Oregon transit tax on w2 1% employee tax for the Statewide Transportation Improvement Fund, which is distributed to public transit agencies. 09. That information should be reported on your RS record in character positions 348-369 and the RV record in character positions 40-69. 40 cents Oregon State Disability Insurance (SDI) SDI benefits are funded by employees through mandatory payroll deductions from each paycheck. . The TriMet Tax is based on where the work is performed, and whether that location is within the TriMet District Boundary. If you conduct What is Oregon income tax withholding? By law, as an employer you must withhold a portion of your employees' wages based on their allowances and send the funds to the Department of Revenue (DOR). Select Taxes, then Assign Tax Fields. In the box 14 category box in TurboTax you would select the "Oregon Statewide Transit Tax" category. Your transit self-employment tax return is gener-ally due the same day as your federal and Oregon individual income tax returns. Transit payroll taxes are a tax on the employer that is paid by the employer based on the amount of payroll earned within a transit district. However, if a nonresident employer, who doesn’t conduct business in Oregon, doesn’t withhold the transit tax from wages of an Oregon resident employee, the employee is responsible for reporting and paying the tax. Here’s how Mosey can help confidently manage your compliance needs. 00). Statewide Transit Tax Reporting Nearly 177,000 Oregon employers Report tax on the Combined Quarterly Payroll Tax Report (Form OQ). Dec 19, 2023 · Employers in Oregon must withhold the statewide Oregon transit tax from employee wages. There are some organizations whose payroll is exempt from transit payroll tax (e. oregon Mar 20, 2025 · Transit payroll taxes in Oregon apply to specific service districts, including TriMet, the Lane Transit District (LTD), and the statewide transit tax. Nearly every employer who pays wages for services per-formed in these districts must pay transit payroll tax. It is called Oregon Statewide Transit Tax. Recently promulgated Oregon Department of Revenue regulations require employers to report the statewide transit tax in Box 14 of Form W-2, with the designation "ORSTT W/H" (for example, ORSTT W/H - $15. TriMet Transit Tax Wilsonville Transit Tax Oregon local taxes are calculated for both Basic payroll and Full Service payroll. For more information on the statewide Oregon transit tax, check out our article, “What Is the Oregon Transit Tax? Your Guide to the Statewide Employee Sep 2, 2025 · The transit payroll tax is a specific 0. The 2025 transportation package would raise $4. W-2 File Specifications The state of Oregon follows the Social Security Administration (SSA) guidelines for the filing of W-2 wage and tax statements, with Oregon-specific requirements for the RS and RV records (OAR 150-316-0359). 46 per gallon, doubling the payroll tax for public transit, and sharply raising vehicle registration, title, and electric vehicle fees, costs that could add hundreds of dollars a year for Oregon drivers. The definition of "wages" excludes amounts paid to certain types of employees and independent contractors (ORS 316. For purposes of the transit district payroll taxes, certain payrolls are exempted from taxation by exclusion of the amounts paid from the… How to figure the transit tax Multiply the gross taxable payroll earned within the transit district by the current transit rate. Jul 28, 2024 · Oregon employers must comply with the Oregon Transit Payroll Tax. The statewide transit individual (STI) tax helps fund public transportation services within Oregon. The tax will need to be added to the tax group to calculate automatically. Statewide Transit Tax (STT) Reporting Requirements If your business had employees who performed work in Oregon or had Oregon resident employees who performed work outside of Oregon during the year, you must report statewide transit tax information. Aug 16, 2025 · The Oregon Transit Tax is a statewide financial contribution supporting public transportation initiatives. This tax isn't related to the Lane or TriMet transit payroll taxes. ). 2. Make your payment using the payment coupon, Form OTC, or through the department’s electronic fund trans-fer (EFT). Understanding the Oregon Transit Tax The Oregon Transit Tax was established We collect self-employment taxes owed to TriMet Transpor-tation District (TriMet) and Lane Transit District (LTD). Click OK, and then click Finish. The statewide transit tax is imposed on the wages of each employee, but the employer is responsible for withholding, reporting, and remitting the statewide transit tax. This tax is distinct from local transit taxes that may apply in specific regions. Oregon income tax withholding refers to the amount of Oregon personal income taxes that are withheld from the employees' paychecks to cover the anticipated Oregon tax liability for the year. 31 – Q4 2024, Form OQ, Form OA, Form OR-STT-2 (if necessary) due, 2024 W-2 and Form OR-WR. For EFT information, call (503) 945-8100 option 4 then option 1. g. When you create the Oregon W-2 electronic file, the electronic file will include the Oregon statewide transit tax. Each reconciliation report must include a reconciliation of income tax and statewide transit tax remitted to the department by the employer for the calendar year to the total of income tax and