Oregon – State Transit Payroll Tax Effective July 1, 2018

Effective July 1, 2018, Oregon’s new State Transit Tax requires employers to withhold one-tenth of one percent (0.001) from each EMPLOYEE’S gross wages. EMPLOYERS must pay the withheld tax on a quarterly basis, with the first payment due October 31, 2018 for Third Quarter 2018 (July, August and September).

We recommend that Employers deposit the withheld tax into a state transit tax trust account until the quarterly return and payment is made.

The State of Oregon has issued specific forms for employers to use (Forms OR-STT) to report the new State Transit Tax. These forms must be completed in addition to Oregon’s Quarterly Tax Report (Form OQ), and are available under the Payroll withholding & transit section of the Department of Revenue Forms webpage (https://www.oregon.gov/DOR/forms/Pages/default.aspx).

Questions? Contact us.