Real Estate Agency - State Library of Oregon: State...

State of Oregon Real Estate Agency

1177 Center Street NE ● Salem, OR 97301-2505

Agency Plain Language Plan 2008 to 2010 Prepared December 2008

Summary: House Bill 2702, passed in the 2007 Legislative Session, requires all state agencies to adopt and implement a plain language plan. This document summarizes the Real Estate Agency’s plan and current status. Plain Language Projects 2008 through 2010: The Agency initiated a complete review of administrative rules in 2008 and created separate rule review projects for 1) real estate brokers; 2) real estate property managers; and 3) escrow agents. A significant goal of these reviews was to amend the rules in order to implement the plain language standards set out in House Bill 2702. The three review projects were a collaboration of the Agency, the industry and the Board. For each project, managers and staff with subject matter expertise conducted an initial review of the rules and drafted recommendations for amendments. Next, the Agency began a series of meetings with working groups that reviewed the rules and considered the Agency’s recommendations. Working group members included Agency staff, industry representatives and Real Estate Board members. Each working group had 15 to 25 members and met six to ten times before preparing a final draft. Each project had an advisory group of 25 to 61 industry members who reviewed the final drafts specifically for clarity, simplicity and readability. Members provided feedback to the Agency through an electronic survey. The Agency revised certain rules based on the survey results and the prepared final draft rules for review by the work groups and the Real Estate Board. The Board recommended that the Agency file the amended rules. The rules will become effective January 1, 2009. The Agency met the following goals:

� To meet the plain language standards in the Agency’s administrative rules � To simplify finding and using certain rules by separating licensing, regulatory

and disciplinary rules for real estate brokers and real estate property managers

� To make substantive changes to rules through a broad collaborative process � To educate Agency staff, the real estate industry and the Board about the

benefits of plain language standards � To file rules that would become effective on January 1, 2009.

Beginning July 2009, the Agency will reconvene the three working groups. Each group will have three purposes. One purpose is to determine whether amendments are needed based on Agency and industry experience implementing the new rules. Another purpose is to address certain substantive issues that were not resolved during the 2008 projects. Finally, each group will address the need for any rules based on statutory changes during the 2009 Legislative Session. This second phase of the three project will be completed in 2010. Contact: Laurie Skillman (503) 378-4630

150-800-075 (Rev. 1-03)

Department of Revenue

955 Center St NESalem OR 97301-2555

Oregon Theodore R. Kulongoski, Governor

Plain Language Implementation Plan

Oregon Department of Revenue

The Oregon Department of Revenue is creating a plan to help our

employees communicate with taxpayers. Clear writing is vital to

tax compliance. The more taxpayers understand Oregon’s tax laws,

the more likely they are to comply with those laws.

We produce more than 400 forms and publications. We also send thousands of letters to taxpayers each year. Because we create so much written material, we’ll need to do our review and revision process in a strategic and thoughtful way.

Elements of this plan include:

• March 2009—An intranet page dedicated to plain language. Staff will use this along with our styleguide to help them in their writing. The page will have links to other plain language resources on the internet.

• By May 2009—Our plain language coordinator will visit staff groups. About half of our staff regularly works with taxpayers. These visits will introduce plain language to employees who write letters, forms and instructions.

• By late 2009—We’ll develop a review schedule for all our forms and instructions. Review projects will begin late in the year, and continue into future years. We’ll determine how to measure success at the beginning of each large project. We’ll evaluate how readers respond to the form or instructions before and after revision. Small quantity publications may not get measured.

• We’ll continue our ongoing writing classes. We currently train nearly 100 employees a year on how to write in plain language.

The Oregon Department of Revenue’s plain language coordinator

is:

Derrick Gasperini

Public Information Officer

503-945-8565

[email protected]

Before

Oregon Department of Revenue955 Center Street NESalem OR 97301-2555

Oregon Combined Payroll Tax Report

How to ensure that your report is processed timely

✓ Do you use a tax preparer? If so, the preparer may need this booklet to file your reports.

✓ Double-check your math.✓ When sending a payment,

you must include a Form OTC.

✓ If you have no payroll or hours worked during a quarter, enter a “0” in the boxes on lines 1, 5, 9, and 11 for each tax program to which you are subject.

✓ File electronically. See page 9 for details.

2008Oregon Department of Revenue

Oregon Employment Department

Oregon Department of Consumer & Business Services

150-211-155 (Rev. 12-07)

Forms and Instructions For Oregon Employers

— FORM OQ OREGON QUARTERLY TAX REPORT

— OREGON SCHEDULE B

— FORM 132 EMPLOYEE DETAIL REPORT

— FORMS ORDER REQUEST

— FORM 013 CHANGE IN STATUS REPORT

— FORM WR OREGON ANNUAL WITHHOLDING TAX RECONCILIATION REPORT

2008 Oregon Combined Tax Payment Coupons (Form OTC) are not in this booklet. They are sent separately to employers.

TaBlE OF COnTEnTS

State withholding, TriMet, lTD taxes

OREGOn DEPaRTMEnT OF REVEnUESalem: 503-945-8091 or 1-800-356-4222TTY users: 503-945-8617Internet: www.oregon.gov/DORe-mail: [email protected]

Reporting forms: Oregon Quarterly Tax Report—Form OQ Oregon Schedule B Oregon Annual Withholding Tax Reconciliation

Report—Form WR Change in Status Report—Form 013

Workers’ Benefit Fund assessment

OREGOn DEPaRTMEnT OF COnSUMER & BUSInESS SERVICES (DCBS) Assessment questions:

Salem: 503-378-2372TTY users: 503-378-2372Internet: www.oregon.gov/DCBS/FABS/wbf.shtmle-mail: [email protected]

Subjectivity questions:Salem: 503-947-7815 or 1-888-877-5670e-mail: [email protected]

Reporting form: Oregon Quarterly Tax Report—Form OQ

Use the numbers below if you need help or more information.

Filing Due Dates for Quarterly Reports, Where to File and Pay ............................................................. 3New Information ............................................................................................................................................ 4Important Information ................................................................................................................................... 5Required Forms ............................................................................................................................................... 8Filing the Combined Quarterly Tax Report ................................................................................................ 9Payment Instructions ................................................................................................................................... 10Guidelines for Oregon Withholding Payment Due Dates ...................................................................... 11Penalties and Interest ................................................................................................................................... 12Quarterly Tax Report (Form OQ) Instructions ......................................................................................... 13Employee Detail Report (Form 132) Instructions .................................................................................... 16Schedule B Instructions ................................................................................................................................ 16Unemployment Insurance (UI) Tax Information ..................................................................................... 17Withholding Tax Information ..................................................................................................................... 19Transit District Excise Tax Information ..................................................................................................... 21Workers’ Benefit Fund Assessment Information ..................................................................................... 23

State unemployment insurance tax

OREGOn EMPlOYMEnT DEPaRTMEnT Salem: 503-947-1488 TTY users: 711Internet: www.oregon.gov/EMPLOY/TAXe-mail: [email protected]

Reporting forms: Oregon Quarterly Tax Report—Form OQ Employee Detail Report—Form 132 Change in Status Report—Form 013 Order Request form

Payments for all tax programs

Payment coupons (Form OTC) are mailed sepa-rately to employers. You must include one with each payment.

To order OTCs call:Salem: 503-945-8091 or 503-378-4988EFT Help Line: 503-947-2017(electronic funds transfer)

Other internet addressesHow to Start a Business in Oregon and Employ-er’s Guide for Doing Business in Oregon are available at www.filinginoregon.com

Federal payroll tax and FUTA forms are available at www.irs.gov

FIlInG DUE DaTES FOR QUaRTERlY REPORTS Quarter Quarter Ending Date Report Due Date

1st — Jan–Feb–Mar March 31, 2008 April 30, 2008

2nd — Apr–May–Jun June 30, 2008 July 31, 2008

3rd — Jul–Aug–Sep September 30, 2008 October 31, 2008

4th — Oct–Nov–Dec December 31, 2008 January 31, 2009

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 inPaper form

All paymentsForm OTC(see page 8)

All reports onMagnetic Media(CD / diskette in federal format)

Form WRAnnual Withholding TaxReconciliation Report

Mail to: Oregon Department of Revenue

PO Box 14800 Salem OR 97309-0920

Mail to: Tax Section, Room 107

Employment Department 875 Union St nE Salem OR 97311-0030


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 1-800-356-4222 (toll free from an Oregon prefix) or the Oregon Employment Department at 503-947-1488.

All reports usingEmployment Department

software(see page 9)

Send electronically

Employers of Oregon nonresidents

You must withhold Oregon income tax from all wages earned by nonresident employees for services performed in Oregon, unless their Oregon earnings for the year will be less than the standard deduction amount for their fil-ing status. The Oregon standard deduction amounts for tax year 2007 are as follows:

Single or married filing separately .........$1,825Head of household ....................................$2,940Married filing jointly ................................$3,650Qualifying widow(er) ...............................$3,650

Nonresident employees with wages greater than their standard deduction amount are required to file an Oregon nonresident income tax return. Nonresident employees with Ore-gon wages less than their standard deduction still may request that you withhold tax; usu-ally they have additional Oregon income from other sources.

Tax rates

• The Workers’ Benefit Fund (WBF) assessment rate is 0.028.

• The taxable wage base for unemployment insurance is $30,200.

• Tri-County Metropolitan Transportation District (TriMet) tax rate is 0.006618.

• Lane Transit District (LTD) tax rate is 0.0064.

Oregon income tax withholding—Information circular

Information about Oregon income tax with-holding is available on the internet at www.oregon.gov/DOR/BUS/withholding.shtml.

nEW InFORMaTIOn

IMPORTanT InFORMaTIOnOregon Department of Revenue, Employment Department, and Department of Consumer and Business Services rules differ. Please read all instructions carefully. If you have questions, please contact the appropriate agency (see page 2).

What is considered a filed return

While there are multiple tax and assessment pro-grams represented on the Oregon Quarterly Tax Report, it is important to note the following filing requirements for state withholding, Tri-County Metropolitan Transportation District (TriMet), and Lane Transit District (LTD) tax programs that are administered by the Oregon Department of Revenue.

• Only columns filled in with numerical informa-tion will be considered a filed return for that program.

• If you have no payroll or hours worked during a quarter, enter a “0” in the boxes on lines 1, 5, 9, and 11 for each tax program to which you are subject.

• If you enter something other than a number in a specific tax column or leave a specific tax column blank, we will conclude you are communicating to us that you are not subject to that tax and that you are not filing a return for purposes of that tax.

Withholding on distribution of pensions or annuities

State withholding on distribution of pensions or annuities must be made with respect to any dis-tribution for which federal income taxes are to be withheld or are required to be withheld under Sec-tion 3405 of the Internal Revenue Code.

You may be required to obtain a separate BIN for the pension/annuity account. Contact the Department of Revenue at 503-947-8091 for more information.

Employer new hire reporting program

All Oregon employers are required to report new and rehired employees to the Division of Child Support within 20 days of date of hire. For informa-tion on the law and the procedures for reporting, contact: Department of Justice Employer New Hire Reporting Program 1495 Edgewater St NW Salem OR 97304

Telephone: 503-378-2868 Fax: 503-378-2863 or 877-877-7415 E-mail: [email protected] Website: www.oregon.gov/DOJ

Capitalize your reports

Extensive testing of our electronic processing equipment has shown that your reports are read much more accurately if you prepare them using capital letters rather than changing cases or using lower case. Please help us avoid processing errors and unnecessary notices to you by preparing your reports using CAPITAL LETTERS ONLY!

Tax tablesEffective January 1, 2007, the Oregon withholding tax tables were updated. The tables are available on the internet at www.oregon.gov/DOR. If you do not have internet access, you may call 503-945-8091.

Reporting hours may differ

The number of hours reported for UI tax on the Wage Detail Report (Form 132) will not necessarily equal the number of hours reported for the WBF assessment in box 9 on Form OQ (see pages 13–15 for more information).

Reporting subject wages

Total wages reported for UI and withholding could be different depending on the subjectivity require-ments for each program (see pages 17–20 for more information).

Easy, free electronic filing

You can file your quarterly Oregon payroll tax report electronically on the internet, by e-mail, or on diskette. Or, if you have no payroll or subject hours to report, you can file by telephone (see page 9).

Filing for bankruptcy

If you file for bankruptcy, you need to notify separately each state agency that administers the payroll taxes and/or assessments to which you are subject. Despite combined reporting, each agency manages its own tax program.

Common pay agent

Oregon law does not allow Oregon combined pay-roll taxes to be reported by a common pay agent as defined in IRS Section 3504.

Oregon identification numbers

Your Oregon business identification number (BIN) is not the same as your registry number issued by the Oregon Secretary of State’s Corporation Divi-sion. If you do not know your BIN, contact the Department of Revenue at 503-945-8091 or 503-378-4988.

The correct format for a BIN is NNNNNNN-N (for example, 1234567-8).

It is important that you include your BIN at the top of all correspondence, returns, and payments that you file with the Department of Revenue, the Employment Department, and the Department of Consumer and Business Services.

Important: If the structure of your business has changed in the past year, you may need to obtain a new BIN. Contact the Department of Rev-enue at 503-945-8091 or 503-378-4988 for further information.

Updating a business address or telephone number

To update your business address and/or telephone number, please complete the “Change in Status Report” (150-211-157) or e-mail the information to [email protected].

latest payroll tax information

Sign up for “Payroll Tax—News,” a new e-mail list that allows subscribers to receive the latest payroll tax information such as interest rates, legislative issues, and return processing questions. Employers and other interested individuals can subscribe to the list to receive the latest information via e-mail at www.oregon.gov/DOR/BUS/payrolltaxnews.shtml.

Keep your records

WBF assessment-related payroll records must be kept for no less than the current year and three preceding years.

All other payroll records must be kept at least six years after filing the required reports.

Penalties for illegal tax rate manipulation

Under Oregon law, a person (employer) may not engage in or advise another person (employer) to engage in activity to transfer or acquire, or attempt to transfer or acquire, a trade or business or any portion of a trade or business solely or primarily for the purpose of obtaining a lower unemployment

insurance (UI) tax rate. If a person (employer) knowingly engages in such activity, the highest UI tax rate (currently 5.4 percent) will be assigned to that trade or business for the tax year in which the activity occurred and for the next three years. However, if the person (employer) is already subject to the highest tax rate for the year or if the amount of increase in the tax rate is less than 2 percent, an additional penalty tax rate of 2 percent will be added to the calculated tax rate. In addi-tion, if a person (employer) advises another person (employer) to engage in this activity, they may be assessed a civil penalty not to exceed $10,000. Criminal penalties for engaging in tax avoidance schemes may also be imposed.

Further information is available on the internet at www.oregon.gov/EMPLOY/TAX.

Independent contractor definition

Individuals who meet the statutory definition of an independent contractor are not employees and their compensation for services is not taxable wages. Beginning January 1, 2006, Oregon implemented a new definition of independent contractor for the Department of Revenue, Employment Department, Construction Contractors Board, and Landscape Contractors Board [see Oregon Revised Statute (ORS) 670.600]. More information concerning inde-pendent contractors is available on the internet at www.OregonIndependentContractors.com.

Small employers and withholding

Starting in 2006, the IRS implemented new rules, new processes, and a new form (Form 944) for des-ignated small employers, allowing them to file and pay their federal employment tax returns annually instead of quarterly. Oregon does not have a similar program for state payroll tax reporting.

Unless they qualify as an agricultural or domestic employer under Oregon law, small employers are required to file their entire state payroll tax liability, using Form OQ (Oregon Quarterly Tax Report), on a quarterly basis with the Department of Revenue. Generally, payments for unemployment insurance tax, Workers’ Benefit Fund assessment, TriMet transit tax, and Lane transit tax are due quarterly and should be paid when Form OQ is filed. But Oregon law does allow employers to make their state withholding payments no later than their federal payments.

For those employers instructed by the IRS to deposit annually, we ask you to voluntarily deposit

your Oregon withholding payment quarterly when you file your return. However, to waive late pay-ment penalties and interest that may occur when you file your return quarterly, but deposit your state withholding payment annually, you must submit a request to the Department of Revenue with a copy of your IRS notification.

More information concerning small employer filing requirements is available on the internet at www.oregon.gov/DOR.

• Form OTC—Oregon Combined Tax Payment Coupon. Form OTCs are mailed separately, by December 31 of each year, to every employer that does not pay using electronic funds transfer (EFT). If you need to order additional coupons, write the Oregon Department of Revenue, PO Box 14800, Salem OR 97309-0920, or call 503-945-8091 or 503-378-4988. When ordering, tell us how many coupons you need for the remainder of the year.

• Please use blue or black ink. Our automated system can only read these colors.

• Please do not use colored paper.

nOTE:Form OQ, Oregon Schedule B, and Form 132 are processed by the Employment Department using automated equipment. Form OTC and payments are processed by the Department of Revenue. To correctly apply payments, we must receive a Form OTC with every payment, including pay-ments made with your Form OQ. Form OTC is not required for payments made by EFT.

Other forms

• Form 013—Change in Status Report. Use this form to report changes in your business. Because many of our reports are processed electronically, changes written on Form OTC or Form OQ may not be seen and processed. See the “Change in Sta-tus Report” at the back of this booklet for detailed instructions. The “Change in Status Report” is also available on the internet at www.oregon.gov/DOR.

• Form WR—Oregon Annual Withholding Tax Reconciliation Report. Use this form to reconcile your state withholding account. Form WR is due by February 28 of each year. Form WR is available on the internet at www.oregon.gov/DOR.

REQUIRED FORMSIf you file using paper, using the forms in this booklet ensures faster and more accurate process-ing. Failure to use the correct forms or format may result in a penalty (see page 12 for more informa-tion on penalties).

If you use a tax preparer, please check to see if the preparer needs this booklet to file your reports. Your forms can be sent directly to your tax pre-parer. Fill out the “Change in Status Report” to change your forms’ mailing address to your tax preparer’s address for future mailings.

Use the Order Request at the back of this booklet to order additional reporting forms or reporting software. You may also order forms or software on the internet at www.oregon.gov/EMPLOY/TAX under “Reporting Methods.”

• Do not send photocopies of reports.

• Do not fax your reports.

These are considered out of format and may result in penalties.

Forms needed for reporting

• Form OQ—Oregon Quarterly Tax Report. Use this form to report state UI tax, state withholding tax, WBF assessment, TriMet, and LTD taxes.

Form OQ is also used to report withholding on pension/annuity payments.

• Oregon Schedule B—State Withholding Tax. Use this form only if state income tax withholding deposits are required semi-weekly or on a one-banking day basis. File Oregon Schedule B with Form OQ.

• Form 132—Employee Detail Report. If your busi-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 additional Form 132s using the Order Request at the back of this booklet. Forms that are incor-rectly formatted or photocopied may be returned, and a penalty may be assessed.

FIlInG THE COMBInED QUaRTERlY Tax REPORT

Who must file

You must file a Form OQ each quarter:

• As long as you are registered as an active employer with Oregon Department of Revenue or Oregon Employment Department, even if you had no payroll during the quarter. Reimbursing employ-ers and Local Government Employers Benefit Trust Fund employers also must file Form OQ.

• If you have paid individuals (workers, owners, officers) who are subject to Oregon’s workers’ compensation law or who are covered by workers’ compensation insurance through personal election, even if you have no payroll during the quarter.

• If you withhold on a distribution of pensions or annuities.

You must file Form 132:

• If you are an employer subject to UI law. Reim-bursing employers and Local Government Employers Benefit Trust Fund employers also must file Form 132.

You must file Oregon Schedule B:

• If you are required to deposit withholding taxes on a semi-weekly or a one-banking day basis.

When to file

See page 3 for the report due dates.

Filing options

Electronic filing is far more efficient, accurate, and less time consuming than paper filing. You can file electronically through the internet, e-mail, or by telephone.

• OTTER. You can file through the internet, e-mail, or on diskette using the computer-based “OTTER” (Oregon Tax Employer Reporting) soft-ware program. The software is free, user friendly, and popular with both large and small employers. Your data can be imported from separate payroll programs directly into the electronic reporting format or copied from one quarter to the next.

You may order OTTER by calling 503-947-1488, by using the order form in this book, or by down-loading the program from www.oregon.gov/EMPLOY/TAX.

• SETRON. Web-based SETRON (Secure Employer Tax Reporting On-line) reporting allows any employer to report over the internet regardless of operating system. SETRON is on the Employ-ment Department’s website at www.oregon.gov/EMPLOY/TAX. Remember to print a paper copy of your report to keep for your records.

• Telephone (IVR). If you are an employer who has no payroll or subject hours to report for all programs or for a particular quarter, you can file a “no payroll/no hours worked” report by telephone, 24 hours a day, 7 days a week. The telephone number is 503-378-3981. Confirmation numbers are not issued; however, do not hang up until you are notified at the end of the call that your report was accepted.

Option specifications

For reporting-option specifications, call the Employment Department at 503-947-1488 (option 3). Options also are available on the internet at www.oregon.gov/EMPLOY/TAX under: “Report-ing Methods.” You also may use the order form at the back of this booklet.

Oregon annual filing

• If you file federal Form 943, you may file your Oregon withholding reports once a year using Form WA. Agricultural employers subject to unemployment tax, WBF assessment, or transit tax must file Form OQ in addition to Form WA. Call the Oregon Department of Revenue at 503-945-8091 for more information.

• Employers with exclusively domestic (in-home services) employment may file the Combined Payroll Tax Reports annually. The annual forms are sent out by November of each year. Call the Oregon Employment Department at 503-947-1488 for more information.

amended reports or adjustments

To amend data on Form OQ, Schedule B, or Form 132. Copy the original report, make the necessary changes on the copy, clearly write “Amended” at the top of the form, write a brief explanation of why you are amending your report, and mail to: Oregon Department of Revenue, PO Box 14800, Salem OR 97309-0920. Do not use red ink. If you have a payment due, please include Form OTC with your payment.

To amend a report you filed using OTTER. Make the necessary corrections to your original report using the appropriate program. Print a paper copy of the corrected report, write “Amended” in large letters at the top of the corrected report, and write a brief explanation of why you are amending your report. Mail the paper copy of your corrected report to: Oregon Department of Revenue, PO Box 14800, Salem OR 97309-0920. Do not send your corrected report electronically. Do not use red ink. Do not highlight.

The time period allowable for adjustments to WBF assessment reports is the current calendar year and three preceding years. DCBS cannot initiate or accept adjustments to WBF reports or payments for any quarters that pre-date this period.

Failure to file

If you don’t file a correct and complete quarterly report, you may receive an assessment(s) based on available information. Penalty and interest may be charged on the amount assessed (see page 12).

PaYMEnT InSTRUCTIOnSOregon combined payments

Use current year OTC coupons. Oregon with-holding tax due dates are the same as the dates for depositing federal tax liability (see page 11 for guidelines for due dates). Unemployment insurance (UI) tax, Workers’ Benefit Fund (WBF) assessment, and transit tax payments are due quarterly.

• Please use blue or black ink. Our automated system can only read these colors.

• Make your check payable to “Oregon Depart-ment of Revenue.”

Making your Oregon combined payments

To make sure your payments are correctly applied:

• Complete and send in a Form OTC with every payment, when due, including payments made with your OQ.

• Indicate the amount paid to each tax program in the appropriate box. Do not include credits.

• Enter the quarter in the box to indicate when the payroll was paid to employees.

• Submit a separate coupon for each quarter.

• Do not alter coupons or use coupons from previ-ous years. Altering coupons or using the wrong coupon could result in a misapplied payment.

Send payments with Form OTC coupons to:

Oregon Department of Revenue PO Box 14800 Salem OR 97309-0920

Do not staple or tape your payment to Form OTC.

Payment record

Retain records of payments made to all programs for each quarter for use when you file Form OQ.

Electronic funds transfer (EFT)

You can make payments for combined payroll taxes using the Oregon Department of Revenue’s electronic funds transfer (EFT) program. This pro-gram allows you to make payments using a touch-tone telephone, a secure internet site, or through your financial institution.

Oregon Department of RevenuePO Box 14800Salem OR 97309-0920

Make check payable to:TOTAL PAYMENT (add all the boxes at left)

Workers’ Bene�t Fund Assessment

Lane Transit District Excise

TriMet District Excise

State Withholding

State Unemployment

Enter quarter payroll was paidto employees: (1, 2, 3, or 4)

OREGON COMBINED PAYROLL TAXPayment Coupon 150-211-053 (Rev. 9-06)

Form

OTC YEAR BUSINESS ID NO.

Date Received

} 12345678900000000091920400111

SaMPlE

You must pay your Oregon combined payroll taxes electronically if you are mandated to pay your fed-eral tax liability electronically.

If you do not meet the federal requirements for mandatory participation in the EFT program, you may participate on a voluntary basis.

A business is required to have an authorization agreement filed with the Department of Revenue before initiating EFT payments. Information and authorization agreements are available on the inter-net at www.oregon.gov/DOR or by calling the EFT help line at 503-947-2017.

alternate payment method

Multi-state employers who believe that federal withholding methods create an undue burden for them that is not shared by most other similar employers may request a different method of with-holding tax payments. You must submit a written request to:

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

Your written request must contain all the following information:

• The business name of the employer.• The Oregon business identification number.• The nature of the burden.• The remedy requested. • A proposed effective date of the modified with-

holding method.

You cannot use an alternative withholding method before the Department of Revenue has approved your request in writing and has designated the effec-tive date of the change. (Refer to ORS 316.191.)

Federal Form 944 filers

See small employer questions and answers on the Oregon Department of Revenue’s website at www.oregon.gov/DOR/BUS/filing.

If your total federal Oregon withholding tax liability is: tax payments are due:

• Less than $2,500 By the quarterly report due date for the quarter

• $50,000 or less in By the 15th of the month following payroll

the lookback period*

• More than $50,000 in Semi-weekly Deposit Schedule


If the day falls on a: Then pay taxes by:

Wednesday, Thursday, The following Wednesday

or Friday

Saturday, Sunday,

Monday, or Tuesday The following Friday

• $100,000 in a Within one banking day single pay period

* 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.

GUIDElInES FOR OREGOn WITHHOlDInG PaYMEnT DUE DaTES

Payrolls paid in:

Quarter 1 Jan–Feb–Mar

Quarter 2Apr–May–Jun

Quarter 3Jul–Aug–Sep

Quarter 4Oct–Nov–Dec

InTEREST

Unemployment insurance tax

Interest is assessed on unpaid or late paid unem-ployment insurance tax. The rate is 1.5 percent per month or fraction of a month after the payment is due. Payments are due the last day of the month following the quarter. Interest is assessed if the payment is one day late. Calculate interest on unpaid tax only. Do not calculate interest on previ-ously assessed interest or penalties.

Use this same calculation for Local Government Employers Benefit Trust Fund participants. Reim-bursing employers should not calculate interest. Interest due on unpaid balances is billed to these accounts.

PEnalTIES

Unemployment insurance tax

A late filing penalty may be assessed if Form OQ or the Employee Detail Report (Form 132) is filed more than 10 calendar days after the due date, and you have received a previous warning. This is in addition to interest due. The late filing penalty is $6 for each employee reported, with $75 minimum and $1,500 maximum penalty amounts. Incomplete reports also may be assessed a similar penalty. If no subject wages are reportable but the report is filed late, a $5 late filing penalty may be assessed.

In addition, if Form OQ or Form 132 are not cor-rectly formatted or are incomplete, they may be returned. If the out-of-format report is not resub-mitted before the tenth day following the due date, a 10 percent penalty may be assessed. To prevent this, send the reports electronically using the OTTER software the Employment Department provides (see page 9).

An additional penalty may be charged to employ-ers who have failed as of September 1 to:

• File all unemployment insurance tax reports:

—Form OQ—Oregon Quarterly Tax Report,or

—Form 132—Employee Detail Report, or

• Pay all unemployment insurance taxes due.

The penalty is 1 percent of the employer’s previous year’s taxable payroll.

State withholding and transit taxes

• You will be charged a 5 percent late payment penalty on any unpaid tax after the due date of the return.

• You will be charged an additional 20 percent penalty on any tax due as of the due date if Form OQ is filed more than one month late.

• You will be charged a 100 percent penalty on any tax due if Form OQs are not filed for three years in a row.


You are subject to a late filing penalty if Form OQ is filed or payment is received more than 10 calen-dar days after the due date. A civil penalty of up to $2,000 may be assessed for each violation if the pay-ment or Form OQ is not filed timely. Penalties will be assessed at 10 percent of the outstanding bal-ance, with a minimum of $50 for each violation.

In addition, if your account is audited for failure to report or inaccurate reporting, penalties up to $2,000 may be assessed for failure to respond timely to notices and orders associated with audit findings (see page 23 for details).


You will be charged interest on any remaining tax left unpaid after the due date. Employers should not calculate interest due. You will be billed for interest due on unpaid balances.


Interest is assessed on unpaid or late paid Workers’ Benefit Fund assessments. The rate of 9 percent per year may be charged on all overdue balances. If your account is assigned for collection, you will be responsible for the collection fee.

QUaRTERlY Tax REPORT (FORM OQ)line-by-line Instructions

Before you complete Form OQ, review the business name, mailing address, Oregon business identifica-tion number (BIN), and federal employer identifi-cation number (FEIN) to verify they are all correct. Make corrections on the “Change in Status Report” included at the end of this booklet.

The North American Industry Classification Sys-tem (NAICS) code is assigned by the Employment Department. Coding determination is based on information you supplied and reflects the primary activity for your company in Oregon. If you have questions regarding these codes, call 1-800-262-3912, ext. 7-1248 (toll-free within Oregon) or 503-947-1248.

line-by-line instructions

Number of covered workers for state unemploy-ment insurance. Complete this section if you are subject to unemployment insurance (UI). If you have questions on how to count workers, call 1-800-262-3912, ext. 7-1248 (toll-free within Oregon) or 503-947-1248.

The “monthly number of covered workers” you report on Form OQ should include all full-time and part-time workers who worked or received pay subject to unemployment insurance law during the payroll period which includes the 12th of the month. Some examples include:

• Daily pay period. Enter the number of workers on the daily payroll for the workday nearest the 12th of the month.

• Weekly, bi-weekly, or semi-monthly pay period. Enter the number of workers on the payroll for the period that includes the 12th of the month.

• Monthly pay period. Enter the number of workers on your monthly payroll.

• If there were no covered workers during any pay period, enter “0” in the appropriate boxes. Do not leave these boxes blank.

Add the numbers for the three months and place the sum in the Total (M1 + M2 + M3) box. This total is used to verify that the automated equipment has correctly read the monthly entries.

OQ columns

In each column, enter the total subject wages paid for each tax program this quarter. If you have ques-tions, refer to the specific program information in this booklet.

In each column, enter the total tax owed to each state program. If any of the amounts are less than zero, enter “0.” Do not enter any credit items. Any credit in one tax program may only be used in that same program. A credit may be used in a future quarter or refunded by request.

Column a. Unemployment Insurance (UI)

Box 1. Subject wages. This amount must be the same as line 1 (total subject wages) on Form 132. Include wages exceeding the taxable wage base for UI reporting purposes.

Box 2. Excess wages. Excess wages are wages above the taxable wage base for the year per employee. The taxable wage base for 2008 is $30,200 per employee per year. Reimbursing employers and Local Gov-ernment Employers Benefit Trust Fund participants leave this box blank.

Box 3. Taxable wages. Enter box 1A minus box 2A. Reimbursing employers leave this box blank.

Box 4. Tax rate. Use your current year’s UI tax rate. If you are subject to UI tax and no rate is printed, call the Employment Department at 503-947-1488. Reimbursing employers leave this box blank.

Box 5. Total tax. Multiply box 3A by box 4A. Round down to the nearest cent and enter the tax amount. Enter “0” if you had no UI tax this quarter.

Box 6. Tax prepaid this quarter. Enter the amount of UI tax prepaid or credits used this quarter. Include any credit amount that may have been overpaid in previous quarters where no refund was requested or issued.

UI tax payments are due once per quarter on the same day as the tax reports.

Box 7. UI penalty and interest owed. Enter the amount of penalty and interest owed if the report is submitted more than 10 days after the due date. To compute the penalty, multiply the number of employees by $6. The minimum penalty is $75. The maximum penalty is $1,500. If there were no employ-ees, the penalty is $5.

To calculate interest owed, multiply the unpaid tax owed by 0.015 for each month or fraction of a month after the date the payment is due. Interest is assessed even if the payment is one day late.

When calculating interest, use only the amount of unpaid tax. Do not calculate interest on previously assessed interest or penalties.

Box 8. Total due. Enter box 5A minus box 6A plus box 7A. If the amount is less than zero, enter “0.”

