OVERVIEW:  

The state of Oregon’s new Transit Tax goes into effect on July 1, 2018.  This tax applies to all employees, whether exempt or not and is based on gross wages.  Currently, this tax will not be reported on Form W-2, but that might change next year.

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.

APPROACH:

Establish a new liability account to track this activity.  Set up a new Deduction Type with the name of OR Transit Tax.  Add the new deduction type to every active employee with the settings of Gross% and .1%.  Run a test payroll to verify settings.

DOWNLOAD STEP BY STEP INSTRUCTIONS:

 

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