New Reporting and Withholding Requirements Began January 1

December 13, 2022

New Reporting and Withholding Requirements Began January 1

NFIB members and other small-business owners are reminded the state’s new paid leave program is now in effect. According to a Oregon Employment Department (OED) news release, “Starting January 1, 2023, employers will be required to start withholding contributions to Paid Leave Oregon, the state’s new program … Employers will report subject employee wages, contributions based on those wages, and employer contributions on a revised quarterly employer tax report (Form OQ). “Payments will be made to the Oregon Department of Revenue (DOR) on or before the due date of the Form OQ (the last day of the month following the quarter to which the report relates). Revenue will then transfer the funds to OED.” Furthermore, according to the department, “Paid Leave Oregon changed the way we count employees based on partner and community feedback, as it has been a consistent area of confusion since we started Community Conversations and other engagement meetings. This change aligns Paid Leave more closely with the way employees are counted for the Unemployment Insurance program. The rules are available online under definitions and methods, and we have a guide and chart to help employers determine their employee count.”

Statewide Transit Tax added to Form OQ

Also, according to the ODE, “Starting in the first quarter 2023, employers will begin reporting Statewide Transit Tax withholding on Form OQ. However, annual Statewide Transit Tax filers will continue to file through Revenue Online or by paper using the STT-A form. Statewide Transit Tax reporting for tax periods prior to the first quarter 2023 are still reported through the current process directly to DOR in Revenue Online or using the old paper reports (e.g., STT-1, STT-2, STT-A).”