Column B. State withholding

Box 1. Subject wages. Enter total wages subject to income tax (salaries, commissions, and bonuses), paid to Oregon employees this quarter.

• If you are reporting withholding on pension or annuity distributions, enter the amount of distri-butions with Oregon withholding.

• This amount need not match box 1A.

• Enter “0” if you had no subject payroll this quarter.

Box 5. Total tax. Enter total Oregon tax withheld this quarter. Enter “0” on the wage and tax line of the appropriate column if you had subject payroll but no withholding tax to pay this quarter (see page 10 for deposit rules). Only numerical information entered in the state withholding tax column will be considered a filed return for that program. If you enter something other than a number in the state withholding tax column or leave that column blank, we will conclude you are communicating to us you are not subject to state withholding tax and you are not filing a return for purposes of state withholding tax. If you deposit:

• Quarterly—complete only box 5B.

• Monthly—complete boxes on line 15 (M1, M2, and M3) on Form OQ. Add boxes and enter the total into box 5B. Note: Box 5B and line 15 must total the same amounts.

• Semi-weekly or one-banking day depositors—complete and file Oregon Schedule B. Enter the total in box 5B. Note: Box 5B and Schedule B total must be the same amount.

Box 6. Tax prepaid this quarter. Enter the amount of withholding tax prepaid this quarter. Include any withholding credits used.

Box 8. Total due. Enter box 5B minus box 6B. If the amount is less than zero, enter “0.”

Column C. Tri-County Metropolitan Transportation District (TriMet)

Box 1. Subject wages. Enter wages paid for work done in the TriMet district. Enter “0” if there was no subject payroll in the district this quarter.

Box 4. Tax rate. The 2008 TriMet tax rate is 0.006618.

Box 5. Total tax. Multiply box 1C by box 4C. Round off to the nearest cent and enter the tax amount. If you are subject to TriMet but had no tax this quar-ter, enter “0” on the wage and tax line of the appro-priate column. Only numerical information entered in the TriMet Transit District tax column will be considered a filed return for that program. If you enter something other than a number in the TriMet Transit District tax column or leave that column blank, we will conclude you are communicating to us you are not subject to TriMet Transit District tax and you are not filing a return for purposes of TriMet Transit District tax.

Box 6. Tax prepaid this quarter. Enter the amount of TriMet tax prepaid this quarter. Include any TriMet credits used.

Box 8. Total due. Enter box 5C minus box 6C. If the amount is less than zero, enter “0.”

Column D. lane Transit District (lTD)

Box 1. Subject wages. Enter wages paid for work done in the Lane Transit District. Enter “0” if there was no subject payroll in the district this quarter.

Box 4. Tax rate. The 2008 LTD tax rate is 0.0064.

Box 5. Total tax. Multiply box 1D by box 4D. Round off to the nearest cent and enter the tax amount. If you are subject to LTD but had no tax this quarter, enter “0” on the wage and tax line of the appropri-ate column. Only numerical information entered in the Lane Transit District tax column will be considered a filed return for that program. If you enter something other than a number in the Lane Transit District tax column or leave that column blank, we will conclude you are communicating to us you are not subject to Lane Transit District tax and you are not filing a return for purposes of Lane Transit District tax.

Box 6. Tax prepaid this quarter. Enter the amount of LTD tax prepaid this quarter. Include any LTD credits used.

Box 8. Total due. Enter box 5D minus box 6D. If the amount is less than zero, enter “0.”

Workers’ Benefit Fund (WBF) assessment

Box 9. Total all hours and partial hours worked by all paid individuals (workers, owners, officers) subject to Oregon’s Workers’ Compensation law or covered by workers’ compensation insurance through personal election. Enter the total hours rounded down to the nearest whole (no fractions or decimals). (Note: hours reported for WBF assess-ment may differ from hours reported for UI tax.) If you have no hours to report for the quarter, enter “0.” More detail on determining hours worked is available at www.oregon.gov/DCBS/FABS/wbf.shtml or by calling 503-378-2372.

Box 10. Assessment rate. The current WBF assess-ment rate is 0.028. Employers contribute one-half of the hourly assessment amount and deduct one-half from workers’ wages.

Box 11. Multiply box 9 times box 10. Round down to the nearest cent. This is the total WBF assessment due for the quarter. If no assessment is due for the quarter, enter “0.”

Box 12. Enter the amount of prepaid WBF assessment or WBF assessment credits used this quarter.

Box 13. Subtract box 12 from box 11. This is the net WBF assessment amount due for the quarter. This amount should match the amount you enter in the “Workers’ Benefit Fund Assessment” box on Form OTC. If the amount is zero or less, enter “0.”

Box 14. Total payment due

Enter total payment due. Add boxes 8A, 8B, 8C, 8D, and 13. Do not include any credits. Make your payment to the Department of Revenue using elec-tronic funds transfer (EFT). Or make your check payable to “Oregon Department of Revenue.” Include a payment coupon (Form OTC) when you mail your check.

Note: You cannot use Form OQ to transfer credits between programs.

• Credit applied to another program:

Send a written request along with a copy of Form OQ to the agency that handles the program that has the credit.

Include the account name, BIN, tax program, quarter, and year where the credit exists. Give the same information for where you want the credit applied. Also include any notices or memos you’ve received about the credit.

• Credit refunded: Send a written request to the agency that handles

the program that has the credit. Include your account name, BIN, the word “Refund,” and the amount to refund. Also include any notices or memos you have received about the credit.

Box 15. Monthly summary of state withholding tax liability

This line is for those who are required to deposit withholding taxes on a monthly basis. Show the amount withheld in each month of the quarter then total the amount withheld during the quarter. The total must equal the total withholding tax reported in box 5B.

Do not include payments made for UI tax, WBF assessment, or transit taxes in these boxes.

If you deposit only once a quarter, enter the total amount withheld in box 5B.

If you are required to deposit withholding on a daily or semi-weekly basis, do not complete this line. Report withholding on Oregon Schedule B (see page 10 for determining how often withhold-ing must be deposited).

Box 16. Special payroll tax

Multiply box 3A by the special payroll tax (0.0009) for the first quarter of 2008 and by 0.0009 for the remaining three quarters. Do not add or subtract this amount from boxes 5A or 14. Reimbursing and Local Government Employers Benefit Trust Fund (LGEBTF) employers do not complete this section. Employers not required to pay FUTA are not required to complete this section. See page 17 for more information on the special payroll tax.

Signature

Preparer needs to sign Form OQ on the signature line and include a telephone number and the date the form was prepared. A signature is required even if you file a “0” report.

EMPlOYEE DETaIl REPORT (FORM 132)Report hours in the quarter worked and wages in the quarter received.

The number of hours worked subject to unemploy-ment insurance does not need to equal the num-ber of hours reported for Workers’ Benefit Fund assessment.

Enter “0” for an employee who did not work dur-ing the quarter but received wages (do not leave blank).

If you need to adjust hours worked in a previous quarter, file an amended Form 132 for that quarter (see page 9).

Column 5. Total subject wages paid this quar-ter. Wages are reported in the quarter paid to the employee regardless of when earned. Enter the total subject wages paid to each employee during the quarter regardless of whether the employee’s wages exceeded the taxable wage base.

To correct wages for another quarter, file an amended Form 132 for that quarter (see page 9).

Box 6. Page total. Enter the total subject wages for all employees reported on the page. Do not include the totals from other pages of this form.

Complete only if you pay unemployment insurance tax or reimburse the Employment Department for benefits paid.

Line 1. Total subject wages. Enter the total subject wages for all employees for the quarter. If you use multiple pages of Form 132, enter the total amount on page 1 only. This figure (total for all pages) must equal the amount in box 1A on Form OQ.

Column 2. Social Security number. Enter the Social Security number for each employee reported.

Column 3. Employee name. Enter the first initial and last name of each employee reported.

Column 4. Hours worked during this quarter. Enter the number of hours the employee worked in the quarter. If you do not track hours for a full-time employee, use 520 hours for the report. Do not report fractions or portions of an hour worked by an individual. Round up any portion of an hour to the nearest whole hour.

Report the actual number of hours worked, both straight time and overtime. Hours paid for sick leave, vacation leave, or any other hours paid where no work was performed are not reported. Even though these hours are not reported in col-umn 4, wages paid are still included in the subject wages in column 5.

SCHEDUlE BExample: How to complete Oregon Schedule B

line instructions—Oregon Schedule B

Complete Oregon Schedule B if you are required to deposit on a semi-weekly or one-banking day basis. This form includes a box for every day of the quarter. Locate the boxes that match your payroll dates. Enter the amount of Oregon tax withheld

from your employees during each payroll period. Enter the total tax withheld for each month in boxes A, B, and C. Enter the total of all the amounts in box D. The total should equal the total withholding tax reported in box 5B on Form OQ. DO NOT ENTER CREDITS.

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

1

3

4

5

6

7

2

8

9

10

11

12

13

14

15

16

17

18

19

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21

22

23

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31

A. Total Withholding Tax Liability for the First Month of the Quarter . . . . . . . . A

2500 00

450 00

1450 00

1600 00

300 00

6300 00

UnEMPlOYMEnT InSURanCE Tax InFORMaTIOnSubject wages

Generally, wages reportable for Federal Unemploy-ment Tax Act (FUTA) purposes are reportable for Oregon Unemployment Insurance (UI) tax. All wages, including draws, are reportable when paid to the employee. For example, wages paid April 1 for work performed in March are reportable in the second quarter (April–June).

An employee is any person (including aliens and minors) employed for pay by any employer subject to Employment Department law (ORS 657.015). This includes contract, casual, or temporary labor.

“Wages” means all compensation for service, unless specifically excluded by law. Payments other than cash are reportable at cash value in the quarter in which they are available to the employee.

The following are examples of subject wages:

• Payments for services to individuals in the employ of any type of corporation, except those electing to be excluded under the family corpora-tion provision (see excluded wages).

• Payments for agricultural and domestic (in-home services) labor by qualified employers.

• Payments for services to individuals in the employ of nonprofit organizations or political subdivisions.

• Payments for services performed in the employ of a church or other religious organization.

• Special payment for services, such as commis-sions, fees, bonuses, prizes, separation allow-ances, guaranteed wage payments, vacation, and holiday pay.

• Employee tips reported by the employer pursuant to Section 3306 of the Internal Revenue Code.

• Board provided to employees as part of their pay shall have a minimum value of 30 percent of the standard per diem meal rate within the conti-nental U.S. The rate per day will be rounded to the nearest dollar. The rate per month will be 30 times the rounded daily rate. If room is furnished in addition to board, no additional value will ordinarily be placed upon the room. If room and board are furnished at hotels, resorts, or lodges, or if a room only, an apartment, a house, or any other consideration is provided, the value for tax pur-poses will be the fair market value thereof. Note:

noncash payments for agricultural and domestic (in-home services) services are not subject.

Excluded wages

Examples of payments that are not subject under unemployment insurance law are:

• Payments to a proprietor or the proprietor’s child under 18, spouse, or parent.

• Payments to a legally responsible and registered general partner or partners of a Limited Liability Partnership (LLP) or to members of a Limited Liability Company (LLC).

• Noncash payments to workers in agricultural or domestic (in-home services) employment.

• Sick pay under workers’ compensation law.

• Closely held family corporations may elect, by written request, to exclude payments for services to corporate officers who:

— Are directors, — Have a substantial ownership interest in the

corporation, and — Are members of the same family, as parents,

stepparents, grandparents, spouses, sons-in-law, daughters-in-law, brothers, sisters, children, stepchildren, adopted children, or grandchildren.

However, those excluded may be subject to higher FUTA tax.

An election to exclude corporate officers must be in writing and will be effective the first day of the calendar quarter in which it is submitted for approval.

Unemployment insurance tax payments

UI tax payments are due quarterly in accordance with the payment instructions on page 10. When there is more owed than taxes, payments are applied first to legal fees, penalties, and interest. The remainder is applied to tax owed.

Special payroll tax

Effective in 2007, the Oregon Legislature authorized the unemployment insurance tax system to collect revenues using a special payroll tax which is due every quarter. Employers subject to federal unem-ployment insurance tax (FUTA) must deduct the

special payroll tax from the total state unemploy-ment tax to determine the amount reported as “con-tributions paid to the state unemployment fund” on Federal Unemployment (FUTA) Form 940.

The special payroll tax is collected to assist the Wage Security Fund (BOLI) and the Supplemental Employment Department Administration Fund (SEDAF). The BOLI fund pays final wages when a business closes and does not have sufficient reserves to make final payroll. The SEDAF fund is used to provide Employment Department services. Do not include the special payroll tax to calculate a credit when reporting on federal Form 940. To calculate “contributions paid to the state,” use two lines in item 3 on Form 940 (computation of tenta-tive credit), one for the first quarter, and one for the remaining quarters. The “state experience rating” for the first quarter is the unemployment insur-ance tax rate less 0.0009 and for the remaining three quarters it would be less 0.0009.

Example 1: An employer has a tax rate of 3 percent (0.03). In the second quarter, the experience rate will be 2.91 percent (0.0291), which is the tax rate less the 0.09 percent (0.0009) special payroll tax offset.

Example 2: Employers with the highest state unemployment tax rate, 5.4 percent (0.054), should not calculate the amount of the special payroll tax offset. The employer should use the unadjusted amount of taxes paid to the state as “contributions paid to your state unemployment fund.”

“Contributions actually paid to the state” should equal the amounts found on line 17 of Form OQ for each quarter. If the amounts paid were less than what is owed, report the amount actually paid. To obtain Form 940, contact the IRS at 1-800-829-3676. You may also download the forms from the internet at www.irs.ustreas.gov.

Employer ceases to be subject to UI tax

An employer who ceases to have sufficient employ-ment or payroll subject to ORS Chapter 657 must file an application for such a finding by the direc-tor of the Employment Department in accordance with ORS 657.415. Such exemption shall continue until the employer again qualifies as an employer as defined in ORS 657.

Employer account access

You can review your unemployment insurance account information anytime, day or night, on the internet by going to www.oregon.gov/EMPLOY/TAX. Just click on “Your Account Info Center,” enter the information to register your Personal Identification Number (PIN), and you can look at your information without having to contact the Employment Department.

Equal opportunity service provider

The Employment Department is an equal opportu-nity agency and does not discriminate in providing services on the basis of race, color, religion, sex, nation of origin, age, disability, political affiliation or belief, citizenship, or marital status. Auxiliary aids and services are available upon request to dis-abled individuals. Contact the nearest Employment Department office for assistance.

Employment office

Information on unemployment insurance tax laws is available by calling 503- 947-1488 for the Central Office in Salem. The TTY number is 711. Written inquiries may be sent to: Tax Section, Employment Department, 875 Union St NE, Salem OR 97311-0030. The e-mail address is [email protected] or visit our website at www.oregon.gov/Employ/TAX.

WITHHOlDInG Tax InFORMaTIOnWithholding on IRas, annuities, and compensation plans

The withholding of taxes from commercial annui-ties, employer-deferred compensation plans, and retirement plans is mandatory for the payer. However, an individual may choose to have no withholding. The payer must present federal Form W-4P or a similar form to the payee. The payee uses Form W-4P to show the exemptions for state withholding. Withhold as if the payments were wages, using the tax tables furnished by the Oregon Department of Revenue. The amount of withhold-ing per payee must be $10 or more.

• Withholding on pensions and annuities requires a separate Business Identification Number (BIN) from your payroll account because these are not payroll wages.

Oregon does not follow the federal backup withholding rules for pensions and annuities distributions.

The payer issues 1099s to the payees at the end of the year and files Form WR with the Oregon Department of Revenue.

For more information, call 503-945-8091.

Figuring withholding tax

The withholding tax tables have been updated effective January 1, 2007. To figure the amount of tax to withhold from an employee’s wages:

• Use the Oregon withholding tax tables. This infor-mation is available on the internet at www.oregon.gov/DOR. If you do not have internet access, you may call 503-945-8091 or 503-378-4988.

• For computer payroll systems, use the percentage formula in the Oregon withholding tax tables, avail-able on the internet at www.oregon.gov/DOR.

All Oregon employers must withhold tax from employee wages (including draws) at the time employees are paid. Taxes are withheld and reported in the quarter the employee is paid.

Employees who need additional state withholding can request information circular 150-206-643 from the Department of Revenue. Some employers must withhold and report state withholding tax even though they don’t have to withhold federal tax.

