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Jul 12, 2018

TAXES 18-60, Oregon Statewide Transit Tax I National Finance Center.

nfc.usda.gov

TAXES 18-60, Oregon Statewide Transit Tax

HR and Payroll Clients


Published: July 12, 2018
Effective: Pay Period 14, 2018

A Statewide transit tax is being implemented for the State of Oregon. The transit tax will include the following:
  • The tax rate is 0.10 percent.
  • There is no maximum wage base.
  • This tax must be withheld on: (1) wages paid to residents of Oregon regardless where they work; (2) wages paid to nonresidents of Oregon while they are working in Oregon; and (3) periodic pension payments made to Oregon residents.
No action on the part of the employee or the personnel office is necessary.
State Abbreviation:
OR
State Transit Tax Withholding State Code:
OR
Acceptable Exemption Form:
N/A
Basis for Withholding:
N/A
Acceptable Exemption Data:
N/A
TSP Deferred:
Yes
Special Coding:
None
Additional Information:
N/A

Withholding Formula (Effective Pay Period 14, 2018)

  1. Subtract the nontaxable biweekly Thrift Savings Plan (TSP) contributions from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
  3. Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages by 0.10 percent to obtain the biweekly statewide transit tax.
To view the updated tax formula, go to the page from the drop-down menu on the National Finance Center (NFC) homepage. Select the tab and select from the menu to launch the tax map. Select the desired State from the map provided for the formula.
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal.