August 29, 2018
This financial news is brought to you by the Alfred Johnson blog.
The state of Oregon’s new Transit Tax went into effect on July 1, 2018. This tax applies to all employees, whether exempt or not and is based on state taxable wages. This tax will need to be reported on Form W-2.
If your employees are subject to this tax, then use the following information to modify your Shelby Financials Payroll settings for all Oregon employees as defined by the Transit Tax rules.
Establish a new liability account to track this activity. Set up 2 new Deduction Types, one named ORSTTT and one named ORSTTW. Add the deduction type ORSTTT to every active employee with the settings of % State Taxable and deduction amount of .1%. Run a test payroll to verify settings. There are additional steps needed at year-end, so see full instructions before running your 2018 W-2s.