Subject wages

Some examples of taxable wages are:

• Salaries, commissions, bonuses, wages, fees, prizes, separation allowances, guaranteed wage payments, and vacation or holiday pay.

• Payments by a corporation, including S corpora-tions and professional corporations, to a corporate officer for services, including guaranteed wage payments for services.

• Wages paid when an employer-employee relation-ship exists between a husband and wife, domestic partners, or a parent and child.

Exempt wages

Oregon withholding law exempts wages paid for certain kinds of services, labor, employee allow-ances for the benefit of employer, and reimbursed employee business expenses. A list of exempt wages is in the Employer’s Guide For Doing Busi-ness in Oregon. Call the Oregon Business Informa-tion Center at 503-986-2200 to order a copy.

Figuring allowances

Use the number of allowances claimed by an employee on Internal Revenue Service Form W-4. Oregon does not have its own W-4 or W-4P. If an employee didn’t file a Form W-4, use “single 0” allowances. Don’t permit the allowances on W-4 if:

• The employee claims exempt status for state with-holding tax only, or

• The Oregon Department of Revenue or the Inter-nal Revenue Service tells you not to permit the allowances.

You must send a copy of Form W-4 to the Depart-ment of Revenue within 20 days after receiving it if the employee claims:

• More than 10 allowances.

• Exemption from federal or state tax, and the employee’s income is expected to exceed $200 per week.

• Exemption from state withholding tax but not from federal withholding tax.

Send copies to: W-4 Project Manager, PO Box 14560, Salem OR 97309-5011. Make sure that Form W-4 has complete information on both employer (including FEIN) and employee.

Payroll questions answered by e-mail

You can now receive answers to your payroll ques-tions by e-mail from the Oregon Department of Revenue. Send an e-mail with your questions to: [email protected].

Revenue field offices listed below

Forms and assistance are available at the offices shown below. Don’t send your reports or payments

Office address

Bend ..................951 SW Simpson Ave, Suite 100 Eugene ..............1600 Valley River Dr, Suite 310 Gresham ...........1550 NW Eastman Parkway, Suite 220 Lake Oswego ...6405 SW Rosewood St, Suite A Medford ............3613 Aviation Way, Suite 102 Newport ...........119 4th St NE, Suite 4

OREGOn DEPaRTMEnT OF REVEnUE FIElD OFFICES

Office address

North Bend ... 3030 Broadway Pendleton ...... 700 SE Emigrant Ave, Suite 310 Portland ........ 800 NE Oregon St, Suite 505 Salem Field ... 4275 Commercial St SE Building 2, Suite 180 Salem Main ... 955 Center St, Room 135

to these addresses. You also may call 1-800-356-4222 (toll-free within Oregon) or 503-378-4988 in Salem. The TTY number is 1-800-886-7204 (toll-free within Oregon) or 503-945-8617 in Salem. A message line is available all year for those who need assistance in Spanish. The number in Salem is 503-945-8618. Written inquiries may be sent to: Oregon Department of Revenue, 955 Center Street NE, Salem OR 97301-2555. The internet address is www.oregon.gov/DOR.

TRanSIT DISTRICT ExCISE Tax InFORMaTIOnThese tax programs are administered by the Oregon Department of Revenue for the Tri-County Metro-politan Transportation District (TriMet) and the Lane Transit District (LTD). They provide revenue for mass transit (ORS Chapter 267). Transit payroll (excise) tax is imposed on most employers who pay wages for services performed in the TriMet or LTD districts. If you use a payroll service, you may need to inform them of this tax.

TriMet service area

TriMet serves the Portland Metropolitan area, which includes parts of Multnomah, Washing-ton, and Clackamas counties. For information on TriMet boundaries, call 503-962-6466 or the Oregon Department of Revenue at 503-945-8091.

ZIP codes completely in TriMet district

ZIP codes partially in TriMet district9700797009970139701597019970229702397045

97055970609706297070970809708697089

97113971169712397124971409722497231

lTD service area

LTD serves the entire Eugene-Springfield urban area as well as several rural areas. Some ZIP codes may not coincide with district boundaries. For infor-mation on LTD boundaries, call 541-682-6100 or the Oregon Department of Revenue at 503-945-8091.

City Zip Code

Alvadore 97409Blue River 97413Coburg 97401Cottage Grove 97424Creswell 97426Dexter 97431Elmira 97437Eugene 97401Eugene 97402Eugene 97403Eugene 97404Eugene 97405Eugene 97406Eugene 97407Eugene 97408Eugene 97440Fall Creek 97438Finn Rock 97488Goshen 97401Jasper 97438Junction City 97448Lancaster 97448Leaburg 97489Lowell 97452Maywood 97413McKenzie Bridge 97413Pleasant Hill 97455Springfield 97477Springfield 97478Thurston 97482Trent 97431Veneta 97487Vida 97488Walterville 97488

Who must file a report?

All employers who have resident and non-resident employees working in the TriMet or LTD districts and who aren’t exempt (see “Exempt payroll” on page 22) must register and file with the Oregon Department of Revenue. If an employer doesn’t have employees working within the transit district bound-aries, the payroll isn’t subject to the transit tax.

Wages subject to transit districts

Wages means all salaries, commissions, bonuses, fees, or other items of value paid to a person for services performed within a transit district. See ORS 267.380 for further details. Transit district wages also include:

970059700697008970249702797030970349703597036970689720197202972039720497205

972069720897209972109721197212972139721497215972169721797218972199722097221

9722297223972259722797229972309723297233972369723997258972669726797268

• Contributions to a Simplified Employee Pension (SEP) made at the election of the employee.

• Payments for the purchase of IRC section 403(b) annuities under salary reduction agreements.

• Contributions to 401(k) retirement plans made at the election of the employee, including employer-matched contributions.

• Pick-up payments to governmental retirement plans under salary reduction agreements.

• Amount deferred under governmental deferred compensation plans.

• Any amount deferred under a nonqualified deferred compensation plan.

• Payment to an IRC408 Individual Retirement Account under salary reduction agreement.

Exempt payroll

The following are exempt from TriMet and LTD excise taxes:

• Federal government units.

• Federal credit unions.

• Public school districts.

• Organizations, except hospitals, that have quali-fied for exemption under ORS 267.380(1)(b).

• All foreign insurers are exempt.

• Insurance adjusters, agents, and agencies, as well as their office support staff, are exempt from transit tax to the extent that the business income is derived from insurance-related activity. Non-insurance income is taxable (ORS 731.840).

• Domestic service in a private home.

• Cafeteria plans.

• Casual labor.

• Services performed outside the district.

• Seamen who are exempt from garnishment.

• Employee trusts that are exempt from taxation.

• Tips paid by the customer to the employee.

• Wages paid to employees whose labor is solely connected to planting, cultivating, or harvesting seasonal agricultural crops.

The following are exempt from LTD but subject to TriMet:

• Public education districts.

• Public special service and utility districts.

• Port authorities.

• Fire districts.

• City, county, and other local government units.

How to figure the transit tax

The transit tax is imposed directly on the employer. It is imposed only for the amount of gross payroll paid for services performed within the TriMet or LTD district.

Use the current TriMet or LTD tax rates. If you are subject to TriMet or LTD transit tax and no tax rate is printed, contact the Oregon Department of Rev-enue at 503-945-8091.

The Workers’ Benefit Fund (WBF)

The Workers’ Benefit Fund supports programs that directly benefit injured workers and the employ-ers who help them return to the work force. More information about specific programs supported by the fund is on the internet at www.oregon.gov/DCBS/FABS/wbf.shtml.

Note: The Workers’ Benefit Fund (WBF) assess-ment is separate from your workers’ compensation insurance premium and does not provide you with insurance coverage.

Workers subject to Workers’ Benefit Fund assessment

Individuals subject to the WBF assessment are (1) all paid workers for whom the employer is required by Oregon law to provide workers’ com-pensation insurance coverage, and (2) all paid individuals (workers, owners, officers) that may otherwise be nonsubject, but whom the employer covers under workers’ compensation insurance through personal election.

If you do not file Form OQ during the time you have subject workers or personal elections, you may be assessed a penalty.

Workers’ Benefit Fund assessment reporting exemptions

You may qualify for exemption from reporting the WBF assessment if you do not have any paid indi-viduals (including yourself) covered by your work-ers’ compensation insurance policy. To request an exemption from WBF assessment reporting, complete and mail to DCBS a “Corrections and Changes Notification for WBF Assessment” form. The form is available on the internet at www.oregon.gov/DCBS/FABS/wbf.shtml or by calling 503-378-2372.

You must resume reporting the WBF assessment as soon as you have paid subject workers or elect to cover yourself or other paid nonsubject individu-als with your workers’ compensation insurance policy.

Hourly assessment

The assessment is based on the total number of hours and partial hours worked by all paid sub-ject workers in the same pay period that is used to compute the employee’s withholding. The hourly

WORKERS’ BEnEFIT FUnD aSSESSMEnT InFORMaTIOn assessment rate is printed on Form OQ in box 10 and may change annually.

Penalties for failure to respond timely to audit findings

DCBS audits the WBF assessment accounts of employers that fail to report or report inaccurately. The cost of following up on employers that report inaccurately and fail to respond to audit findings increases the cost of the workers’ compensation system to everyone. To more effectively ensure fair and equitable distribution of costs, DCBS is authorized under ORS 656.745 and Oregon Admin-istrative Rule (OAR) 436-070-0050 to issue civil penalties up to $2,000 for failure to respond timely to notices and orders associated with audit find-ings. If you use a payroll service provider, please be advised that it is still your responsibility to ensure timely response to all audit findings.

How to update or close your Workers’ Benefit Fund assessment account

If you change ownership, discontinue business, or cease to employ workers, contact your workers’ compensation insurer with the corrected infor-mation. When your insurer terminates or files an endorsement to the guaranty contract with the Workers’ Compensation Division of DCBS, your WBF assessment account also will be corrected or closed. Your insurance coverage and claims liability remain unchanged and in effect until your insurer notifies the Workers’ Compensation Divi-sion directly.

You also may use the “Corrections and Changes Notification for WBF Assessment” form to expedite updating or closing your WBF assessment account for reporting purposes. This form is available on the internet at www.oregon.gov/DCBS/FABS/wbf.shtml or by calling 503-378-2372.

Workers’ Benefit Fund assessment questions

If you have questions about your WBF assessment account, contact DCBS by e-mail at [email protected] or by mail at:

Workers’ Compensation Assessments Section DCBS/Fiscal and Business Services PO Box 14480 Salem OR 97309-0405

FORM

WR 2008Business Name Business Identification Number (BIN)

150-206-012 (Rev. 12-07) Please read the instructions on the back ➔

OREGON ANNUAL WITHHOLDING TAX

RECONCILIATION REPORTReturn Due Date: February 28, 2009

Department Use OnlyDate Received

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.

Use your 2008 OQ forms. See the instructions on the back. Tax Reported

Explanation of difference ____________________________________________________________________________________

___________________________________________________________________________________________________________

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

• 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.

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

Signature

X

Date

Print name Title Telephone Number

( )

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

Federal Employer Identification Number (FEIN) Number of W-2s

Filing requirements

All Oregon employers who pay state withholding tax must file Form WR, Oregon Annual Withholding Tax Reconciliation Report. The 2008 form is due February 28, 2009. If you stop doing business during 2008 or no longer have employees, Form WR is due 45 days after your final payroll.

To amend data on Form WR, make a copy of the orig-inal Form WR and make the necessary changes on the copy. Write “Amended” at the top of the form. Attach any necessary amended OQ forms to the amended Form WR. Send your amended forms to the address shown below.

Oregon employers who fail to file Form WR may be charged a penalty of $100.

How to fill out Form WR

Write your business name and Oregon business iden-tification number (BIN) in the spaces shown. If you received a personalized booklet, your name and busi-ness identification number will be filled in. Follow the instructions below for each line number.

Line 1 through Line 4. Fill in the total Oregon tax re-ported for each quarter (use the amount from box 5B of your 2008 OQ forms).

Line 5. Total. Total amount from all quarters reported.

INSTRUCTIONS FOR FORM WR

150-206-012 (Rev. 12-07)

Line 6. Enter the total Oregon tax withheld from your employees’ W-2s or 1099R forms.

Line 7. Enter the difference between line 5 (total tax paid) and line 6 (total tax shown from W-2s or 1099Rs).

If line 6 is larger than line 5, you owe additional tax (shown on line 7). If line 6 is smaller than line 5, you have overpaid your tax and have a credit. If the amount on line 7 is zero, your state withholding account balances.

Please give an explanation of the difference on the lines provided.

If you have overpaid, the credit may be applied to a future quarter. The credit may not be used for another tax program. If you want the credit refunded, send a written request, or you may use the explanation lines to request your refund.

If you owe tax, please include a payment. Do not staple or tape your payment to Form WR. Be sure to remove and retain any check stubs.

Sign and date your completed Form WR. Print your name and telephone number. Mail Form WR to:


— ImPORTAnT —mail your Form WR separately from your 2008 4th quarter Form OQ.

make a copy for your records.

Do Not Staple; Use TapeOrder Form

Fold Here Last

ReQUeST FOR ADDITIONAL FORMS, FILINg SOFTWARe, SpeCIFICATIONSUse 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 telephone, (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.

Check Items:

_____ OTTeR program for filing through internet, by e-mail, or on diskette

Telephone Number: ( )

_____ plain paper Specifications (plain 20# bond paper also may be used for making reports)

Fold Here First

personalized preprinted Forms (specify amount)

_____ Current Year Report packet Check quarters for which forms are needed.

(1st)

(2nd)

(3rd)

(4th)

_____ Extra Current Year Forms 132 (how many)

Blank Oregon Combined payroll Tax Forms(specify year and amount)*

Year Form OQ Schedule B Form 132

______ ______ ______ ______ ______ ______ ______ ______ * Large forms orders may require a payment. The cost is 4 cents per page. If your order exceeds 100 copies of any kind, we will call you before sending the ordered forms. Be sure your telephone number is listed so we can contact you.

To order Form OTC (Oregon Tax Coupon), call 503-945-8091.

employment Department—Tax875 Union Street NeSalem OR 97311-0030

ATTN: FORMS

Business Name ______________________________________________________

Physical or ______________________________________________________ Mailing Address ______________________________________________________

Telephone Number ______________________________________________________

FEIN ______________________________________________________

A. Sold, leased, or otherwise transferred: All or Part of the business, to:

Business Name: __________________________________________________________________________ Date of Sale: _____________________________

New Owner’s Name: ______________________________________________________________________ Telephone : ______________________________

Address: _________________________________________________________________________________________________________________________

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. ________________________

CHANGE IN STATUS REPORT • If you have workers’ compensation insurance, you must also notify your insurer.

Has your business name, mailing address, telephone number, or federal employer identification number (FEIN) changed? Check this box and fill in the change(s) below.

Has the address where your forms are delivered changed? Check this box and fill in the change(s) below.

( )Oregon Business

Identification Number (BIN)

NATURE OF CHANGE: (Please check as appropriate) If an entity change, see instructions.

150-211-157 (Rev. 12-07)

Fax to: 503-947-1700 -or-

Mail to: Employment Department 875 Union St NE, Rm 107 Salem OR 97311-0030

X

(mm/dd/yy)

Federal Employer Identification Number (FEIN)

( )

( )

Change in Status Report InstructionsAs an employer you must notify the Employment Department, the Department of Revenue, and your workers’ compensation insurer of any change in your business.

Examples of changes to report on the Change in Status Report are:

• Address change.• Name change.• Federal employer identification number (FEIN)

change, only if printed incorrectly on your forms.• Dissolution of sole proprietor, partnership, corpo-

ration, or a limited liability company. NOTE: New businesses need to complete a Com-

bined Employers Registration.• Partial or complete sale, lease, or transfer of business.• Change in corporate officers or partnership.• Using leased employees.• Closing or beginning operations in a transit district: — If you are an employer who is paying wages

earned in the TriMet and/or Lane Transit District you must register and file with the Oregon Depart-ment of Revenue. Wages include all salaries, com-missions, bonuses, fees, payments to a deferred compensation plan, or other items of value.

— If you are an employer who has recently started working in the TriMet and/or Lane Transit District, you are subject to this tax (see the Oregon Combined Payroll Tax booklet for cities and ZIP codes).

— If you are an employer who has recently moved from the TriMet and/or Lane Transit District, you are no longer subject to this tax (see the Oregon Combined Payroll Tax booklet for cities and ZIP codes).

