additional forms, software, or specifications. Check the appropriate boxes or enter the number of copies
  desired. Forms vary from year to year. Forms also can be ordered by phone, (503-947-1488 opt. 3), fax (503-947-1487), or on
  the Internet (www.oregon.gov/EMPLOY/TAX). Specifications for previous years are not available.

                                                                         Telephone Number: (            )

  Check Items:

    _____ OTTER program for filing by e-mail/diskette                      _____ Plain Paper Specifications
                                                                                  (plain 20# bond paper also may
                                                                                  be used for making reports)

Fold Here First

    Personalized Preprinted Forms (specify amount)                        Blank Oregon Combined Payroll Tax Forms
                                                                          (specify year and amount)*
    _____ Current Year Report Packet
          Check quarters for which forms are needed.                       Year      Form OQ         Schedule B        Form 132

                  (1st)                                                   _____        _____            _____           _____

                  (2nd)                                                   _____        _____            _____           _____

                  (3rd)                                                   * Large forms orders may require a payment.
                                                                            The cost is 4 cents per page. If your order exceeds
                  (4th)                                                     100 copies of any kind, we will call you before
                                                                            sending the ordered forms. Be sure your telephone
    _____ Extra Current Year Forms 132 (how many)                           number is listed so we can contact you.

                                To order Form OTC (Oregon Tax Coupon), call 503-945-8091.
              Employment Department—Tax
              875 Union Street NE
              Salem OR 97311-0030

                                                                                                                                                            Clear Form
                                                                                                                                                   Department Use Only
WR                           RECONCILIATION REPORT                                                           2006                           Date Received

                                 Return Due Date: February 28, 2007

Business Name                                                                                   Business Identification Number (BIN)                         Number of W-2s

• Please read the instructions on the back of this report.
• Do not send W-2s and 1099s. The Oregon Department of Revenue may request certain employers to
  file W-2 or 1099 forms at a later date to reconcile their account.

 Use your 2006 OQ forms. See the instructions on the back.                                                                                             Tax Reported

 1. 1st Quarter..............................................................................................................................1

 2. 2nd Quarter ............................................................................................................................2

 3. 3rd Quarter .............................................................................................................................3

 4. 4th Quarter .............................................................................................................................4

 5. Total .....................................................................................................................................5

 6. Total Oregon tax shown on W-2s or 1099s* ..........................................................................6

 7. Enter the difference between box 5 and box 6 .......................................................................7
    If box 6 is larger than box 5, you owe tax. Pay the amount in box 7. Include a
    payment coupon (Form OTC) with your check.
    If box 6 is smaller than box 5, you may have a credit for the amount in box 7.
    If the amount in box 7 is -0-, your withholding account balances.

 Explanation of difference ___________________________________________________________________________

 *Include the amount of tax on your 1099s unless they have a separate account.

 I certify that this report is true and correct and is filed under penalty of false swearing.
Signature                                                                                                                            Date

Print name                                                               Title                                                       Telephone No.

                                                                                                                                     (             )

                      Important: Mail Form WR separately from your 4th quarter Form OQ.
                                             Mail Form WR to: Oregon Department of Revenue
                                                              PO Box 14260
                                                              Salem OR 97309-5060
150-206-012 (Rev. 12-05)   Web                                                                                   Please read the instructions on the back ➛
                                   INSTRUCTIONS FOR FORM WR
Filing requirements                                       Line 6. Enter the total Oregon tax withheld from your
                                                          employees’ W-2s or 1099R forms.
All Oregon employers who pay state withholding tax
must file Form WR, Oregon Annual Withholding Tax           Line 7. Enter the difference between line 5 (total
Reconciliation Report. The 2005 form is due February      tax paid) and line 6 (total tax shown from W-2s or
28, 2006. If you stop doing business during 2006 or no    1099Rs).
longer have employees, Form WR is due 45 days after       If line 6 is larger than line 5, you owe additional tax
your final payroll.                                        (shown on line 7). If line 6 is smaller than line 5, you
To amend data on Form WR, make a copy of the orig-        have overpaid your tax and have a credit. If the amount
inal Form WR and make the necessary changes on the        on line 7 is zero, your state withholding account
copy. Write “Amended” at the top of the form. Attach      balances.
any necessary amended OQ forms to the amended             Please give an explanation of the difference on the
Form WR. Send your amended forms to the address           lines provided.
shown below.
                                                          If you have overpaid, the credit may be applied to a fu-
Oregon employers who fail to file Form WR may be           ture quarter. The credit may not be used for another
charged a penalty of $100.                                tax program. If you want the credit refunded, send a
                                                          written request, or you may use the explanation lines
How to fill out Form WR
                                                          to request your refund.
Write your business name and Oregon business iden-
                                                          If you owe tax, please include a payment. Do not staple
tification number (BIN) in the spaces shown. If you
                                                          or tape your payment to Form WR. Be sure to remove
received a personalized booklet, your name and busi-
                                                          and retain any check stubs.
ness identification number will be filled in. Follow the
instructions below for each line number.                  Sign and date your completed Form WR. Print your
                                                          name and telephone number. Mail Form WR to:
Line 1 through Line 4. Fill in the total Oregon tax
reported for each quarter (use the amount from box               Oregon Department of Revenue
5B of your 2006 OQ forms).                                       PO Box 14260
Line 5. Total. Total amount from all quarters reported.          Salem OR 97309-5060

                                           — IMPORTANT —
                  Mail your Form WR separately from your 2006 4th quarter Form OQ.
                                         Make a copy for your records.

