Meeting both the Federal and state employer requirements requires a commitment beyond the capabilities of many multi-hat managers. For example, Oregon recently enacted a new law that includes salary history inquiry restrictions.
The new law's impact is not as apparent as you may think. It says:
The resources below should help you to better understand payroll tax requirements and deadlines.
Before hiring an employee, create a plan to get them paid. Include these in your plan:
The IRS maintains the Employer’s Tax Guide, which provides guidance on all federal tax filing requirements that could apply to the obligations for your small business. Check with your state tax agency for employer filing stipulations.
Oregon State Resources
All employers with paid employees working in Oregon must register for a business identification number (BIN) to report and pay Oregon payroll taxes. Corporations without employees must also register to report compensation paid to corporate officers.
Oregon uses a Combined Payroll Tax Reporting System to report all payroll taxes together. The BIN serves as the employer's account number when reporting payroll taxes.
Before you hire
Register online for a BIN using the Oregon Business Registry or by submitting a Combined Employer's Registration form. You must register before issuing any paychecks. Learn more about BINs.
Know the law
Oregon withholding taxes are due the same time as your federal taxes. Unemployment, transit taxes, and the Workers' Benefit Fund assessment payments are due the last day of the month following the end of the calendar quarter. Form OQ quarterly reports are due:
Payments, Reports, Penalties & Interest
Filing and forms
Choose a quarterly report filing method:
Visit the Employment Department to order Oregon combined tax forms for reporting and payment of withholding taxes or contact us at (503) 945-8100.
Year-end reconciliation information
You must file an Oregon Annual Withholding Reconciliation Report, Form WR, even if you submit your W-2 information electronically. Form WR is due January 31 in the year after the tax year. If you stop doing business during the year, the report is due within 30 days of your final payroll. You can file this form electronically through Revenue Online.
Update your business information
Make updates to addresses and phone numbers or change offsite payroll services using the Business Change in Status form, or online using the Central Business Contact Change form.
Change your business structure
Complete a Business Change in Status form, or a new Combined Employer's Registration form if you change your business structure, examples include:
2018 Tax Rates
The tax rates for Tax Schedule III are as follows:
Forms for filing payroll taxes by paper cannot be downloaded.
They must be ordered from the Employment Department.
Forms Available to Download:
There is more but this covers the basics.
Payroll is more complicated than ever. Employees are suing their previous employers based on non-payment, overtime, discrimination, and other reasons that requires recordkeeping excellence.
If you are attempting to manage your own payroll internally and have areas of concern, please contact Eric Moore at Accounting Solutions Partners. Eric can help you identify your needs, outline a plan and help you get started with new payroll or bookkeeping services. Your plan may include onsite, offsite or a combination.
Note: This content contains general information and guidance only. It is not a substitute for legal or tax advice. For advice specific to your area or business, be sure to consult with a qualified professional.
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