— The TriMet District includes parts of three counties in the Portland metro area: Multnomah, Wash-ington, and Clackamas. For TriMet boundary questions call 503-962-6466.

— Lane Transit District (LTD) serves the Eugene-Springfield metro area. For LTD boundary ques-tions call 541-682-6100.

• Closing the business completely.Entity changes in your business that require comple-tion of a new Combined Employers Registration form include, but are not limited to:

• Changing from a sole proprietorship to a partnership or corporation.

• Changing from a partnership to a sole proprietorship or corporation.

• Changing from a corporation to a sole proprietorship or partnership.

• Changing of members in a partnership of five or fewer partners.

• Adding or removing a spouse as a liable owner.• Changing from a sole proprietor, corporation, or

partnership to a limited liability company.

150-211-157 (Rev. 12-07) Form 013

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.

Oregon Department of Revenue955 Center Street NESalem OR 97301-2555

Oregon Combined Payroll Tax Report

How to ensure that your report is processed on time

✓ Do you use a tax preparer? If so, they may need this booklet to file your reports.

✓ Double-check your math.✓ When sending a payment

by check, you must include Form OTC.

✓ If you have no payroll or subject hours worked during a quarter, enter a “0” in the boxes on lines 1, 5, 9, and 11 for each tax program to which you are subject.

✓ File electronically. See page 8 for details.

2009Oregon Department of Revenue

Oregon Employment Department

Oregon Department of Consumer & Business Services

150-211-155 (Rev. 12-08)

Forms and Instructions For Oregon Employers

— FORM OQ OREGON QUARTERLY TAX REPORT

— OREGON SCHEDULE B

— FORM 132 EMPLOYEE DETAIL REPORT

— FORMS ORDER REQUEST

— FORM 013 CHANGE IN STATUS REPORT

— FORM WR OREGON ANNUAL WITHHOLDING TAX RECONCILIATION REPORT

2009 Oregon Combined Tax Payment Coupons (Form OTC) are mailed separately.

Plain Language Improvements:

• Three agencies and eight committee members were involved in the revisions

• Two pages eliminated from new version

• Difficultwordsreplacedwithsimpleones

After

Table of Contents

State withholding, TriMet, LTD taxes

OREGON DEPARTMENT OF REVENUE (DOR)

Salem: 503-945-8091 or 1-800-356-4222TTY users: 503-945-8617Internet: www.oregon.gov/DORE-mail: [email protected]

Reporting forms: Oregon Quarterly Tax Report—Form OQ Oregon Schedule B Oregon Annual Withholding Tax Reconciliation

Report—Form WR Change in Status Report—Form 013


OREGON DEPARTMENT OF CONSUMER & BUSINESS SERVICES (DCBS)

Assessment questions:Salem: 503-378-2372Internet: www.oregon.gov/DCBS/FABS/wbf.shtmlE-mail: [email protected]

Subjectivity questions:Salem: 503-947-7815 or 1-888-877-5670E-mail: [email protected]

Reporting form: Oregon Quarterly Tax Report—Form OQ

Use the numbers below if you need assistance.

Filing Due Dates for Quarterly Reports, Where to File and Pay ............................................................. 3New Information ............................................................................................................................................ 4Tips for Successful Reporting........................................................................................................................ 4Important Information ................................................................................................................................... 5Required Forms ............................................................................................................................................... 6Filing the Combined Quarterly Tax Report ................................................................................................ 7Payment Instructions ..................................................................................................................................... 9Guidelines for Oregon Withholding Payment Due Dates ...................................................................... 10Penalties and Interest ................................................................................................................................... 11Credits ............................................................................................................................................................ 12Quarterly Tax Report (Form OQ) Instructions ......................................................................................... 12Employee Detail Report (Form 132) Instructions .................................................................................... 15Schedule B Instructions ................................................................................................................................ 15Unemployment Insurance (UI) Tax Information ..................................................................................... 16Withholding Tax Information ..................................................................................................................... 18Transit District Excise Tax Information ..................................................................................................... 20Workers’ Benefit Fund (WBF) Assessment Information ......................................................................... 22

State unemployment insurance tax

OREGON EMPLOYMENT DEPARTMENT (OED) Salem: 503-947-1488 TTY users: 711Internet: www.oregon.gov/EMPLOY/TAXE-mail: [email protected]

Reporting forms: Oregon Quarterly Tax Report—Form OQ Employee Detail Report—Form 132 Change in Status Report—Form 013 Order Request form

Payments for all tax programs

Payment coupons (Form OTC) are mailed sepa-rately to employers. You must include one with each payment.

To order OTCs call:Salem: 503-945-8091 or 503-378-4988

Electronic funds transfer (EFT)EFT Help Line: 503-947-2017

Other internet addressesHow to Start a Business in Oregon and Employer’s Guide for Doing Business in Oregon are available at www.filinginoregon.com.

Federal payroll tax and FUTA forms are available at www.irs.gov.

Filing Due Dates for Quarterly Reports Quarter Quarter Ending Date Report Due Date

1st — Jan–Feb–Mar March 31, 2009 April 30, 2009

2nd — Apr–May–Jun June 30, 2009 July 31, 2009

3rd — Jul–Aug–Sep September 30, 2009 October 31, 2009

4th — Oct–Nov–Dec December 31, 2009 January 31, 2010

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 inPaper form

All paymentsForm OTC(see page 9)

All reports onMagnetic Media(CD / diskette* in federal format)

Form WRAnnual Withholding TaxReconciliation Report


PO Box 14800 Salem OR 97309-0920

Mail to: Tax Section, Room 107

Employment Department 875 Union St NE Salem OR 97311-0030


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, 503-378-4988, or 1-800-356-4222 (toll free from an Oregon prefix) or the Oregon Employment Department, 503-947-1488.

All reports usingEmployment Department

software(see page 8)

Send electronically

*After January 31, 2010, we will no longer accept diskettes. We will continue to accept CDs.

Employers of Oregon nonresidents

You must withhold Oregon income tax from all wages earned by nonresident employees for their services performed in Oregon, unless their Oregon earnings for the year will be less than the stan-dard deduction amount for their filing status. The Oregon standard deduction amounts for tax year 2009 are:

Single, married or RDP* filing separately ....$1,945Head of household ...........................................$3,135Married/RDP filing jointly ...............................$3,895Qualifying widow(er) ......................................$3,895

Nonresident employees with wages more than their standard deduction amount must file an Oregon nonresident income tax return.

Nonresident employees with Oregon wages less than their standard deduction still may ask you to withhold tax. Usually, this is because they have additional Oregon income from other sources.

*Registered domestic partner

Tax rates

• The Workers’ Benefit Fund (WBF) assessment rate is 0.028.

• The taxable wage base for unemployment insur-ance (UI) is $31,100.

• Tri-County Metropolitan Transportation District (TriMet) tax rate is 0.006718.

• Lane Transit District (LTD) tax rate is 0.0065.

Oregon income tax withholding—Information circular

Information about Oregon income tax withholding is available at www.oregon.gov/DOR/BUS/with-holding.shtml.

Magnetic media

After January 31, 2010, we will no longer accept diskettes. We will continue to accept CDs.

New Information

Tips for Successful ReportingWhen you report all required information correctly, you can avoid delays in the processing of your forms. Delays may result in penalties, interest charges, and other fees that you may be required to pay if you don’t report accurately and on time.

How to avoid common errors

• Use the correct Oregon business identification number (BIN).

• Put the BIN and quarter/year on each report form in the appropriate box.

• Use the correct tax rates.

• If filling out the forms by hand, use only blue or black ink.

• If using nonprefilled forms, make sure to include name and address.

• Keep copies of forms OQ, 132, OTC, and Schedule B for your records.

• Report whole hours on Form OQ (WBF assessment) and on Form 132.

Helpful websites

• Payroll tax basics: www.oregon.gov/DOR/BUS/payroll_basics.shtml.

• Oregon transit payroll taxes for employers; includes transit rates: www.oregon.gov/DOR/BUS/IC-211-503.shtml.

• Most common questions: www.oregon.gov/DOR/BUS/faq-withhold.shtml.

• IRS: www.irs.gov/businesses/small/article/ 0,,id=176943,00.html, and

www.irs.gov/businesses/small/article/ 0,,id=102767,00.html.

Important InformationOregon Department of Revenue (DOR), Oregon Employment Department (OED), and Department of Consumer and Business Services (DCBS) rules differ. Please read all instructions carefully. If you have questions, please contact the appropriate agency (see page 2).

What is a filed return?

While there are multiple tax and assessment programs represented on the Oregon Quarterly Tax Report, the following are filing requirements for state withholding, Tri-County Metropolitan Transportation District (TriMet), and Lane Transit District (LTD) tax programs administered by the Oregon Department of Revenue (DOR).

• Only columns filled in with numerical informa-tion will be considered a filed return for that program.

• If you have no payroll or hours worked during a quarter, enter a “0” in the boxes on lines 1, 5, 9, and 11 for each tax program to which you are subject.

Employer new hire reporting program

All Oregon employers must report new and rehired employees to the Oregon Department of Justice’s Division of Child Support within 20 days from their hire date. For information on the law and reporting procedures, contact: Department of Justice Employer New Hire Reporting Program 1495 Edgewater St NW Salem OR 97304 503-378-2868 Fax: 503-378-2863 or 877-877-7415 E-mail: [email protected] www.oregon.gov/DOJ

Use capital letters

Our electronic processing equipment can read your reports more accurately if you fill them out using all capital letters.

Please help us avoid processing errors and sending you unnecessary notices by using CAPITAL LET-TERS ONLY on your reports.

Withholding tax tables

The Oregon withholding tax tables were updated January 1, 2007. The tables are available at www.

oregon.gov/DOR. If you don’t have internet access, call 503-945-8091.

Reporting hours may differ

The number of subject hours reported for UI tax on the Wage Detail Report (Form 132) may not equal the number of subject hours reported for the WBF assessment in box 9 on Form OQ (see pages 14–15).

Reporting subject wages

Total wages reported for UI and for withholding may differ depending on the subjectivity require-ments for each program (see page 16, OED; page 18, DOR).

Easy, free electronic filing

You may file your quarterly Oregon payroll tax report electronically on the internet, by e-mail, or on CD/diskette. If you have no payroll or subject hours to report, you have another option: file by telephone (see page 8).

Filing for bankruptcy

If you file for bankruptcy, you need to notify separately each state agency that administers the payroll taxes and/or assessments to which you are subject.

“Common pay agent”

Oregon law doesn’t allow Oregon combined pay-roll taxes to be reported by a “common pay agent” as defined in IRS Section 3504.

Oregon identification numbers

Your Oregon business identification number (BIN) is not the same as your registry number issued by the Oregon Secretary of State’s Corporation Division. If you don’t know your BIN, call DOR, 503-945-8091 or 503-378-4988.

The correct format for a BIN is NNNNNNN-N (for example, 1234567-8).

You must include your BIN at the top of all cor-respondence, returns, and payments that you file with DOR, OED, and DCBS.

Important: If the structure of your business has changed, call DOR, 503-945-8091 or 503-378-4988.

Updating a business address or telephone number

To update your business address or telephone num-ber, please e-mail the information to [email protected], or complete and mail the Change in Status Report (150-211-157).

Latest payroll tax information

Sign up for “Payroll Tax—News,” an e-mail list that allows subscribers to get the latest payroll tax informa-tion, such as interest rates, legislative issues, and return processing questions. Subscribe to the list at www.oregon.gov/DOR/BUS/payrolltaxnews.shtml.

Keep your records

You must keep WBF assessment-related payroll records for at least four years.

You must keep all other payroll records for at least six years after filing the required reports.

Penalties for illegal tax rate manipulation

Under Oregon law, an employer may not engage in or advise another employer to engage in activity to transfer or acquire, or attempt to transfer or acquire, a trade or business or any part of a trade or busi-ness solely or primarily for the purpose of getting a lower UI tax rate.

If an employer knowingly engages in such activity, the highest UI tax rate (currently 5.4 percent) will be assigned to that trade or business for the tax year in which the activity occurred and for the next three years. However, if the employer is already subject to the highest tax rate for the year, or if the amount of increase in the tax rate is less than 2 percent,

an additional penalty tax rate of 2 percent will be added to the calculated tax rate.

Also, if an employer advises another employer to engage in this activity, the advising employer may be charged a civil penalty of up to $10,000. Criminal penalties for engaging in tax avoidance schemes also may be imposed.

For more information, visit www.oregon.gov/EMPLOY/TAX.

Independent contractors

To be an independent contractor, workers must meet the statutory definition in ORS 670.600. This law covers DOR, OED, Construction Contractors Board, and Landscape Contractors Board.

The laws covering the Workers’ Compensation Division of DCBS and the Bureau of Labor and Industries (BOLI) are a little different. Contact these agencies for more information.

Misclassifying employees as independent contractors can be costly to an employer.For more information about independent contractors, visit www.Oregon-IndependentContractors.com.

Small employers and withholding

Small employers, unless they qualify as an agri-cultural or domestic household employer under Oregon law, must file quarterly with DOR using Form OQ.

For more information about small employer fil-ing requirements, visit www.oregon.gov/DOR, select Business Taxes > Filing and Paying > Small Employer Q & A.

Required FormsIf you file paper forms, using the forms in this booklet ensures faster and more accurate process-ing. If you don’t use the correct forms or format, you may be charged a penalty (see page 11).

We process paper forms electronically. It is critical to successful reporting to use the correct format and color. We may return forms that are incorrectly formatted or photocopied, which may result in a penalty.

To avoid these problems, please:

• Use only blue or black ink.

• Use only white paper.

• Use only original forms. Don’t photocopy or fax your reports. Copied and faxed reports are con-sidered out-of-format and you may be charged penalties if you use them.

If you use a tax preparer, please check with them to see if they need this booklet to file your reports. Your forms can be sent to your tax preparer. Fill out the Change in Status Report to change the mailing address to your tax preparer’s address.

Use the Order Request at the back of this booklet to order more reporting forms or reporting software.

You may also order forms or software at www.oregon.gov/EMPLOY/TAX under Reporting Methods.

Forms needed for reporting

Form OQ—Oregon Quarterly Tax Report. File these each quarter to document how you calculate the amounts of withholding tax, UI tax, TriMet, and Lane Transit District taxes, and the WBF assess-ment you owe.

Also use it to report withholding on pension/annu-ity payments.

Oregon Schedule B—State Withholding Tax. For withholding tax only. Use this form only if you must make semi-weekly or daily state income tax withholding deposits. File Schedule B with Form OQ to document withholding tax deposit amounts by deposit date.

Form 132—Employee Detail Report. For UI tax only. File quarterly with Form OQ to detail, by employee, the subject wages and hours each employee worked to calculate the amount of UI tax you owe.

Filing the Combined Quarterly Tax Report

Form OTC—Oregon Combined Tax Payment Cou-pon. File with each payroll tax payment to show how the amount paid is to be distributed among withholding tax, UI tax, TriMet and Lane Transit District taxes, and the WBF assessment.

Other forms

Form 013 – Change in Status Report. Use this form to notify DOR and OED about changes to your business, such as:

• Changing business address and/or name,

• Correcting a federal employer ID number (FEIN),

• Selling or closing the business,

• No longer working in a transit district,

• Starting in a transit district.

If the structure of your business changes, you may need to complete the Combined Employers Registration. Please call 503-945-8091 for more information

Because we process reports and payments elec-tronically, our computers may not see and process changes you write on Form OQ or Form OTC.

Form WR—Oregon Annual Withholding Tax Reconciliation Report. Form WR is required by all employers who withhold state income tax from their employees. It is filed annually by employers to reconcile the Oregon state withholding taxes reported to DOR with all Oregon W2s and 1099s issued to your employees. If you stop doing busi-ness or no longer have employees, Form WR is due 45 days after your final payroll.

Who must file

You must file a Form OQ each quarter if you:

• Are registered as an active employer with DOR or OED, even if you had no payroll during the quarter. Reimbursing employers and Local Gov-ernment Employers Benefit Trust Fund employers also must file Form OQ.

• Pay workers subject to Oregon’s workers’ compen-sation law, or owners or officers who are covered by workers’ compensation insurance through personal election.

NOTE:Form OQ, Oregon Schedule B, and Form 132 are processed by OED using automated equipment. Form OTC and payments are processed by DOR. To correctly apply pay-ments, send a Form OTC with every pay-ment, including payments made with your Form OQ. Form OTC is not required for payments made by EFT.