150-206-012 (Rev. 12-05)   Web
                                                                                                                                         Clear Form
CHANGE IN STATUS REPORT                                • If you have workers’ compensation insurance, you must also notify your insurer.
                                                                                                                               Department Use Only
    Has your business name, mailing address, telephone                 Has the address where your forms are         Date received
    number, or federal employer identification number (FEIN)            delivered changed? Check this box and
    changed? Check this box and fill in the change(s) below.            fill in the change(s) below.
                                                                                                                    Initials when completed

  Business Name            ________________________________________________

  Physical or              ________________________________________________
  Mailing Address
                                                                                                      Oregon Business
                           ________________________________________________                 Identification Number (BIN)
                                                                                                      Federal Employer
                   (       )
  Telephone Number ________________________________________________                        Identification Number (FEIN)

  FEIN                     ________________________________________________                                      Fax to:   503-947-1700
NATURE OF CHANGE: (Please check as appropriate) If an entity change, see instructions.                           Mail to: Employment Department
    A. Sold, leased, or otherwise transferred:    All or      Part of the business, to:                                    875 Union St NE, Rm 107
                                                                                                                           Salem OR 97311-0030
       Business Name:__________________________________________________________________ Date of Sale: _________________________

       New Owner’s Name: ______________________________________________________________ Telephone : (       )


       Was business operating at the time it was sold, leased, or otherwise transferred?      Yes       No

       If only part of the business was transferred, describe what was transferred: ________________________________________________________

       How many employees were transferred? ______________________________________________

    B. Partnership formed or changed. Explain on a separate sheet and attach along with a Combined Employer’s Registration form for a new partnership.

    C. Corporation:        Formed    Dissolved   Ceased operations
       Effective Date: _____________ Explain on a separate sheet and attach along with a Combined Employer’s Registration form for a new corporation.
           Change of Officers (attach a list of officers with SSNs, home addresses, and phone numbers).
           Entity change from:__________________________________________ To: _______________________________________________________

    D. Now doing business in:       TriMet   and/or        Lane Transit District   Effective Date: ______________________________________________

    E. No longer doing business in: TriMet and/or    Lane Transit District Effective Date: __________________________________________
       New location: _________________________________________________________________________________________________________

    F. Partnership, LLC/LLP, or sole proprietor operating without employees.

    G. Now using leased employees: Name of leasing company _________________________________ Date employees transferred: ____________

       Total number of employees prior to transfer ____________________________________________ How many employees transferred?_______

    H. Closed business or no longer doing business in Oregon.
       Note: Corporate officers and members of limited liability companies are employees for some tax programs, but not in others. Check with each agency
       to see if these individuals are considered employees.

Date of final payroll __________________ Location of terminated business’ records: Name: ______________________________________________
Address __________________________________________________________________________________________________________________

I understand that it will be necessary for me to again report and pay taxes if at any time I resume operating, even though in a different line of business and
regardless of the extent of my employment.

Signature _______________________________ Title ________________________ Date _____________ Telephone No.(_____________________

150-211-157 (Rev. 12-05) Web
                                  Change in Status Report Instructions
As an employer you must notify the Employment                       — If you are an employer who has recently moved
Department, the Department of Revenue, and your                        from the TriMet and/or Lane Transit District, you
workers’ compensation insurer of any change in your                    are no longer subject to this tax (see the Oregon
business.                                                              Combined Payroll Tax booklet for cities and ZIP
Examples of changes to report on the Change in                         codes).
Status Report are:                                                  — The TriMet District includes parts of three coun-
• Address change.                                                      ties in the Portland metro area: Multnomah,
• Name change.                                                         Washington, and Clackamas. For TriMet bound-
                                                                       ary questions call 503-962-6466.
• Federal employer identification number (FEIN)
  change, only if printed incorrectly on your forms.                — Lane Transit District (LTD) serves the Eugene-
• Dissolution of sole proprietor, partnership, corpo-                  Springfield metro area. For LTD boundary ques-
  ration, or a limited liability company.                              tions call 541-682-6100.
  NOTE: New businesses need to complete a Com-                    • Closing the business completely.
  bined Employers Registration.                                   An entity change in your business that will require
• Partial or complete sale, lease, or transfer of business.       completion of a new Combined Employers Regis-
• Change in corporate officers or partnership.                     tration include:
• Using leased employees.                                         • Changing from a sole proprietorship to a partnership
• Closing or beginning operations in a transit district:            or corporation.
  — If you are an employer who is paying wages                    • Changing from a partnership to a sole proprietorship
      earned in the TriMet and/or Lane Transit District             or corporation.
      you must register and file with the Oregon Depart-           • Changing from a corporation to a sole proprietorship
      ment of Revenue. Wages include all salaries, com-             or partnership.
      missions, bonuses, fees, payments to a deferred
                                                                  • Changing of members in a partnership of five or
      compensation plan, or other items of value.
                                                                    fewer partners.
  — If you are an employer who has recently started
      working in the TriMet and/or Lane Transit District,         • Adding or removing a spouse as a liable owner.
      you are subject to this tax (see the Oregon Combined        • Changing from a sole proprietor, corporation, or
      Payroll Tax booklet for cities and ZIP codes).                partnership to a limited liability company.

                                      Complete the “Change In Status Report” and

                                                 Fax to: 503-947-1700
                                                           – or –
                                    Mail to: Employment Department
                                               875 Union St. NE, Rm 107
                                               Salem OR 97311-0030
                                  To order additional copies of this form, contact the Employment
                               Department or download it from the Internet at: www.oregon.gov/DOR.

150-211-157 (Rev. 12-05) Web                                                                                  Form 013

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