Oregon Statewide Transit Tax

All rates are accurate as of the date of publication. Employers are solely responsible for ensuring the use of current rates and applicable limits.

Revenue from the statewide transit tax will go to expanding public transportation throughout Oregon. For more information on how the tax revenues will be used, check out “HB 2017 Funding Package” under “Projects & News” on the Oregon Department of Transportation’s website at www.oregon.gov/odot. To learn more about the tax itself, visit the Department of Revenue online at www.oregon.gov/dor.

Employee contributions. Starting July 1, 2018, a statewide tax was added. The tax is one-tenth of one percent (.001)—or $1 per $1,000

Employer responsibilities. Employers do not contribute to the fund. Employers are required to report employees’ wages and hours and pay premiums every quarter unless the employer had no payroll expenses during that quarter. 

Each non-exempted employee will need to be set up individually.  The following are the steps to create the tax and applying it to the employee's payroll record:

1. Set up the Payroll Item.

      (Version 7.9900.391.0 or later) Click on the Gear Icon in the upper right corner.

2. Click on Company Payroll (Item F under Accounting)

2a. (versions older than 7.9900.391.0) Click on Setups, then on Accounting and Payroll, then on Company Payroll

 

3. Click on Add Payroll Item

4. Again, click on Add Payroll Item

5. Choose User Defined Tax and click Next

6.  Choose Paid by the employee and click Next

7. Choose a name you want to identify the tax item. Key in the Code and Description you have chosen.  Click Next

8. You can choose an existing GL account to use, or you can create a new account.  We'll create a new one.  Click Select.

9. Click on the Add G/L Acct.

10. Enter the GL account number you want to use.  We chose 23480.  Enter a Description and click on the down arrow in the Type box.  Choose Current Liability.  Click Save

11.  If you're satisfied with the new account you've created, or decide to use an existing account, highlight the account number and click Select. Then click Next.

12. The amount withheld from the employee is to be reports on the W2 form in Box 14.

13. Leave the choice set to Gross pay and click Next. Then Next on the "Allowances..." page.

14. Set the rate to 0.1000% and leave it set to Percentage.  There is no maximum amount to be collected, so leave the next two boxes blank.  Click Finish

15. Exit the Setup pages, and from the main page click on Payroll then on Employee List, and open the record for the first employee to be set up. Click on Payroll Items. 

16.  Click on Add Payroll Item.

17. Highlight the WA Cares payroll item you created and click on Select.      

18. Click on Save to attach the tax to this employee.

19. Repeat steps 15 through 18 for each non-exempt employee.

20. To verify you've succeeded in the proper setups, start to run a payroll. Your new tax will show under Other Deductions. 

21. Click the Edit button to verify it's the tax you created. Do not Click Enter or you will post this payroll.  Exit without saving, once you've verified the accuracy of the tax withholding.

22. You have concluded the setup of the new tax.  Please call Support (800-996-9777) if you have questions or need help.

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