• Withhold on a distribution of pensions or annuities.

You must file Oregon Schedule B if you:

• Are required to deposit withholding taxes on a semi-weekly or a one-banking-day basis.

You must file Form 132 if you:

• Are an employer subject to UI law. Reimbursing employers and Local Government Employers Ben-efit Trust Fund employers also must file Form 132.

When to file

See page 3 for report due dates.

Filing options

Instead of filing by paper, consider filing electroni-cally. Electronic filing is faster and more efficient and accurate than paper filing. You can file elec-tronically through the internet, or by e-mail or telephone.

• OTTER. You can file through the internet, e-mail, or on CD/diskette using the computer-based “OTTER” (Oregon Tax Employer Reporting) soft-ware program. The software is free, user friendly, and popular with large and small employers. Your data can be imported from separate payroll programs directly into the electronic reporting format or copied from one quarter to the next.

You may order OTTER by downloading the pro-gram from www.oregon.gov/EMPLOY/TAX, by calling 503-947-1488, or by using the order form at the back of this booklet.

• SETRON. Web-based SETRON (Secure Employer Tax Reporting On-line) reporting allows any employer to report over the internet regard-less of their operating system. SETRON is at www.oregon.gov/EMPLOY/TAX. Remember to print a paper copy of your report to keep for your records.

• Telephone (IVR). If you are an employer who has no payroll or subject hours to report for all programs for a particular quarter, you can file a “no payroll/no hours worked” report by tele-phone. IVR is available 24 hours a day, seven days a week. Call 503-378-3981. Confirmation numbers aren’t issued. Stay on the line until you are notified at the end of the call that your report was accepted.

Option specifications

For reporting-option specifications, call OED, 503-947-1488, option 3. Options also are available at www.oregon.gov/EMPLOY/TAX under “Report-ing Methods.” You also may use the order form at the back of this booklet.

Oregon annual filing

• If you file federal Form 943, you may file your Oregon withholding reports once a year using Form WA. Agricultural employers subject to unemployment tax, WBF assessment, or transit tax must file Form OQ in addition to Form WA. Visit www.oregon.gov/DOR/BUS/IC-206-628.shtml, or call 503-945-8091 for more information.

• Domestic household employers with employees doing only in-home services may file the Com-bined Payroll Tax Reports annually using Form OA. The forms are sent by November 15 of each year. Call OED, 503-947-1488 for more informa-tion, or e-mail questions to [email protected].

Amended reports or adjustments

To amend a report you filed using paper or SETRON:

• Fillable amended report forms are at www.ore-gon.gov/EMPLOY/TAX/TaxDocs.shtml. These forms can also be ordered by calling 503-947-1548, option 3.

• Complete the Form OQ/OA–AMENDED, Sched-ule B–AMENDED, or Form 132–AMENDED.

To amend a report you filed using OTTER:

• Make the corrections in OTTER.

• Print a paper copy of the amended report.

• Write “Amended” in large letters at the top of the amended report.

• Circle the boxes that have been changed from the original report. Don’t use a highlighter.

• Write a brief explanation on the back of the form that tells why you are amending your report.

Mail the amended report(s) to:


Or fax to 503-947-1700.

Use only blue or black ink. If you have a payment due, please include Form OTC with your payment if you’re paying by check.

Don’t send your corrected report electronically. Use only blue or black ink. Don’t highlight.

Time limits for changes

DOR: If you need to make a change to a report you filed (or file a claim for refund), you have three years from the date the return was filed or the due date of the return, whichever is later, to make the change or file a claim.

OED: Employers may make changes to the UI tax portion of the report for the current quarter and the previous three years.

DCBS will only make and accept adjustments to WBF reports or payments for quarters during the current calendar year and the three years before the current year.

Failure to file

If you don’t file a correct, complete quarterly report, you may receive an assessment from each agency based on available information. Each agency may charge penalties and interest on the amount assessed (see page 11).

Payment Instructions

To make sure your payment is correctly applied:

• Complete and send in Form OTC with every pay-ment when due, including payments made with your OQ.

• Show the amount paid to each tax program in the appropriate boxes on Form OTC. Enter only the amount shown on your check. Don’t include credits (see page 12).

• Enter the quarter for which you are making payment.

• If amending or paying more than one quarter, use a separate coupon for each quarter.

• Use current-year personalized coupons. Changes to the coupons or using the wrong coupon could result in misapplied payments.

• Payments for UI tax, WBF assessment, and transit taxes are due when reports are due.

• Payments for withholding tax are based on federal depositing liability (see page 10).

• Make checks payable to Oregon Department of Revenue.

• Please don’t staple or tape check to Form OTC.

SAMPLEOregon Department of RevenuePO Box 14800Salem OR 97309-0920

Make check payable to:TOTAL PAYMENT (add all the boxes at left)

Workers’ Bene�t Fund Assessment

Lane Transit District Excise

TriMet District Excise

State Withholding

State Unemployment

Enter quarter payroll was paidto employees: (1, 2, 3, or 4)

OREGON COMBINED PAYROLL TAXPayment Coupon 150-211-053 (Rev. 9-06)

Form

OTC YEAR BUSINESS ID NO.

Date Received

} 12345678900000000091920400111

Send Form OTC and your check to:


Payment record

Keep all payment records (see page 6).

Electronic funds transfer (EFT)

EFT is a convenient, safe, and accurate way to make your combined payroll tax payments. EFT allows you to make payments using a secure internet site, a touch-tone telephone, or through your financial institution.

If you are required to pay your federal tax liability electronically, you must also pay your Oregon Com-bined Payroll taxes electronically.

We encourage you to take part in the EFT program even if you aren’t required to because of its accuracy and convenience.

You must file an authorization agreement with DOR before starting EFT payments. Authorization agree-ments are available at www.oregon.gov/DOR, or by calling 503-947-2017.

Alternate withholding method

Multi-state employers who only have a small payroll in Oregon are required to deposit fol-lowing the same schedule as federal. Multi-state employers who find that following the federal tax deposit schedule will cause a burden may request a different method of withholding tax payments. To do this, send a letter that includes the following information:

• Business name;

• BIN;

• Nature of the burden;

• Your proposed withholding method;

• Proposed effective date of modified withholding method.

Guidelines for Oregon Withholding Payment Due Dates

If your total federal Oregon withholding tax liability is: tax payments are due:

• Less than $2,500 By the quarterly report due date for the quarterExample: If your federal tax liability is $2,300 and your state income tax liability is $1,500, you deposit quarterly.

• $50,000 or less in By the 15th of the month following payroll


Example: If your federal tax liability is $5,000 and your state income tax liability is $2,500, you deposit monthly.

• More than $50,000 in Semi-weekly deposit schedule


If the day falls on a: Then pay taxes by: Wednesday, Thursday,

The next Wednesday

or Friday

Saturday, Sunday,

Monday, or Tuesday The next Friday

Example: If your federal tax liability is $60,000 and your state income tax liability is $25,000, you deposit semi-weekly.

• $100,000 in a Within one banking day single pay period

Example: If your federal tax liability is $120,000 and your state income tax liability is $75,000, you deposit the next business day.

* The lookback period is the

12-month period that ended

the previous June 30. The

lookback period for agricul-

tural employers is the calen-

dar year before the calendar

year that just ended.

Payrolls paid in:Quarter 1January

FebruaryMarch

Quarter 2AprilMayJune

Quarter 3July

AugustSeptember

Quarter 4October

NovemberDecember

Oregon withholding tax due dates are the same as the dates for depositing federal tax liability.

Send this information to:

Withholding ManagerDepartment of Revenue955 Center Street NESalem OR 97301-2555

Continue using the federal requirements until DOR approves your request and designates the change date. (ORS 316.191)

Federal Form 944 filers

See small employer questions and answers at www.oregon.gov/DOR/BUS/filing.

• Paid all UI taxes due.

The penalty is 1 percent of the employer’s previous year’s taxable payroll.

Note: These penalties are in addition to interest due.


• DOR will charge a 5-percent late-payment pen-alty on any unpaid tax after the due date of the return.

• DOR will charge an additional 20-percent penalty on any tax due as of the due date if you file Form OQ more than one month late.

• DOR will charge a 100-percent penalty on any tax due if you don’t file OQ forms for 12 quarters in a row.


DCBS may charge a late-filing penalty if you make your payment or file your Form OQ after the due date. DCBS may charge a civil penalty of up to $2,000 for each violation if the payment or Form OQ is not filed on time. Penalties are charged at 10 per-cent of the outstanding balance, with a minimum of $50 for each violation.

Also, if your account is audited for failure to report or for inaccurate reporting, DCBS may charge up to $2,000 for failure to respond on time to notices and orders related to audit findings (see page 22).

PenaltiesUnemployment insurance (UI) tax

A failure-to-file or late-filing penalty may be assessed if you file Form OQ or Form 132 more than 10 calendar days after the due date, and you received a warning. Forms may be returned to you if you haven’t correctly formatted them or if they are incomplete. You must resubmit these reports by the 10th day after the due date to avoid this penalty.

The UI tax failure-to-file penalty is $6 for each employee reported, with a $80 minimum and $1,600 maximum penalty. If no subject wages are reportable, but you file the report late, you may be assessed a $5 penalty.

OED may assess a penalty if you fail to pay a tax assessment. The penalty will be 10 percent of the unpaid tax for that assessment.

OED may assess a 50-percent penalty of the unpaid tax balance if the agency finds out that an employer is intentionally avoiding paying UI tax. (ORS 657.515(5))

OED may charge an employer an additional 1-per-cent penalty if, as of September 1, the employer hasn’t:

• Filed all UI tax reports:

—Form OQ, Oregon Quarterly Tax Report,

—or—

—Form 132, Employee Detail Report,

—or—

InterestUnemployment insurance (UI) tax

General employers. OED assesses interest on unpaid or late UI tax. The rate is 1.5 percent per month or fraction of a month after the payment is due.

Payments are due by the last day of the month after the quarter. Interest is assessed if the pay-ment is one day late. Calculate interest on unpaid tax only. Don’t calculate interest on previously assessed interest or penalties.

Local Government Employers Benefit Trust Fund participants. Use the above calculation.

Reimbursing employers. Don’t calculate interest. OED will bill these accounts for interest due on unpaid balances.


DOR charges interest on any remaining tax left unpaid after the due date. DOR will bill for this inter-est, so you don’t need to calculate interest due.


DCBS charges interest on unpaid WBF assessments. The rate of 9 percent per year may be charged on all overdue balances. If your account is assigned for collection, you will be responsible for paying the collection fee.

CreditsTo apply a credit to a quarter in the same tax program:

You may use Form OQ to apply a credit amount that you overpaid in a previous quarter if you haven’t already requested or been issued a refund. Add the credit to any prepaid amount in the cor-rect box on Form OQ (box 6A, 6B, 6C, 6D or 12) to reduce the balance owing to the appropriate pro-gram by the amount of the credit being used.

To apply a credit to another tax program:

Send a written request to the agency with the credit. Include your account name, BIN, tax program, and

quarter, year, and amount of the credit. Write the tax program, quarter and year to which you want the credit applied. Attach any notices or memos you received about the credit. Don’t use Form OQ to transfer credits between programs.

To request a refund:

Send a written request to the agency with the credit. Include your account name, BIN, the word “Refund,” and the amount to refund. Attach any notices or memos you received about the credit. Don’t use Form OQ to request a refund.

Quarterly Tax Report (Form OQ)Instructions

Employer information section

Before you complete Form OQ, review the busi-ness name, mailing address, Oregon business identification number (BIN), and federal employer identification number (FEIN) to make sure they are correct. Make corrections on the Change in Status Report included at the end of this booklet.

The North American Industry Classification System (NAICS) code is assigned by OED. Coding is based on the information you gave the department. The code reflects the main activity for your company in Oregon. If you have questions about these codes, call 1-800-262-3912, ext. 7-1248 (toll-free from an Oregon prefix), or 503-947-1248.

Number of covered workers for state unemployment insurance (UI)

Complete this section if you are subject to UI law. If you have questions about how to count workers, call 1-800-262-3912, ext. 7-1248 (toll-free from an Oregon prefix), or 503-947-1248.

Monthly number of covered workers. Include all full-time and part-time workers who worked or received pay subject to UI law during the payroll period that includes the 12th of the month. Some examples are:

• Daily pay period. Enter the number of workers on the daily payroll for the workday nearest the 12th of the month.

• Weekly, biweekly, or semi-monthly pay period. Enter the number of workers on the payroll for the period that includes the 12th of the month.

• Monthly pay period. Enter the number of work-ers on your monthly payroll.

• If there were no covered workers during any pay period, enter “0” in the appropriate boxes. Don’t leave these boxes blank.

Add the numbers for the three months and place the sum in the Total (M1 + M2 + M3) box.

OQ columns

In each column:

• Enter the total subject wages paid for each tax pro-gram during the quarter. If you have questions, see the program information in this booklet; and

• Enter the total tax owed to each state program. If any of the amounts are less than zero, enter “0.” If you have credits, see the Credits section above.

Column A. Unemployment Insurance (UI)

Box 1. Subject wages. This amount must be the same as line 1 (total subject wages) on Form 132. Include excess wages (see box 2).

Box 2. Excess wages. Excess wages are wages above the taxable wage base for the year, per employee. The taxable wage base for 2009 is $31,100 per employee per year.

Reimbursing employers and Local Government Employers Benefit Trust Fund participants, leave this box blank.

Box 3. Taxable wages. Enter box 1A minus box 2A.

Reimbursing employers, leave this box blank.

Box 4. Tax rate. Use your current year’s UI tax rate. If you are subject to UI tax and no rate is printed, call OED, 503-947-1488.

Reimbursing employers, leave this box blank.

Box 5. Total tax. Multiply box 3A by box 4A. Round down to the nearest cent and enter the tax amount. Enter “0” if you had no UI tax this quarter.

Box 6. Tax prepaid this quarter. Enter the amount of UI tax prepaid or credits used this quarter. Include any credit amount that may have been overpaid in previous quarters where no refund was requested or issued (see page 12).

UI tax payments are due once per quarter on the same day as the tax reports.

Box 7. UI penalty and interest owed. Enter the amount of penalty and interest owed if the report is submitted more than 10 days after the due date. To calculate the penalty, multiply the number of employees by $6. The minimum penalty is $80. The maximum penalty is $1,600. If there were no employ-ees, the penalty is $5.

To calculate interest owed, multiply the unpaid tax owed by 0.015 for each month or fraction of a month after the date the payment is due. Interest is assessed even if the payment is one day late.

When calculating interest, use only the amount of unpaid tax. Don’t calculate interest on previously assessed interest or penalties.

Box 8. Total due. Enter box 5A minus box 6A plus box 7A. If the amount is less than zero, enter “0.”

Column B. State withholding

Box 1. Subject wages. Enter total wages subject to income tax (salaries, commissions, and bonuses), paid to Oregon employees this quarter.

• If you are reporting withholding on pension or annuity distributions, enter the amount of distri-butions with Oregon withholding.

• This amount need not match box 1A.

• Enter “0” if you had no subject payroll this quarter.

Box 5. Total tax. Enter total Oregon income tax withheld this quarter. Enter “0” on the wage and tax line of the appropriate column if you had subject payroll but no withholding tax to pay this quarter. Only numerical information entered in the state withholding tax column will be considered a filed return for that program.

If you deposit:

• Quarterly—complete only box 5B.

• Monthly—complete boxes on line 15 (M1, M2, and M3) on Form OQ. Add the amounts and enter the total into box 5B. Note: Box 5B and line 15 must be the same amounts.

• Semi-weekly or one-banking-day depositors—complete and file Oregon Schedule B. Enter the total in box 5B. Note: Box 5B and Schedule B must be the same amounts.

Box 6. Tax prepaid this quarter. Enter the amount of withholding tax prepaid this quarter. Include any withholding credits used (see page 12).

Box 8. Total due. Enter box 5B minus box 6B. If the amount is less than zero, enter “0.”

Column C. Tri-County Metropolitan Transportation District (TriMet)

Box 1. Subject wages. Enter wages paid for work done in the TriMet district. Enter “0” if there was no subject payroll in the district this quarter.

Box 4. Tax rate. The 2009 TriMet tax rate is 0.006718.

Box 5. Total tax. Multiply box 1C by box 4C. Round off to the nearest cent and enter the tax amount. If you are subject to TriMet Transit District tax but had no tax this quarter, enter “0” on the wage and tax line of the appropriate column.

