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<p class="MsoNormal">Payroll professionals,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">OSPS recently migrated a change to the State Income Tax Withholding formula. This change was done to meet the requirements of Legislative changes required by HB3601 which eliminated all personal exemption credits for tax payers with federal
adjusted gross income of more than $100,000 for single or married filing separately or more than $200,000 for married filing joint or head of household.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">This change will impact employees who claim on their W-4 a filing status of “Single” and whose wages exceed $8,333.33 per month or “Married” and whose wages exceed $16,666.67 per month. In 2019, the Oregon withholding formula allows a
credit of $17.17 per exemption claimed. This change is effective for the entire tax year and could affect prior pay periods if a corrective is set.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Example: Jane Smith, her W-4 that was entered on the P010 shows single and 2. She has a monthly salary of $10,121. In May her state withholding was $720. In June her state withholding was $754. The difference of $34 is the $17 x 2
exemptions. As a result of this her net pay decreased by $34.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">If you have questions about this or anything else then please feel free to contact the OSPS Help Desk.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Thanks,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Seth Lewis<o:p></o:p></p>
<p class="MsoNormal">Manager<o:p></o:p></p>
<p class="MsoNormal">DAS/EGS/FBS/Oregon Statewide Payroll Services<o:p></o:p></p>
<p class="MsoNormal">503-373-0198, direct<o:p></o:p></p>
<p class="MsoNormal">503-378-3518, fax<o:p></o:p></p>
<p class="MsoNormal">503-378-6777, OSPS Help Desk<o:p></o:p></p>
<p class="MsoNormal"><a href="mailto:seth.lewis@oregon.gov"><span style="color:blue">seth.lewis@oregon.gov</span></a><o:p></o:p></p>
<p class="MsoNormal">Visit Our Online Resource Center: <a href="http://www.oregon.gov/das/Financial/Payroll/Pages/Index.aspx">
<span style="color:blue">State of Oregon: Oregon Statewide Payroll Services</span></a><o:p></o:p></p>
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