statewide transit tax withheld from employees’ pay for the calendar year. Sep 4, 2025 · An average Oregonian making $68,000 would pay $136 each year in payroll transit tax under transportation proposal. The state department of Oregon amended OAR 150-316-0359 in the fall of 2018 to require reporting of statewide transit tax withholdings. Oregon Annual Reconciliation (Form OR-WR) Oregon Statewide Transit Tax (Forms OR-STT1, STT2, and STTA) - Beginning with quarter 1 2024 returns, the Statewide Transit Tax will be filed on the OQ. 162). For Local Income Tax line, select your Oregon STT field (OR_STT or ORTransit). TriMet and Lane Transit Self-employment Taxes The Oregon Department of Revenue administers and collects transit self-employment taxes on behalf of the TriMet Transportation District (TriMet) and Lane Transit District (LTD). Place a check next to the Oregon Transit Tax. Transit payroll taxes are imposed on the employer based on the amount of payroll. 31 – Q4 2024, Form OQ and payments due (if quarterly depositor). It needs to be on the W2. To send payment by check with the Oregon Combined Tax Payment Coupon (Form OR-OTC-V), use a single check for the total amount of all state payroll taxes due, including the WBF assessment. Industrial Property Loaded Tank Railroad Car Fee Local Budget Marijuana Oregon Revenue Bulletins (ORBs) Other Agency Accounts Pass-Through Entity Elective Tax Payroll Withholding & Transit Each reconciliation report must include a reconciliation of income tax and statewide transit tax remitted to the department by the employer for the calendar year to the total of income tax and statewide transit tax withheld from employees’ pay for the calendar year. Form OQ is filed electronically on the Oregon Employment Department’s Frances portal or via paper. Jun 4, 2019 · Oregon added this tax in July for all employees to pay. Each district has distinct boundaries, rates, and filing requirements. This tax will be strictly enforced and employers could face penalties if they do not withhold this tax in a timely manner. Oct 18, 2023 · In addition to federal tax requirements, Oregon employers have to withhold state personal income taxes, unemployment insurance, workers’ compensation, transit taxes, and paid leave. When to file the transit tax Your transit tax is reported quarterly using the Oregon Quarterly Tax Report (Form OQ). There are also local transit taxes. com Here is HB 2025 in the Joint House-Senate Transportation Reinvestment Committee that lays out 11 new taxes. The TriMet Transit Payroll Tax is imposed directly on the employer. However, if a nonresident employer, who doesn’t conduct busi-ness in Oregon, doesn’t withhold the transit tax from wages of an Oregon resident employee, the employee is responsible for reporting and paying the tax. This tax is applied to the self-employment earnings of taxpayers doing business or providing services to a location within the transit districts. Transit services are paid for by a combination of payroll taxes levied on businesses located in or performing work in Wilsonville (assessed on gross payroll and/or self-employment earnings Jul 18, 2025 · Use our easy payroll tax calculator to quickly run payroll in Oregon, or look up 2025 state tax rates. General information The statewide transit individual (STI) tax helps fund public transportation services within Oregon. Click Save > Exit. This tax isn’t related to the TriMet or LTD transit payroll taxes. Order paper forms. Dec 2, 2023 · Click Exempt From (lower left). Below is HB 2025 details as reported by the media: *** Proposed details subject to change *** • Gas tax increase +37%. Taxpayers with self-employment earnings from doing business or providing services within the transit districts are subject to transit self-employment tax. Find and download forms and publications, popular forms, Board of Property Tax Appeals (BOPTA), Cigarette and Tobacco, find current and search all forms. Jun 4, 2019 · According to the OR revision for tax years effective 2020 and beyond employers no longer report OR St Wages in box 14 since that information is already reported in Box 16 on the form W2. Add the tax to the Tax Group: From the Payroll Setup menu, select Taxes, Tax Groups. For additional information on the state-wide transit tax, visit www. For most taxpayers, this is April 15. 3 billion over ten years by increasing Oregon’s gas tax to $0. So, enter OR STT W/H in the first column for box 14, then the amount in second column and choose Oregon Statewide Transit Tax in the third column. The reporting requirement was enforced starting with Form W-2 filing for the tax year 2019 (due date of January 31, 2020). Jan 31, 2025 · When e-filing Form W-2 for Oregon, the state requires some special fields, State Taxable Wages for Statewide Transit Tax Statewide Transit Tax Withheld If the deadline falls on a weekend or federal holiday, the next business day is the deadline. Employers only report OSTTT W/H in box 14 which is the amount withheld for OR State Transit Tax. Select State as the Tax level Enter OR as the Tax group On the table use the List Apart from OR Transit District, Tri-County, and Lane Transit District, certain districts in Oregon impose local payroll taxes. Box 18, 19, and 20 "EUG" - Eugene Community Safety Payroll Tax went into effect for pay periods Jan 19, 2021 · There is a category for it in TurboTax, in the Tax Category column in the Box 14 section of the W-2 entry screen in TurboTax. (1) An employer required to withhold and remit statewide transit taxes to the department under ORS 320. It aims to enhance and expand transit services, improving mobility and connectivity across the state. How to add Oregon Transit Tax to W-2 Resolution Select Maintain, Payroll, Payroll Settings. 