Only numerical information entered in the TriMet Transit District tax column will be considered a filed return for that program.

Box 6. Tax prepaid this quarter. Enter the amount of TriMet tax prepaid this quarter. Include any TriMet credits used (see page 12).

Box 8. Total due. Enter box 5C minus box 6C. If the amount is less than zero, enter “0.”

Column D. Lane Transit District (LTD)

Box 1. Subject wages. Enter wages paid for work done in the Lane Transit District. Enter “0” if there was no subject payroll in the district this quarter.

Box 4. Tax rate. The 2009 LTD tax rate is 0.0065.

Box 5. Total tax. Multiply box 1D by box 4D. Round off to the nearest cent and enter the tax amount. If you are subject to LTD but had no tax this quarter, enter “0” on the wage and tax line of the appropri-ate column.

Only numerical information entered in the Lane Transit District tax column will be considered a filed return for that program.

Box 6. Tax prepaid this quarter. Enter the amount of LTD tax prepaid this quarter. Include any LTD credits used (see page 12).

Box 8. Total due. Enter box 5D minus box 6D. If the amount is less than zero, enter “0.”


Box 9. Like wages, report hours in the quarter that they are paid. Total all full and partial hours worked by all paid individuals (workers, owners, officers) subject to Oregon’s Workers’ Compensa-tion law or covered by workers’ compensation insurance through personal election.

Enter the total hours rounded down to the nearest whole (no fractions or decimals). If you have no hours to report for the quarter, enter “0.”

Note: The hours you report for the WBF assessment won’t necessarily equal the hours you report for UI tax purposes on Form 132. In part, this is because there may be differences in who is subject to which tax. Also, hours for the WBF assessment should be reported, like wages, in the quarter that they are paid. The hours for UI tax purposes should be reported in the quarter they are worked.

More information is available at www.oregon.gov/DCBS/FABS/wbf.shtml, or by calling 503-378-2372.

Box 10. Assessment rate. The current WBF assess-ment rate is 0.028. Employers contribute one-half of the hourly assessment amount and deduct one-half from workers’ wages.

Box 11. Multiply box 9 times box 10. Round down to the nearest cent. This is the total WBF assessment due for the quarter. If no assessment is due for the quarter, enter “0.”

Box 12. Enter the amount of prepaid WBF assess-ment or WBF assessment credits used this quarter (see page 12).

Box 13. Subtract box 12 from box 11. This is the net WBF assessment amount due for the quar-ter. It should match the amount you enter in the “Workers’ Benefit Fund Assessment” box on Form OTC. If the amount is zero or less, enter “0.”

Box 14. Total payment due

• Enter total payment due.

• Add boxes 8A, 8B, 8C, 8D, and 13.

• If you have credits, see page 12.

Make your payment to DOR using EFT, or make your check payable to Oregon Department of Revenue. If you pay by check, include a payment coupon (Form OTC) with your check.

Box 15. Monthly summary of state withholding tax liability

This line is for employers who must deposit with-holding taxes monthly. Show the amount of income tax withheld each month of the quarter. Add those amounts to get the total amount withheld that quarter. The total must equal the total withholding tax reported in box 5B.

Don’t include payments you made for UI tax, WBF assessment, or transit taxes.

If you deposit only once a quarter, enter the total amount withheld in box 5B.

If you are required to deposit withholding on a daily or semi-weekly basis, don’t complete this line (see page 10). Report withholding on Oregon Schedule B (see page 15).

Box 16. Special payroll tax

Multiply box 3A by 0.0012 for the first quarter of 2009 and by 0.0009 for the remaining three quarters. Don’t add or subtract this amount from boxes 5A or 14.

Reimbursing and Local Government Employers Benefit Trust Fund (LGEBTF) employers don’t complete this section. Employers not required to pay FUTA don’t need to complete this section (see page 16).

Signature

The tax preparer needs to sign Form OQ on the sig-nature line and include a telephone number and the date they fill out the form. A signature is required even if you file a “0” report.

Employee Detail Report (Form 132)

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

1

3

4

5

6

7

2

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

A. Total Withholding Tax Liability for the First Month of the Quarter . . . . . . . . A

2500 00

450 00

1450 00

1600 00

300 00

6300 00

Complete only if you pay UI tax or reimburse OED for benefits paid.

Line 1. Total subject wages. Enter the total subject wages for all employees for the quarter. If you use more than one page of Form 132, enter the total from all pages on page 1 only. This figure must equal the amount in box 1A, Form OQ.

Column 2. Social Security number. Enter the Social Security number for each employee reported.

Column 3. Employee name. Enter the first initial and last name of each employee reported.

Column 4. Hours worked during this quarter. Enter the number of hours each employee worked in the quarter. If you don’t track hours for a full-time employee, use 520 hours for the report. For fractions or portions of an hour worked by an employee, round up any portion of an hour to the nearest whole hour.

Report the actual number of hours worked, both straight time and overtime. Don’t report hours paid for sick leave, vacation leave, or any other hours paid where no work was performed. Even though these hours aren’t reported in column 4,

wages paid are still included in the subject wages in column 5.

Although you report wages in the quarter they are paid, report hours in the quarter they are worked.

Note: The hours you report for UI tax purposes on Form 132 won’t necessarily equal the hours you report for the WBF assessment on Form OQ, box 9. In part, this is because there may be differences in who is subject to which tax. Also, hours for the WBF assessment should be reported, like wages, in the quarter they are paid. The hours for UI tax purposes should be reported in the quarter they are worked.

Enter “0” for an employee who didn’t work during the quarter but received wages. Don’t leave blank.

Column 5. Total subject wages paid this quar-ter. Wages are reported in the quarter paid to the employee regardless of when earned. Enter the total subject wages paid to each employee during the quarter regardless of whether the employee’s wages were more than the taxable wage base.

Box 6. Page total. Enter the total subject wages for all employees reported on the page. Don’t include the totals from other pages of this form.

Schedule BExample: How to complete Oregon Schedule B

Line instructions—Oregon Schedule B

Complete Oregon Schedule B if you are required to deposit on a semi-weekly or one-banking-day basis. This form includes a box for every day of the quarter. Find the boxes that match your payroll dates. Enter the amount of Oregon tax withheld

from your employees during each payroll period. Enter the total tax withheld for each month in boxes A, B, and C. Enter the total of all the amounts in box D. The total should equal the total withholding tax reported in box 5B on Form OQ. Don’t enter credits (see page 12).

Unemployment Insurance Tax InformationSubject wages

Generally, wages reportable for Federal Unemploy-ment Tax Act (FUTA) purposes are reportable for UI tax. All wages, including draws, are reportable when paid to the employee. For example, wages paid April 1 for work performed in March are reportable in the second quarter (April–June).

An employee is any person (including aliens and minors) employed for pay by any employer subject to OED law (ORS 657.015). This includes contract, casual, or temporary labor.

“Wages” means all compensation for service, unless specifically excluded by law. Payments other than cash are reportable at cash value in the quarter in which they are available to the employee.

Examples of subject wages include:

• Payments for services to officers and employees of any type of corporation, except those officers electing to be excluded under the family corpora-tion provision (see excluded wages, this page).

• Payments for agricultural and domestic (in-home services) labor by qualified employers.

• Payments for services to employees of nonprofit organizations or political subdivisions.

• Payments for services to clergy and employees of churches or other religious organizations.

• Special payments for services, such as commis-sions, fees, bonuses, prizes, separation allow-ances, guaranteed wage payments, and vacation and holiday pay.

• Employee tips reported by the employer as directed by Internal Revenue Code Section 3306.

• Board provided to employees as part of their pay has a minimum value of 30 percent of the standard per diem meal rate within the continental United States. Round the per-diem rate to the nearest dollar. The rate per month will be 30 times the rounded daily rate.

If room is also furnished, no additional value will be placed upon it. If room and board are furnished at hotels, resorts, or lodges, or if a room only, an apartment, a house, or any other consideration is provided, the value for tax purposes will be the fair market value.

Excluded wages

Examples of payments that aren’t subject to UI tax under UI law are:

• Payments to a proprietor or the proprietor’s child under 18, spouse, or parent.

• Payments to legally responsible and registered general partner(s) of a Limited Liability Partner-ship (LLP) or to members of a Limited Liability Company (LLC).

• Noncash payments to workers in agricultural or domestic (in-home services) employment.

• Sick pay under workers’ compensation law.

• Closely held family corporations that elect, by written request, to exclude payments for services to corporate officers who:

— Are directors; — Have a substantial ownership interest in the

corporation; and — Are members of the same family, as parents,

stepparents, grandparents, spouses, sons-in-law, daughters-in-law, brothers, sisters, children, stepchildren, adopted children, or grandchildren.

An election to exclude corporate officers must be in writing and will be effective the first day of the calendar quarter in which it is submitted for approval. Download the form at www.oregon.gov/EMPLOY/TAX/TaxDocs.shtml.

Note: Those excluded from state UI tax may be subject to higher FUTA tax.

Unemployment insurance (UI) tax payments

UI tax payments are due quarterly (see page 3). When there is more owed than taxes, payments are applied first to legal fees, penalties, and interest. The remainder is applied to tax owed.

Special payroll tax

The UI tax program is authorized to collect a special payroll tax that is calculated every quarter. This isn’t an additional tax. Employers subject to FUTA must deduct the special payroll tax from the total state unemployment tax to determine the amount reported as “contributions paid to the state unem-ployment fund” on FUTA Form 940.

The special payroll tax funds the Wage Security Fund (BOLI) and the Supplemental Employment Department Administration Fund (SEDAF). The BOLI fund pays final wages when a business closes and doesn’t have enough money to make final pay-roll. The SEDAF fund provides OED services.

Don’t include the special payroll tax to calculate a credit when reporting on federal Form 940. To calculate “contributions paid to the state,” use two lines in item 3 on Form 940 (computation of tenta-tive credit)—one for the first quarter and one for the remaining quarters. The “state experience rating” for the first quarter is the UI tax rate less 0.0012 and for the remaining three quarters it would be less 0.0009.

Example 1: An employer has a tax rate of 3 percent (0.03). In the first quarter, the experience rate will be 2.88 percent (0.0288), which is the tax rate less the 0.12 percent (0.0012) special payroll tax offset.

Example 2: An employer has a tax rate of 3 percent (0.03). In the second quarter, the experience rate will be 2.91 percent (0.0291), which is the tax rate less the 0.09 percent (0.0009) special payroll tax offset.

Example 3: Employers with the highest state unemployment tax rate, 5.4 percent (0.054), should not calculate the amount of the special payroll tax offset. The employer should use the unadjusted amount of taxes paid to the state as “contributions paid to your state unemployment fund.”

“Contributions actually paid to the state” should equal the amounts on line 17, Form OQ for each quarter. If the amounts paid were less than owed, report the amount actually paid. Download Form 940 from www.irs.ustreas.gov, or get it by calling the IRS, 1-800-829-3676.

Exemption from UI tax

An employer who doesn’t have enough employ-ment or payroll may qualify for exemption from UI tax. To apply for the exemption, file a written request with the director of OED (ORS 657.415). If approved, the exemption will continue until the employer again qualifies as an employer as defined in ORS 657.

Employer account access

You can review your UI account information at www.oregon.gov/EMPLOY/TAX. Click on “Your Account Information Center,” enter the informa-tion to register your personal identification number (PIN).

Equal opportunity service provider

OED is an equal opportunity agency and doesn’t discriminate in providing services on the basis of race, color, religion, sex, nation of origin, age, dis-ability, political affiliation or belief, citizenship, or marital status.

Auxiliary aids and services are available upon request to people with disabilities.

Employment office

Information on UI tax is available at www.oregon.gov/EMPLOY/TAX; by e-mail: [email protected]; or by calling 503-947-1488. TTY number is 711. Mail written inquiries to:

Tax Section Employment Department 875 Union St NE Salem OR 97311-0030

Withholding Tax InformationSubject wages

Examples of taxable wages include:

• Salaries, commissions, bonuses, wages, fees, prizes, separation allowances, guaranteed wage payments, and vacation and holiday pay.

• Payments by a corporation, including S corpora-tions and professional corporations, to a corporate officer for services, including guaranteed wage payments for services.

• Wages paid when an employer-employee relation-ship exists between a husband and wife, domestic partners, or a parent and child.

Exempt wages

Oregon withholding law exempts wages paid for certain kinds of services, labor, employee allow-ances for the benefit of employer, and reimbursed employee business expenses. A list of exempt wages is in the Employer’s Guide For Doing Business in Oregon, available at www.filinginoregon.com.

Figuring allowances

Use the number of allowances claimed by an employee on IRS Form W-4, Employee’s Withholding Allowance Certificate. Oregon doesn’t have its own W-4 or W-4P. If an employee didn’t file a Form W-4, use “single 0” allowances. Don’t permit the allow-ances on W-4 if:

• The employee claims exempt status for state with-holding tax only, or

• DOR or the IRS tells you not to permit the allowances.

You must send a copy of Form W-4 to DOR within 20 days from receiving it if the employee claims:

• More than 10 allowances.

• Exemption from federal or state tax, and the employee’s income is expected to be more than $200 per week.

• Exemption from state withholding tax but not from federal withholding tax.

Send copies to:

W-4 Project Manager PO Box 14560 Salem OR 97309-5011

Make sure that Form W-4 has complete information on the employer (including FEIN) and employee.

Employees who owe tax when they file their per-sonal tax return may not have enough state tax withheld during the year. To prevent this in the future, they may choose to have more state tax withheld than is required under the law.

To do this, they must complete a federal form W-4 for Oregon purposes only. For information on how to use the federal form for Oregon purposes, visit www.oregon.gov/DOR.

Withholding on IRAs, annuities, and compensation plans

A payer of commercial annuities, employer-deferred compensation plans, and retirement plans must withhold tax from the distributions on behalf of the individual payee unless the individual payee chooses to have no withholding.

The payee must give federal Form W-4P to the payer to show the number of exemptions the payer should use to calculate state withholding. A payee may also use Form W-4P if they choose to have no withholding.

The payer must withhold as if the payments were wages, using the tax tables furnished by DOR. The amount of withholding per payee must be $10 or more.

Withholding on pension and annuities requires a different BIN than your payroll account BIN because these are not payroll wages.

State withholding requirements on IRAs, annui-ties, and deferred compensation plans are similar to federal withholding requirements (IRSC section 3405). The difference is that state withholding isn’t required for a rollover from one qualifying plan to another. Oregon doesn’t follow the federal backup withholding rules for pension and annui-ties distributions.

The payer issues 1099s to the individual payees at the end of the year, and files Form WR with DOR.

For more information, call 503-945-8091.

Figuring withholding tax

For 2009, use the withholding tax tables dated Janu-ary 1, 2007. To figure the amount of tax to withhold from an employee’s wages:

Oregon Department of Revenue Field OfficesForms and assistance are available at these offices.

Please don’t send your reports or payments to these addresses.

Office Address

Bend ..................951 SW Simpson Ave, Suite 100 Eugene ..............1600 Valley River Dr, Suite 310 Gresham ...........1550 NW Eastman Parkway, Suite 220 Lake Oswego ...6405 SW Rosewood St, Suite A Medford ............3613 Aviation Way, Suite 102 Newport ...........119 4th St NE, Suite 4

Office Address

North Bend ... 3030 Broadway Pendleton ...... 700 SE Emigrant Ave, Suite 310 Portland ........ 800 NE Oregon St, Suite 505 Salem Field ... 4275 Commercial St SE Building 2, Suite 180 Salem Main ... 955 Center St, Room 135

• Use the Oregon withholding tax tables at www.oregon.gov/DOR. If you don’t have internet access, call 503-945-8091 or 503-378-4988.

• For computer payroll systems, use the percentage formula in the Oregon withholding tax tables at www.oregon.gov/DOR.

All Oregon employers must withhold tax from employee wages (including draws) at the time employees are paid. Taxes are withheld and reported in the quarter the employee is paid.

Payroll questions answered by e-mail

Payroll questions? E-mail DOR, [email protected].

Other contacts

Information also is available at www.oregon.gov/DOR, or by calling 1-800-356-4222 (toll-free from an Oregon prefix), or 503-378-4988 in Salem.

TTY is 1-800-886-7204 (toll-free from an Oregon prefix) or 503-945-8617 in Salem.

