TUB 180

Hi,
TUB 180 contained a change to Oregon withholding.  It says that the formula is modified to include the Federal Withholding Credit phase-out tables for High Wage Earners. Oregon has payroll withholding calculators that estimate additional tax that should be withheld for high wage earners. This estimated tax should be withheld in addition to the tax calculated by the regular withholding formula.
BSI has kindly advised that they would introduce this change effective 2011 once Oregon upates the tax tables. Untill then it has to be a mannual calculation by using the Payroll withholding calculators for high-income earners. We just wanted to know as to how other businesses are dealing with this additional calculation are they following manual calculation.
Thanks in advance,
Kamala.

Please review the website for Oregon state withholdings:
http://www.oregon.gov/DOR/BUS/payroll_updates.shtml
It seems like you will have to calculate the amount using the payroll calculator and on IT0210 in SAP put the amount in additional withholdings. I would have HR or Payroll area send a note out to the impacted employee's and update them of this change. So, either they can adjust there Oregon W-4 or are aware that they will be underwithheld without making this change for 2010...
2010 Payroll Withholding/Transit Updates  
Oregon Withholding Tax Tables
Continue using the Oregon Withholding Tax Tables dated January 1, 2007, if your employee's annual wage is less than $125,000.
If your employee's annual wage is $125,000 or more, then use our Payroll Withholding Calculator to estimate the additional amount to withhold.
If you have only a few employees with annual wages of $125,000 or more, your employee can modify Federal form W-4 by using the Oregon Personal Allowances Worksheet and either the online calculator above or the Payroll Withholding Worksheet.
However, the withholding formula can be adjusted with the following updates for 2010:
Personal exemption credit: $177
Standard deduction:
Single-$1,950
Married-$3,900
Federal tax subtraction: $5,850
We intend to modify the Oregon Withholding Tax Tables effective January 1, 2011. They will be available the week of November 29, 2010.

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    Last edited by sekenre (2009-04-14 16:48:38)

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