2025 Withholding and Transit Tax Calendar and Important Due Dates January 15 – Monthly payment due for December payroll (if monthly depositor). More Information on this change can be found on the Oregon Statewide Transit Tax website. Select W-2 Fields. These fields Jun 10, 2025 · House Bill 2025 has eleven new transportation taxes By Taxpayers Association of Oregon OregonWatchdog. 550 (Tax on wages) must submit… W-2 Information The University of Oregon is required by the Internal Revenue Service (IRS) to provide all employees with a Form W-2 (Wage and Tax Statement) to report the employee’s compensation and tax withholding amounts for the calendar year, on or before January 31 st of the following year. We collect self-employment taxes owed to TriMet Transpor-tation District (TriMet) and Lane Transit District (LTD). This change is effective for calendar year 2019 Forms W-2, due to employees and the Department by January 31, 2020. May 2, 2022 · The ORTIF (Oregon Transit Improvement Tax) tax rate record was included in Payroll tax update 18. Transit (Payroll and Self-Employment) Tax The city’s transit system, SMART, provides service throughout the community as well as connections to Tri-Met in Portland, CAT in Canby, and Cherriots in Salem. Resolution Select Maintain, Payroll, Payroll Settings. Reporting Oregon Transit Tax on W2s In order to include the Oregon Transit Tax on W2s in your state efile export file, you must enter the abbreviation ORTRTX in box 14 of the W2 The Mass-Transit (TriMet) Tax is paid to the Oregon Department of Revenue and businesses will need to file using the EIN assigned by the IRS. This tax is NOT related to the Lane or TriMet transit payroll taxes, it is in addition to all other local tax codes for Oregon. Oregon, however, doesn't require employers to collect an SDI tax. Estimated income tax payments Personal income tax return Self-Employment transit tax Statewide transit individual tax return Timber tax Businesses C corp returns or amended returns However, if a nonresident employer, who doesn’t conduct business in Oregon, doesn’t withhold the transit tax from wages of an Oregon resident employee, the employee is responsible for reporting and paying the tax. How does the payroll transit tax work? “Payroll tax” is a general term for what’s taken out of your paycheck for tax purposes or social services. The effective date for this tax is July 1, 2018. federal credit unions, 501 (c) (3) nonprofit and tax-exempt institutions, etc. Repeat for any other withholdings that are exempt from the Oregon tax. STI tax is calculated on wages earned by an employee who is an Oregon resident regardless of where the work is performed, or an employee who is a nonresident who performs services in Oregon. The current rate should be printed in the TriMet/LTD portion of the Oregon Quarterly Combined Tax Report (Form OQ). Read this information provided by Sep 4, 2025 · To put that into perspective, the Oregon Capital Chronicle has compiled a detailed breakdown of how much the payroll transit tax would cost Oregonians. Add the Oregon statewide transit wages and tax to a W-2 employee. Oregon Paid Sick Leave (PSL) Tax The state of Oregon doesn't require employers to collect PSL taxes, but it does have a program providing such leave to eligible employees: Sep 12, 2024 · Overview The state of Oregon is requiring employers to withhold a Statewide Transit Tax effective July 1,2018. Statewide Transit Tax (STT) reporting requirements If your business had employees who performed work in Oregon or had Oregon resident employees who performed work outside of Oregon during the year, you must report statewide transit tax information. Mar 31, 2017 · An Employer’s Guide to Oregon Withholding and Transit Taxes for Sports and Entertainment Industries This packet provides basic payroll tax information for all employers doing business in Oregon including those involved in the sports and entertainment professions. The tax is one-tenth of one percent (0. This dedicated funding stream for infrastructure and operations is distinct from other state or local taxes. 001), or $1 per $1,000 of wages. Transit district taxes Oregon Department of Revenue administers tax programs for the Tri-County Metropolitan Transportation District (TriMet) and the Lane County Mass Transit District (LTD). Jan 2, 2019 · An Oregon rule requiring employers to report statewide transit tax withheld on Forms W-2, effective starting with tax year 2019, was published in the Oregon Bulletin Jan. The tax is figured only on the amount of gross payroll for services performed within the TriMet Transit District. The taxes are collected and filed if you have Full Service payroll. Self-employment income isn't subject to this tax. Aug 18, 2025 · The Oregon Transit Tax is a state-level payroll tax implemented to support public transportation initiatives across Oregon. These taxes apply to all wages earned for work performed within these areas, including remote work. ftpcf jikvek kemdf xrelz lqcthio zcegx smpq sgywpr pwizq cyfmktj lwsb mojs nbzehlc pedsyrdl ejgqea