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Oregon withholding tax

Oregon withholding tax law
The Oregon Department of Revenue administers the state's withholding tax program. Employers residing in, or doing business in Oregon must withhold tax from all wages paid to employees who are residents of Oregon, even for services performed and wages earned outside of Oregon. Employers must also withhold tax from all wages earned by nonresident employees for services performed in Oregon.
The three components of Oregon's withholding tax law are:
  1. All Oregon employers must withhold tax from employee wages at the same time employees are paid.
  2. For Oregon employers, due dates for paying state withholding tax are the same as the due dates for making federal withholding tax and FICA tax deposits.
  3. All Oregon employers must file combined tax returns in addition to making the required payments.
Are you an employer responsible for filing and paying withholding tax? According to Oregon law, an employer is a person or an organization for whom a worker performs a service as an employee. The employer usually provides the tools and the place to work, and has the right to fire an employee. An employer may be an individual, corporation, partnership, estate, trust, association, joint venture, or other unincorporated organization.
Under Oregon law, business owners can be held personally responsible for paying withholding tax no matter what type of business you own. OAR 150-316.162(3) sets clear and specific guidelines for determining personal liability.
Wages subject to Oregon withholding tax includes salaries, commissions, bonuses, wages, fees, or any other item of value paid to an individual for services as an employee. To determine the amount of Oregon tax to withhold, use the tax tables prepared by the Oregon Department of Revenue.
Oregon employers are required to register with the State of Oregon. Use the Combined Employer Registration. You can get information about starting a business by contacting the Business Referral Center at www.filinginoregon.com. More information on employer requirements is available in the Oregon Business Guide. This guide is full of valuable information. It contains, among other things, the following information:

  • Who is an employer for withholding tax?
  • Who is an employee for withholding tax?
  • How to register.
  • Taxable wages.
  • Exempt wages.
  • Independent contractor definition.
  • What about farm workers?
  • Calculating withholding and voluntary withholding.
  • Payment due dates and methods.
  • Reporting requirements.
  • Penalty and interest, liability.
  • Forms, final payroll, keeping records.
  • 1099 and W-2 filing requirements.
If you have questions regarding other reporting options for quarterly payroll returns, contact the Oregon Employment Department.

Employers use Oregon combined tax forms for reporting and payment of withholding taxes. To follow is a list of necessary forms: 

Employment Department forms

Department of Revenue general forms

Department of Revenue year specific forms
Click on a tax year below to open (or close) a list of forms in alphabetical order:

Learn more by reading the withholding tax common questions, or contact our office for additional information.