OAR 150-316-0359
Withholding: Annual Report by Employer

(1) Definitions. As used in this rule:
(a) “Employer” has the meaning given that term in ORS 316.162 (Definitions for ORS 316.162 to 316.221) and also includes lenders, sureties, and other persons subject to withholding and reporting requirements under ORS 316.169 (Circumstances in which person other than employer required to withhold tax).
(b) “Payer” has the meaning given that term in ORS 316.189 (Withholding of state income taxes from certain periodic payments)(1)(g).
(c) “Payroll service provider” is any person that prepares payroll tax returns on behalf of another person for remuneration.
(d) “Periodic payment” has the meaning given that term in ORS 316.189 (Withholding of state income taxes from certain periodic payments)(1)(h).
(e) “W-2” means the federal Form W-2 required to be filed under 26 USC § 6051 with the addition of the information required under section (3) of this rule.
(f) “Wages” has the meaning given that term in ORS 316.162 (Definitions for ORS 316.162 to 316.221).
(2) W-2 reports.
(a) Every employer or other payer must complete an individual W-2 for each employee. The W-2 must contain the same information as is required to be reported on a federal W-2 including:
(A) Total state and local wages;
(B) State and local tax withheld during the calendar year; and
(C) The Oregon business identification number of the employer.
(b) The employer or other payer must use a federal W-2 for purposes of section (2) of this rule. If the employer or other payer is withholding from certain periodic payments, the employer or payer must use federal Form 1099-R for purposes of section (2) of this rule.
(c) The employer or other payer must provide a copy of the W-2 to the employee within 31 days of the close of the calendar year. If an employee is terminated and requests a copy of the W-2, the employer must provide the form to the employee within 30 days of either the request or the final wage payment, whichever is later.
(d) The information in the W-2 must be filed electronically with the department.
(e) Under ORS 314.385 (Form of returns), the due date for electronic filing of W-2s for Oregon purposes is the same as the federal due date for electronically filed W-2s.
(3) Reporting for Statewide Transit Tax Withheld.
(a) Employers must report statewide transit tax withheld in Box 14 of the W-2 with the designation ORSTT W/H in addition to the requirements in subsection (2)(a) of this rule.
(b) Subsection (3)(a) of this rule is effective for tax years beginning on or after January 1, 2019.
(4) Employer Reconciliation Reports (Form WR and Statewide Transit Tax Annual Report).
(a) Every employer must file a summary of total compensation paid, Oregon income tax withheld, and statewide transit tax withheld for each employee. 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.
(b) The reconciliation reports for income tax withholding and statewide transit tax must be filed electronically with the department.
(c) If the reconciliation reports for income tax withholding and statewide transit tax are not filed within 30 days of the department’s notice to the employer of a failure to file, a $100 failure-to-file penalty applies for each instance.
(d) If there is a difference between the amount paid to the department by the employer and the amount withheld by the employer from the employees’ wages, the employer must explain the difference on the report.
(e) The due date for each reconciliation report is the same as the due date of the corresponding federal report for income tax withholding. If the employer ceases doing business, each reconciliation report is due within 30 days of termination of business.
(f) Subsection (4)(b) is effective for tax years beginning on or after January 1, 2019 for income tax withholding and statewide transit tax reconciliation reports.
(5) Payer Reconciliation Reports.
(a) Every payer must file a summary of total periodic payments paid and Oregon income tax withheld for each payee. Each reconciliation report must include a reconciliation of income tax remitted to the department by the payer for the calendar year to the total of income tax withheld from payees’ pay for the calendar year.
(b) The reconciliation report for income tax withholding must be filed electronically with the department.
(c) If the reconciliation reports for income tax withholding are not filed within 30 days of the department’s notice to the payer of a failure to file, a $100 failure-to-file penalty applies for each instance.
(d) If there is a difference between the amount paid to the department by the payer and the amount of income tax withheld by the payer from the payees’ periodic payments, the payer must explain the difference.
(e) The due date for each reconciliation report is the same as the due date of the corresponding federal report for income tax withholding. If the payer ceases doing business, each reconciliation report is due within 30 days of termination of business.
(f) Subsection (5)(b) is effective for tax years beginning on or after January 1, 2019 for income tax withholding reconciliation reports.
(6) Penalties. The department will assess penalties, as described in ORS 316.202 (Reports by employer)(5), if an employer or other payer fails to file W-2s by the due date as required under subsection (2)(e) of this rule or the employer or other payer files incorrect or incomplete W-2s.