Mail written inquiries to:

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

Transit District Excise Tax InformationThese tax programs are administered by DOR for the Tri-County Metropolitan Transportation District (TriMet) and the Lane Transit District (LTD). They provide revenue for mass transit (ORS Chapter 267). Transit payroll (excise) tax is imposed on most employers who pay wages for services performed in the TriMet or LTD districts. If you use a payroll service, you may need to inform them of this tax.

TriMet District service area

TriMet serves the Portland metropolitan area, which includes parts of Multnomah, Washington, and Clackamas counties. For information on TriMet boundaries, call TriMet, 503-962-6466 or DOR, 503-945-8091.

ZIP codes completely in TriMet District

97005 97206 9722297006 97208 9722397008 97209 9722597024 97210 9722797027 97211 9722997030 97212 9723097034 97213 9723297035 97214 9723397036 97215 9723997068 97216 9725897201 97217 9726697202 97218 9726797203 97219 9726897204 9722097205 97221

ZIP codes partially in TriMet District

97007 97055 9711697009 97060 9712397013 97062 9712497015 97070 9714097019 97080 9722497022 97086 9723197023 97089 9723697045 97113

Lane Transit District (LTD) service area

LTD serves the entire Eugene-Springfield urban area and several rural areas. Some ZIP codes may not line up with district boundaries. For informa-tion on LTD boundaries, call LTD, 541-682-6100 or DOR, 503-945-8091.

City ZIP code

Blue River 97413Coburg 97401Cottage Grove 97424Creswell 97426Dexter 97431Elmira 97437Eugene 97401Eugene 97402Eugene 97403Eugene 97404Eugene 97405Eugene 97406Eugene 97407Eugene 97408Eugene 97440Fall Creek 97438Finn Rock 97488Goshen 97401Jasper 97438Junction City 97448Lancaster 97448Leaburg 97489Lowell 97452Maywood 97413McKenzie Bridge 97413Pleasant Hill 97455Springfield 97477Springfield 97478Thurston 97482Trent 97431Veneta 97487Vida 97488Walterville 97488

Who must file a report?

Unless exempt (see Exempt Payroll, page 21) employers who have resident and/or nonresident employees working in the TriMet or LTD districts must register and file with DOR. If an employer doesn’t have employees working within the transit district boundaries, the payroll isn’t subject to the transit tax.

Wages subject to transit districts

Wages means all salaries, commissions, bonuses, fees, or other items of value paid to a person for services performed within a transit district (ORS 267.380).

Transit district wages also include:

• Contributions to a Simplified Employee Pension (SEP) made at the election of the employee.

• Payments for the purchase of IRC section 403(b) annuities under salary-reduction agreements.

• Contributions to 401(k) retirement plans chosen by the employee, including employer-matched contributions.

• Pick-up payments to governmental retirement plans under salary-reduction agreements.

• Amount deferred under governmental deferred compensation plans.

• Any amount deferred under a nonqualified deferred compensation plan.

• Payment to an IRC section 408 Individual Retirement Account under salary-reduction agreement.

Exempt payroll

The following are exempt from TriMet and LTD excise taxes:

• Federal government units.

• Federal credit unions.

• Public school districts.

• Organizations, except hospitals, that qualify for exemption under ORS 267.380(1)(b).

• All foreign insurers.

• Insurance adjusters, agents, and agencies and their office support staff, are exempt from transit tax if the business income is from insurance-

related activity. Noninsurance income is taxable. ORS 731.840

• Domestic service in a private home.

• Cafeteria plans.

• Casual labor.

• Services performed outside the district.

• Seamen who are exempt from garnishment.

• Employee trusts that are exempt from taxation.

• Tips paid by customers to employees.

• Wages paid to employees whose labor is solely connected to planting, cultivating, or harvesting seasonal agricultural crops.

These apply only to the TriMet District:

• Public education districts.

• Public special service and utility districts.

• Port authorities.

• Fire districts.

• City, county, and other local government units.

How to figure the transit tax

The transit tax is an employer-paid tax. It’s based on the amount of gross payroll paid for services their employees perform within the TriMet or LTD district.

Use the current TriMet or LTD tax rates. If you are subject to TriMet or LTD transit tax and no tax rate is printed on the Form OQ, visit www.oregon.gov/DOR or call 503-945-8091.

Workers’ Benefit Fund Assessment InformationWorkers’

Workers’ Benefit Fund

The Workers’ Benefit Fund supports programs that benefit injured workers and the employers who help them return to the work force. More informa-tion about programs supported by the fund is at www.oregon.gov/DCBS/FABS/wbf.shtml.

Note: The WBF assessment is separate from work-ers’ compensation insurance premium and doesn’t provide insurance coverage.

Workers subject to WBF assessment

Individuals subject to the WBF assessment are:

• All paid workers for whom the employer is required to provide workers’ compensation insur-ance coverage, and

• All paid individuals (workers, owners, officers) who may otherwise be nonsubject, but whom the employer chooses to cover under workers’ compensation insurance.

Employers who don’t file Form OQ during the time they have subject workers or personal elections may be assessed a penalty.

WBF assessment reporting exemptions

Businesses may qualify for exemption from report-ing the WBF assessment if you don’t have any paid individuals (including yourself) covered by your workers’ compensation insurance policy. To request an exemption from WBF assessment report-ing, complete and mail to DCBS a Corrections and Changes Notification form. The form is available at www.oregon.gov/DCBS/FABS/wbf.shtml, or by calling 503-378-2372.

Hourly assessment

This assessment is based on the total number of full and partial hours worked by all paid individuals who are subject to the assessment. Like wages, the hours are reportable in the quarter they are paid.

For example, report hours worked in March, but not paid until April 1, in the second quarter (April – June). The hourly assessment rate is printed on Form OQ in box 10. It may change annually.

Penalties for failure to respond on time to audit findings

DCBS audits the WBF assessment accounts of employers who fail to report or who report inac-curately. The cost of following up on employers who report inaccurately and fail to respond to audit findings increases the cost of the workers’ compen-sation system for everyone.

To more effectively ensure fair distribution of costs, DCBS is authorized under ORS 656.745 and Oregon Administrative Rule (OAR) 436-070-0050 to issue civil penalties of up to $2,000 for failure to respond on time to notices and orders related to audit find-ings. If you use a payroll service provider, it is still your responsibility to respond to all audit findings on time.

How to update or close your Workers’ Benefit Fund assessment account

If your business changes ownership, discontinues business, or no longer employs workers, contact your workers’ compensation insurer with the cor-rected information. Your WBF assessment account will stay open as long as your workers’ compensa-tion insurance coverage is active and on file with Oregon.

When you cancel your insurance coverage, you can expedite closing your WBF assessment account by completing the Corrections and Changes Notification form. This form is available at www.oregon.gov/DCBS/FABS/wbf.shtml, or by calling 503-378-2372.

WBF assessment questions

If you have questions about your WBF assessment account, contact DCBS by e-mail, [email protected], by calling 503-378-2372, or writing:

Workers’ Compensation Assessments Section DCBS/Fiscal and Business Services PO Box 14480 Salem OR 97309-0405

Do Not Staple; Use TapeOrder Form

Fold Here Last

ReQUeST FOR MORe FORMS, FILINg SOFTWARe, SpeCIFICATIONSUse this form to order more forms, software, or specifications. Check the appropriate boxes or enter the number of copies you need. Forms vary from year to year. You may order them at www.oregon.gov/EMPLOY/TAX; by telephone, 503-947-1488 option 3; or fax, 503-947-1487. Specifications for previous years aren’t available.

Order Items:

_____ OTTeR program for filing through internet, by e-mail, or on CD/diskette

Or, for immediate service, download OTTeR from www.oregon.gov/EMPLOY/TAX/OTTERhome.shtml.

Telephone Number: ( )

_____ plain paper Specifications (plain 20# bond paper also may be used for making reports)

Fold Here First

personalized preprinted Forms (specify amount)

_____ Current Year Report packet Check quarters for which forms are needed.

(1st)

(2nd)

(3rd)

(4th)

_____ Extra Current Year Forms 132 (how many)

Blank Oregon Combined payroll Tax Forms(specify year and amount)*

Year Form OQ Schedule B Form 132

______ ______ ______ ______ ______ ______ ______ ______ * Large forms orders may require a payment. The cost is 4 cents per page. If you order more than 100 copies of any kind, we will call you before sending the forms. Be sure to write your telephone number above so we can contact you.

To order Form OTC (Oregon Tax Coupon), call 503-945-8091.

employment Department—Tax875 Union Street NeSalem OR 97311-0030

ATTN: FORMS

FORM

WR 2009Business Name Business Identification Number (BIN)

150-206-012 (Rev. 12-08) Please read the instructions on the back

OREGON ANNUAL WITHHOLDING TAX

RECONCILIATION REPORTReturn Due Date: February 28, 2010

Department Use OnlyDate Received

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.

Use your 2009 OQ forms. See the instructions on the back. Tax Reported

Explanation of difference ____________________________________________________________________________________

___________________________________________________________________________________________________________

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

account.

Mail Form WR to: Oregon Department of Revenue PO Box 14260 Salem OR 97309-5060

Signature

X

Date

Print name Title Telephone Number

( )

I certify that this report is true and correct and is �led under penalty of false swearing.

Federal Employer Identification Number (FEIN) Number of W-2s

All Oregon employers who pay state withholding tax must file Form WR, Oregon Annual Withholding Tax Reconciliation Report. The 2009 form is due February 28, 2010. If you stop doing business during 2009 or no longer have employees, Form WR is due 45 days after your final payroll.

To amend data on Form WR, make a copy of the origi-nal Form WR and make the necessary changes on the copy. Write “Amended” at the top of the form. Attach any necessary amended OQ forms to the amended Form WR. Send your amended forms to the address below.

Oregon employers who fail to file Form WR may be charged a $100 penalty.

How to fill out Form WR

Write your business name and Oregon business iden-tification number (BIN) in the spaces shown. If you received a personalized booklet, your name and BIN will be filled in. Follow the instructions below for each line number.

Line 1 through Line 4. Fill in the total Oregon tax re-ported for each quarter (use the amount from box 5B of your 2009 OQ forms).

Line 5. Total. Total amount from all quarters reported.

INSTRUCTIONS FOR FORM WR

150-206-012 (Rev. 12-08)

Line 6. Enter the total Oregon tax withheld from your employees’ W-2s or 1099R forms.

Line 7. Enter the difference between line 5 (total tax paid) and line 6 (total tax shown from W-2s or 1099Rs).

If line 6 is larger than line 5, you owe additional tax (shown on line 7). If line 6 is smaller than line 5, you have overpaid your tax and have a credit. If the amount on line 7 is zero, your state withholding account balances.

Please give an explanation of the difference on the lines provided.

If you have overpaid, the credit may be applied to a future quarter. The credit may not be used for another tax program. If you want the credit refunded, send a written request, or you may use the explanation lines on Form WR to request your refund.

If you owe tax, please include a payment. Don’t staple or tape your payment to Form WR. Remove and retain any check stubs.

Sign and date your completed Form WR. Print your name and telephone number. Mail Form WR to:


— IMPORTANT —Mail your Form WR separately from your 2009 4th quarter Form OQ.

Make a copy for your records.

Business Name ______________________________________________________

Physical or ______________________________________________________ Mailing Address ______________________________________________________

Telephone Number ______________________________________________________

FEIN ______________________________________________________

A. Sold, leased, or otherwise transferred: All or Part of the business, to:

Business Name: __________________________________________________________________________ Date of Sale: _____________________________

New Owner’s Name: ______________________________________________________________________ Telephone : ______________________________

Address: _________________________________________________________________________________________________________________________

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. ________________________

CHANGE IN STATUS REPORT

Has your business name, mailing address, telephone number, or federal employer identification number (FEIN) changed? Check this box and fill in the change(s) below.

Has the address where your forms are delivered changed? Check this box and fill in the change(s) below.

( )Oregon Business

Identification Number (BIN)

NATURE OF CHANGE: (Please check as appropriate) If an entity change, see instructions.

150-211-157 (Rev. 12-08)

Fax to: 503-947-1700 -or-

Mail to:

X

(mm/dd/yy)

Federal Employer Identification Number (FEIN)

( )

( )

Change in Status Report InstructionsAs an employer you must notify the Employment Department, the Department of Revenue, and your workers’ compensation insurer of any change in your business.

Examples of changes to report on the Change in Status Report are:

change, only if printed incorrectly on your forms.Dissolution of sole proprietor, partnership, corpo-ration, or a limited liability company.

NOTE: Combined Employers Registration.

— If you are an employer who is paying wages earned in the TriMet and/or Lane Transit District you must register and file with the Oregon Depart-ment of Revenue. Wages include all salaries, com-missions, bonuses, fees, payments to a deferred compensation plan, or other items of value.

— If you are an employer who has recently started working in the TriMet and/or Lane Transit District,

— If you are an employer who has recently moved from the TriMet and/or Lane Transit District, you are no longer subject to this tax (see the Oregon

— The TriMet District includes parts of three counties -

questions call 503-962-6466.

Springfield metro area. For LTD boundary ques-tions call 541-682-6100.

Entity changes in your business that require comple-tion of a new Combined Employers Registration form include, but are not limited to:

or corporation.

or corporation.

or partnership.

fewer partners.

partnership to a limited liability company.

150-211-157 (Rev. 12-08) Form 013

Complete the Change In Status Report and

Fax to: 503-947-1700 – or –

Mail to:

To order copies of this form, contact the Employment Department or download it from www.oregon.gov/DOR.

1

Office of the State Treasurer Plain Language Plan

In accordance with the provisions of House Bill 2702 (2007), the Office of the State Treasurer has adopted this Plain Language Plan to improve the understanding and effectiveness of written communication, including documents and brochures, letter and email correspondence, reports, and website. Simplifying language and using logical, orderly sequences will help users better understand the information they read and quickly locate what they need on the website. This reduces the need for additional explanations and avoids miscommunication, and staff and user time is saved. Users understand what they read, avoid frustration, and enjoy more positive contact with the State Treasurer’s Office. A new administration enters office on January 5, 2009, and the specific development of projects is being deferred to the new administration.

Goal: Provide clear, simple, logical communications that are appropriate for intended audience.

Plain Language Coordinator: James Sinks, Communications Director (effective January 5, 2009) Office of the State Treasurer

159 State Capitol, 900 Court Street NE Salem, Oregon 97301 Tel: 503-378-4329 Fax: 503-373-7051 [email protected]

www.ost.state.or.us

Projects and Timeline to Accomplish Goals

Complete Plain Language Plan: Completed

Plain Language Training: Prior coordinator attended a Plain Language Training in early 2008. Incoming coordinator to attend a Plain Language Training or receive personalized training and assistance from the Office of Regulatory Streamlining. March 2009

Other Training: Attend additional affordable and practical training. Access additional information from resources provided on state Plain Language website. Ongoing

The Oregon Department of Transportation Plain Language Plan

December 2008

Goal: Train staff in plain language techniques so that ODOT documents aimed at the public are clear, readable, and meaningful. Target Audiences: ODOT employees that create and/or edit documents written for the public including designated contacts (in some cases, several people) from these divisions: Highway DMV Transportation Development Rail Public Transit Motor Carrier Central Services Safety Strategy: Create a simple process for staff to follow in preparing materials that follow plain language standards including using the following:

• active voice and present tense; • everyday words; • short, simple sentences; and • a layout with “white space” and a font size and style that improves readability.

Tactics/Projects:

Tactic Description Timelines

Create a training course on “Plain Language at ODOT.”

Training will be approx. 2 hours focused on how-to examples and hands-on practice.

Due: Feb. 2009

Determine a general “guide” for all staff to use as a default.

We’ll recommend Strunk and White, online at http://www.bartleby.com/141/ (also inexpensive to purchase).

Due: Feb. 2009

To supplement Strunk and White, we’ll create a simple ODOT guidebook and a corresponding intranet site.

Include checklists, examples, “quick tips” etc. and who to call in each division for more information.

Due: Feb. 2009

Identify and train key contacts. Have managers identify key contacts in units, divisions, etc. that will serve as coaches for everyone else in that area. Train those contacts by taking the training out to the Regions, divisions, units, etc.

Deliver: March – Dec, 2009

Randomly review various ODOT materials.

After training is delivered, continually audit materials for plain language standards.

On going

Follow up • Conduct a survey: In 2011, Communications will conduct a survey of materials and key contacts

to document progress. Comm. Council contact: Patrick Cooney, [email protected] Plain Language contact: Shelley Snow, [email protected]

Before

Plain Language Example

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