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Withholding Taxes: Domestic/Household Employees
If you pay someone for domestic/household work, that worker is your employee. Domestic/household work is work done in or around your home by babysitters, nannies, health aides, private nurses, maids, caretakers, yard workers, and similar domestic workers.
 
When is a domestic/household worker an employee?
 
A domestic/household worker is your employee if you can control not only what work is done, but also how it is done. It does not matter if the work is full-time or part-time, or if you hired the worker through an agency. It also does not matter whether you pay the worker by the job or on an hourly, daily, or weekly basis.
 
Should I withhold Oregon income tax from a domestic/household employee’s pay?
 
Oregon income tax withholding is not required for domestic/household employees. However, you can withhold Oregon income tax if the domestic/household employee asks you to withhold and you agree.
 
How do I figure withholding?
 
To determine withholding, the employee must complete Federal Form W-4, Employee's Withholding Allowance Certificate. Use the Oregon Withholding Tax Tables or Oregon Withholding Tax Formulas to find out how much state income tax to withhold from the employee’s pay.
 
How do I register as a domestic/household employer?
 
If you agree to withhold Oregon income tax, you must register before issuing the employee's first paycheck. The Department of Revenue needs to assign you a business identification number (BIN). If you already have one, contact the Oregon Department of Revenue at 503-945-8091, option 1, so we can set you up for state withholding tax.
 
If you need a BIN, you must apply for one. You can register as an employer electronically or you can mail the completed registration to us.
 
Register online: Central Business Registry
Register by paper: Combined Employer's Registration
 
If you register electronically, you'll receive your BIN within one to three days.
If you register by paper, you'll receive your BIN within three weeks.
 
I'm not a business. Why do I need a BIN? 
 
Although you are not considered a business, the BIN is used to properly credit the income tax withheld from the employee's pay. 
 
How do I report Oregon income tax withholding?
 
After you have registered, we will assign you an Oregon BIN and send you personalized forms.
 
If you employ only domestic/household employees, you may file the tax due annually using Form OA—Domestic. This form is due January 31 of each year.
 
When are withholding payments due?
 
You may send your payments in throughout the year or annually. If you choose to make your withholding payments during the year, they are due the same day you make your FICA payment or your federal tax payment, regardless of the amount of your Oregon withholding tax.
 
Send payments with Form OTC, Oregon Combined Tax Payment Coupon, directly to:
 
Oregon Department of Revenue
PO Box 14800
Salem OR 97309-0920
 
Note: Send a coupon with every payment.
 
How do I close my Oregon withholding tax account?
 
If you no longer have employees, you can close your Oregon withholding tax account. Fill out the Business Change in Status Form included in your annual reporting packet and mail to:
 
Employment Department
875 Union Street NE
Salem OR 97311-0030
 
How can I get information about Workers’ Benefit Fund Assessment and Unemployment Insurance?
 
For questions about Workers’ Benefit Fund Assessment, call the Department of Consumer and Business Services at 503-378-2372.
 
For questions regarding Unemployment Insurance, call the Employment Department at 503-947-1488.
 
Should I report transit district tax?
 
Domestic service in a private home is exempt from Tri-County Metropolitan District (TriMet) and Lane Transit District (LTD) taxes. However, if you use your home as a business (adult foster care or child care facility) and are within the boundaries you are subject to the transit taxes.
 
I have a domestic care provider through DHS Brokerage. Why do I need to register?

The brokerage handles all payroll reporting requirements, we have you register to keep record of all payroll tax reported & paid, on your behalf, by the brokerage.