(a) A W-2 is incorrect or incomplete if one or more of the following occur:
(A) Identifying employee information is missing, such as the first or last name or social security number.
(B) The W-2 contains an incorrect statement of state income tax withheld, federal income, or state income amounts. Obvious math or clerical errors are not considered an incorrect statement for this purpose.
(C) Other information is missing or incorrect on the W-2.
(b) An employer or other payer knowingly fails to file a W-2 by the due date if:
(A)(i) The W-2 was not received by the department on or before the due date of the corresponding federal Form W-2 for the tax year under consideration;
(ii) The employer or other payer has been assessed the penalty under ORS 316.202 (Reports by employer)(5)(a) for one or more filing periods preceding the period at issue; and
(iii) The employer or other payer fails to file the W-2 upon written request to file by the department; or
(B) The department determines that the facts and circumstances in the particular case warrant penalty assessment.
(c) An employer or other payer knowingly files an incomplete, false, or misleading W-2 if one or more of the following occur:
(A) The employer or other payer has a pattern of repeatedly filing incorrect W-2s;
(B) The employer or other payer failed to correct the W-2 upon discovering incorrect information;
(C) The employer or other payer issued a corrected W-2 upon written request of the department;
(D) The amount of the potential penalty is less than the cost of complying with the requirement to include correct information on the W-2;
(E) The department determines that the facts and circumstances in the particular case warrant penalty assessment.
(d) A penalty may be assessed under ORS 316.202 (Reports by employer)(5)(b) even though a prior penalty assessed under ORS 316.202 (Reports by employer)(5)(a) was waived under OAR 150-305-0062 (Discretionary Penalty Waivers for Information Returns).
(7) If the employer or other payer fails to produce documentation to support the information on the W-2 or the number of W-2s required to be filed, the department will use the best information available to determine the appropriate penalty assessment amount.
(8) The department may grant an exception to the filing requirements in sections (2), (4), or (5) of this rule upon a showing of undue hardship. Undue hardship is based on the facts and circumstances specific to each employer or payer and determined on a case-by-case basis.
[Publications: Contact the Oregon Department of Revenue for information about how to obtain a copy of the publication referred to or incorporated by reference in this rule pursuant to ORS 183.360 (Publication of rules and orders)(2) and ORS 183.355 (Filing and taking effect of rules)(1)(b).]

Source: Rule 150-316-0359 — Withholding: Annual Report by Employer, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=150-316-0359.

150‑316‑0006
Application of Capital Losses and Capital Loss Carryforwards 150‑316‑0007
Policy — Application of Various Provisions of the Federal Internal Revenue Code 150‑316‑0009
Policy — Application of Various Provisions of Tax Law to Domestic Partners 150‑316‑0015
Adoption of Federal Law 150‑316‑0020
Tax Reform Act of 1984 Adjustments 150‑316‑0025
Definition: “Resident” 150‑316‑0027
Status of Individuals in a Foreign Country 150‑316‑0035
Oregon Net Operating Losses — Treatment After 1984 150‑316‑0040
Administrative and Judicial Interpretations 150‑316‑0043
Qualified Business Income Reduced Tax Rate (QBIRTR) 150‑316‑0045
Taxable Income of Nonresidents and Part-year Residents 150‑316‑0050
Farm Capital Gain 150‑316‑0055
Transitional Provision to Prevent Doubling Income or Deductions 150‑316‑0060
Taxable Income of Resident 150‑316‑0065
Social Security and Railroad Retirement Benefits Eligible for Subtraction 150‑316‑0080
Credit for Income Taxes Paid to Another State 150‑316‑0082
Credit for Taxes Paid to Another State When Paid by a Pass-Through Entity 150‑316‑0084
Credit for Income Taxes Paid to Another State — Computation 150‑316‑0086
