Effective July 1, 2018, all Oregon residents and nonresidents who work in Oregon will be subject to a new statewide transit tax, established by the passage of House Bill (HB) 2017. The tax is one-tenth of one percent of an individual’s wages ($1 out of $1,000) and will go toward improvements in public transportation throughout the state. While this is a tax paid by employees, employers are responsible for withholding and submitting the tax. As a BC+S client, you should not expect any changes in payroll processing. We are prepared for and aware of the changes, as is ADP. An ADP regional representative confirmed that their systems will be ready to accommodate the change in withholding.
Your employees should begin seeing the new item on their pay stubs covering any work completed on or after the July 1, 2018 date. While the tax amount is small, we recommend notifying them of the change and have provided this brief notice, which you can distribute with their pay stubs.
July 1, 2018 also marks an increase in the Oregon minimum wage, which will be rising from $10.25 to $10.75 throughout most of the state, $11.25 to $12.00 in the Portland Metro Area, and $10.00 to $10.50 in certain designated “non-urban” counties. If you have any questions about these changes, please feel free to give us a call at your local BC+S office.