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Withholding tax for agricultural employees
Does this information apply to me?
 
This information applies to you if you employ agricultural employees.
 
When do I need to withhold tax for agricultural employees?
 
You must withhold tax for employees who plant, cultivate, or harvest seasonal agricultural crops once they earn $300 in a calendar year from you. When the amount exceeds $300, the entire amount is subject to withholding tax.
 
A seasonal agricultural crop requires an annual or less than annual season to mature. The crop is harvested at the end of its season. Seasonal crops include:
  1. Field and forage crops.
  2. Seed of grasses, cereal grains, vegetable crops, and flowers.
  3. Bulbs and tubers of vegetable crops.
  4. Any vegetable or fruit used for food or feed.
  5. Holly cuttings harvested annually for Christmas sale. (Note: Christmas trees are not considered seasonal agricultural crops.)
You must withhold tax on all wages of regular farm employees, even though part of their work may involve planting, cultivating, or harvesting. You must withhold tax on all wages paid for seasonal activities, such as canning or other food processing, logging, and sheepshearing. Those activities are not connected with planting, cultivating, or harvesting seasonal agricultural crops.
 
Labor connected with the following is not considered seasonal:
  1. Forest products.
  2. Landscaping.
  3. Nursery stock as defined in ORS 571.005 unless planted, cultivated, and harvested within an annual period.
  4. Raising, shearing, feeding, caring for, training, or management of livestock, bees, poultry, furbearing animals, or wildlife.
  5. Christmas trees.
How much do I need to withhold?
  • For a seasonal farm employee, you may choose to withhold 2 percent of the total wages without considering any withholding exemptions; OR
 
How do I report Oregon income tax withholding?
 
If you file federal Form 943, Employer’s Annual Tax Return for Agricultural Employees, you can also file your Oregon withholding returns annually. File Form WA, Oregon Annual Withholding Tax Return for Agricultural Employers. It is due by January 31 following the tax year.
 
If you are subject to unemployment, transit taxes, or Workers’ Benefit Fund assessment, you must also file Form OQ each quarter.
 
If you have any employees who are not classified as agricultural, withholding for all employees must be reported quarterly.
 
When are withholding payments due?
 
Withholding tax payments 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
 
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 a Business Change in Status Form and mail to:
 
Employment Department
875 Union Street NE
Salem OR 97311-0030