Credit for Income Taxes Paid to Other States — Proof Required and Procedure for Obtaining the Credit 150‑316‑0088
Addition of Taxes Paid to Another State Claimed as an Itemized Deduction 150‑316‑0090
Credit for Duplicative State Taxation Relating to Different Years 150‑316‑0115
Disabled Child Exemption Credit 150‑316‑0120
Credit for Political Contributions 150‑316‑0125
Credit for the Gain on the Sale of a Residence Taxed by Another State 150‑316‑0130
Credit for Installation of Alternative Energy Devices 150‑316‑0135
Proration of Income and Deductions for Nonresidents and Part-Year Residents 150‑316‑0145
Proration for Pass-through Entity Income of Part Year Oregon Residents 150‑316‑0150
Separate or Joint Federal Returns for Spouses in a Marriage 150‑316‑0155
Nonresident Partners: Guaranteed Payments 150‑316‑0157
Nonresident Partners: Other Methods of Allocation and Apportionment 150‑316‑0165
Gross Income of Nonresidents 150‑316‑0167
Gross Income of Nonresidents 150‑316‑0169
Gross Income of Nonresidents 150‑316‑0171
Gross Income of Nonresidents 150‑316‑0173
Gross Income of Nonresidents 150‑316‑0175
Gross Income of Nonresidents 150‑316‑0179
Student Loan Interest Deduction — for Part-Year and Nonresidents 150‑316‑0181
Moving Expense Deduction — for Part-year and Nonresidents 150‑316‑0183
Gross Income of Nonresidents 150‑316‑0185
Gross Income of Nonresidents: Waterway Workers 150‑316‑0195
Alimony Deduction — for Part-Year and Nonresidents 150‑316‑0197
Nonresident Deduction for Contributions to IRA, Keogh, or Qualified Medical Savings Accounts 150‑316‑0205
Credit for Taxes Paid to State of Residence 150‑316‑0225
Retirement Income Credit 150‑316‑0230
Subtraction for Previously Taxed Contributions 150‑316‑0234
“Withholding Statement” and “Exemption Certificate” 150‑316‑0235
Withholding: Basis of Amount Withheld 150‑316‑0237
Employees Exempt from Withholding 150‑316‑0239
Withholding on Fringe Benefits 150‑316‑0241
Independent Contractor Definition 150‑316‑0243
Personal Liability of Responsible Officers, Members, or Employees for Taxes Withheld 150‑316‑0250
Bonding Requirements for Delinquent Withholding Employers 150‑316‑0255
Withholding by Employers 150‑316‑0257
Employer’s Election of Method of Computing Withholding 150‑316‑0265
Withholding Payments: Cash Basis 150‑316‑0267
Additional Time to File Reports 150‑316‑0275
Treatment of Payroll Based Program Overpayments 150‑316‑0282
Exemptions for Military Personnel 150‑316‑0284
Penalty 150‑316‑0290
Procedure for Correcting the Filing of Withholding Certificates 150‑316‑0295
Credit for Tax Withheld 150‑316‑0297
Where Taxpayer Reports on Fiscal Year Basis 150‑316‑0305
Withholding Income Taxes on IRAs, Annuities, and Compensation Plans 150‑316‑0307
Withholding Income Taxes on IRAs, Annuities, and Compensation Plans 150‑316‑0315
Alternative Withholding Payment Method for Employers to Avoid Undue Burden 150‑316‑0320
Voluntary Withholding for Retired Members of the Uniformed Services 150‑316‑0325
Voluntary Withholding for Civil Service Annuitants 150‑316‑0330
Semiannual Reports and Payments 150‑316‑0332
Withholding: Payment Due Dates 150‑316‑0334
Withholding Tax Payment Requirements for Agricultural Employers 150‑316‑0336
Employee’s Rights 150‑316‑0345
Requirement to use Electronic Funds Transfer 150‑316‑0347
Electronic Funds Transfer. Payroll taxes and corporation estimated income and excise taxes not combined in determining mandate. Payments to be included. 150‑316‑0355
Withholding: Payment and Reports 150‑316‑0357
Waiver of Termination Reports 150‑316‑0359
Withholding: Annual Report by Employer 150‑316‑0361
Combined Reports and Statewide Transit Tax Reports: Agricultural Employers 150‑316‑0370
Liability for Unpaid Withholdings 150‑316‑0372
Officer Liability: Joint Determination of Liability Conference 150‑316‑0380
Withholding Penalties 150‑316‑0385
Nonresident Alternate Filing 150‑316‑0390
Deductions Allowed on Either the Inheritance Tax Return or the Fiduciary Income Tax Return 150‑316‑0395
Tax Treatment of Unincorporated Organization 150‑316‑0400
Resident and Nonresident Estates and Trusts 150‑316‑0402
