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<p class=MsoNormal><font size=2 color=black face=Calibri><span
style='font-size:11.0pt;color:black'>The Oregon Statewide Payroll Application
(OSPA) has been updated with 2011 tax tables and calculations for FICA,
federal and state withholding tax. These changes are effective with
December payrolls paid January 1, 2011. Source information is
contained in the following.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Calibri><span
style='font-size:11.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><b><font size=2 color=black face=Calibri><span
style='font-size:11.0pt;color:black;font-weight:bold'>IRS Publication 1036 <o:p></o:p></span></font></b></p>
<p class=MsoNormal><font size=2 color=black face=Calibri><span
style='font-size:11.0pt;color:black'><a
href="http://www.irs.gov/pub/irs-pdf/n1036.pdf">http://www.irs.gov/pub/irs-pdf/n1036.pdf</a><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Calibri><span
style='font-size:11.0pt;color:black'>Defines the change in Social Security tax
for employees reducing the tax from 6.2% downward to 4.2%. The employer
portion of Social Security tax remains at 6.2%. The 2011 Social Security
wage base limit is $106,800. Federal withholding calculations are defined
in the publication both in terms of the value of a withholding allowance (Page
1) and the actual percentage calculation of tax withholding (Table 4 on Page 3)
<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Calibri><span
style='font-size:11.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Calibri><span
style='font-size:11.0pt;color:black'>OSPS will watch for the posting of
Publication 15 (Circular E) for tax year 2011 and notify everyone.
Publication 15 will contain all of the information in 1036 but will also have
the tax tables as well as all of the other relevant tax advisories and rules.
We note that Publication 15-B Taxable Fringe Benefits for 2011 has already been
posted. <a href="http://www.irs.gov/pub/irs-pdf/p15b.pdf">http://www.irs.gov/pub/irs-pdf/p15b.pdf</a><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Calibri><span
style='font-size:11.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Calibri><span
style='font-size:11.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><st1:State w:st="on"><st1:place w:st="on"><b><font size=2
color=black face=Calibri><span style='font-size:11.0pt;color:black;
font-weight:bold'>Oregon</span></font></b></st1:place></st1:State><b><font
color=black><span style='color:black;font-weight:bold'> Withholding Tax Formulas<o:p></o:p></span></font></b></p>
<p class=MsoNormal><font size=2 color=black face=Calibri><span
style='font-size:11.0pt;color:black'><a
href="http://www.oregon.gov/DOR/forms/business/withholding_formulas_150-206-436_2011.pdf">http://www.oregon.gov/DOR/forms/business/withholding_formulas_150-206-436_2011.pdf</a><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Calibri><span
style='font-size:11.0pt;color:black'>New this year is a phase-out of the
subtraction for federal tax withheld for annual incomes of $125,000 or greater.
OSPA has been programmed with the <b><span style='font-weight:bold'>Monthly</span></b>
formulas shown on Pages 5 & 9. We are told that DOR will update this tax
publication soon to add the display of tax tables for easy reference. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Calibri><span
style='font-size:11.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Calibri><span
style='font-size:11.0pt;color:black'>Please let us know if you have any
questions about these changes. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Calibri><span
style='font-size:11.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Calibri><span
style='font-size:11.0pt;color:black'><o:p> </o:p></span></font></p>
<p class=MsoNormal><strong><b><font size=2 color=gray face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:gray'>Sharon McKeehan,
Manager<o:p></o:p></span></font></b></strong></p>
<p class=MsoNormal><st1:State w:st="on"><st1:place w:st="on"><strong><b><font
size=2 color=gray face=Calibri><span style='font-size:11.0pt;font-family:
Calibri;color:gray'>Oregon</span></font></b></strong></st1:place></st1:State><strong><b><font
color=gray face=Calibri><span style='font-family:Calibri;color:gray'> Statewide
Payroll Services<o:p></o:p></span></font></b></strong></p>
<p class=MsoNormal><font size=2 color=gray face=Calibri><span style='font-size:
11.0pt;color:gray'>DAS/State Controller's Division</span></font><font
color=black face="Times New Roman"><span style='font-family:"Times New Roman";
color:black'><o:p></o:p></span></font></p>
<p class=MsoNormal><st1:Street w:st="on"><st1:address w:st="on"><font size=2
color=gray face=Calibri><span style='font-size:11.0pt;color:gray'>155 Cottage
Street NE</span></font></st1:address></st1:Street><font color=gray><span
style='color:gray'>, U-50<o:p></o:p></span></font></p>
<p class=MsoNormal><st1:place w:st="on"><st1:City w:st="on"><font size=2
color=gray face=Calibri><span style='font-size:11.0pt;color:gray'>Salem</span></font></st1:City><font
color=gray><span style='color:gray'>, <st1:State w:st="on">OR</st1:State>
<st1:PostalCode w:st="on">97301-3969</st1:PostalCode></span></font></st1:place><font
color=gray><span style='color:gray'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=gray face=Calibri><span style='font-size:
11.0pt;color:gray'>(503) 378-6777 ext. 230</span></font><font color=black
face="Times New Roman"><span style='font-family:"Times New Roman";color:black'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Calibri><span
style='font-size:11.0pt;color:black'>Visit our <st1:place w:st="on"><st1:PlaceName
w:st="on">Online</st1:PlaceName> <st1:PlaceName w:st="on">Resource</st1:PlaceName>
<st1:PlaceType w:st="on">Center</st1:PlaceType></st1:place>: </span></font><font
color=gray><span style='color:gray'><a
href="http://www.oregon.gov/DAS/SCD/OSPS/">http://www.oregon.gov/DAS/SCD/OSPS/</a></span></font><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Calibri><span
style='font-size:11.0pt;color:black'> <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Calibri><span
style='font-size:11.0pt;color:black'> <o:p></o:p></span></font></p>
<p class=MsoNormal><strong><b><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'>How are we doing?</span></font></b></strong><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p class=MsoNormal><strong><b><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'>Please complete our
customer service survey:</span></font></b></strong><font color=black><span
style='color:black'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=black face=Calibri><span
style='font-size:11.0pt;color:black'><a
href="http://www.surveymonkey.com/s/SCD_Feedback"
title="http://www.surveymonkey.com/s/SCD_Feedback"><em><i><font color=maroon
face=Calibri title="http://www.surveymonkey.com/s/SCD_Feedback"><span
title="http://www.surveymonkey.com/s/SCD_Feedback"><span style='font-family:
Calibri;color:maroon'>http://www.surveymonkey.com/s/SCD_Feedback</span></span></font></i></em></a></span><o:p></o:p></font></p>
<p class=MsoNormal><strong><b><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'>Your opinion matters</span></font></b></strong><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p class=MsoNormal><strong><b><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy'>Thank You!</span></font></b></strong><font
color=black><span style='color:black'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Calibri><o:p> </o:p></font></p>
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