Oregon Qualified Trust Tax Return 150‑316‑0410
Fiduciary Adjustment 150‑316‑0415
Accumulation Distribution Credit for Oregon Taxes Paid by Trust During Income Accumulation Years 150‑316‑0420
Taxable Income of Nonresident Estate or Trust 150‑316‑0425
Oregon Multiple Funeral Trust Tax Return 150‑316‑0427
Persons Required to Make Returns 150‑316‑0435
Petitioning Department to Equally Split Joint Liability 150‑316‑0440
Innocent Spouse, Separation of Liability, and Equitable Relief Provisions 150‑316‑0445
Liability of Fiduciaries 150‑316‑0450
Decedent’s Estate: Request for a Final Tax Determination 150‑316‑0452
Decedents’ Estate: Application for Discharge from Personal Liability for Tax on Decedent’s Income 150‑316‑0465
Estimated Tax 150‑316‑0470
Allocation of Joint Estimated Tax Payments 150‑316‑0475
Estimated Tax: Farmer’s and Fisher’s 150‑316‑0480
Estimated Tax: Application of Prior Year Overpayment (Refund) 150‑316‑0485
Tax Used to Compute Underpayment of Estimated Tax 150‑316‑0487
Estimated Tax: Underpayment Interest Not Imposed if There is a Casualty, Disaster or Other Unusual Circumstances 150‑316‑0489
Estimated Tax: Underpayment Interest Not Imposed If There Is Reasonable Cause 150‑316‑0491
Estimated Tax: Partnership and S Corporation Income of Part-year Residents and Nonresidents 150‑316‑0493
Required Installments for Estimated Tax 150‑316‑0495
Estimated Tax: Joint Return to Single or Separate Return 150‑316‑0497
Estimated Tax: Single or Separate Returns to Joint Return 150‑316‑0505
Oregon Lottery Winnings and Losses 150‑316‑0507
Modification of Federal Taxable Income: Interest and Dividends 150‑316‑0509
U.S. Government Obligations 150‑316‑0511
Addition for Original Issue Discount (OID) 150‑316‑0513
Modification of Federal Taxable Income: Adding Interest or Dividends of the United States Exempted by Federal Income Tax Law 150‑316‑0515
Modification of Federal Taxable Income: Adding Federal Estate Tax Attributable to Income in Respect of a Decedent Not Taxable by Oregon 150‑316‑0519
Gain or Loss Upon the Sale of State and Municipal Bonds of Other States (Foreign States) 150‑316‑0525
U.S. Government Interest in Retirement Accounts 150‑316‑0530
Pool of Assets that Qualify to Pay State Exempt-Interest Dividends 150‑316‑0535
Federal Tax Deduction: Accrual Method of Accounting Required 150‑316‑0537
Adjustment of Federal Tax Liability 150‑316‑0545
Election to Include Child’s Unearned Income — Addition Required 150‑316‑0550
Special Oregon Medical Subtraction 150‑316‑0555
Modification of Federal Taxable Income: Itemized vs. Standard Deduction 150‑316‑0557
Modification of Federal Taxable Income: Oregon Income Tax Claimed as an Itemized Deduction 150‑316‑0559
Modification of Federal Taxable Income: Previously Taxed Contributions to Pension or Annuity 150‑316‑0565
Basis of Depreciable Assets Moved into Oregon 150‑316‑0567
Property Subject to Accelerated Cost Recovery System 150‑316‑0569
Adjustment to Income for Basis Differences 150‑316‑0575
Amount Specially Taxed Under Federal Law to Be Included in Computation of State Taxable Income: Accumulation Distributions 150‑316‑0580
Definition for Severely Disabled Exemption 150‑316‑0585
Exemption for Blind and Severely Disabled 150‑316‑0590
Substantiation for Permanently Severely Disabled 150‑316‑0595
Exempt Income of Native Americans 150‑316‑0600
Oregon Investment Advantage Apportionable Income Exemption 150‑316‑0605
Military Pay Subtraction 150‑316‑0607
First-time Home Buyer Savings Account 150‑316‑0610
Road Construction Worker’s Travel Expenses 150‑316‑0615
Substantiation Required for Construction Worker and Loggers Expenses 150‑316‑0625
(Miscellaneous) Valuation of Forest Land or “Farm Use” Land for Oregon Inheritance Tax Purposes 150‑316‑0630
Scholarship Awards used for Housing Expenses 150‑316‑0635
Subtraction for Land Contributed to Educational Institutions 150‑316‑0640
Subtraction for Qualified Investment of Severance Pay 150‑316‑0650
Waiver of Frivolous Return Penalty Imposed Under ORS 316.992 150‑316‑0652
Frivolous Return Penalty
Last Updated

Jun. 8, 2021

Rule 150-316-0359’s source at or​.us