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<p class="MsoNormal">Greetings Payroll Partners,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">In January we communicated with you that OSPS will regularly be making quarterly tax adjustments to ensure accurate annual and quarterly tax reporting. These adjustments will apply to employees who had any change from wages earned (salary)
to paid leave, which generates negative hours that need to be corrected as negative hours will not calculate the correct tax withholding amount for the quarter. Workers Benefit Fund (WBF) is the most common tax adjustment due to changes made to time entry
after R1. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Adjustments have been processed through off-cycle payments with zero gross and net payroll, posted at quarter-end, and will have no impact on the employees' pay. Each adjustment will include:<o:p></o:p></p>
<ul style="margin-top:0in" type="disc">
<li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo1">A positive or negative entry for the tax correction.<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo1">A corresponding balancing entry for state income tax (SIT).<o:p></o:p></li></ul>
<h2>Common Reasons for Tax Adjustments<o:p></o:p></h2>
<ol style="margin-top:0in" start="1" type="1">
<li class="MsoListParagraph" style="margin-left:0in;mso-list:l1 level1 lfo2"><b>Net Negative Pay</b>: Statewide Transit Tax (STT) and WBF do not calculate on negative wages and require manual correction. Paid Leave Oregon adjusts only up to the quarter-to-date
(QTD) withholding limit. <o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l1 level1 lfo2"><b>Retro Time Changes</b>: Adjustments to WBF-eligible hours in prior periods can create negative hours in the current period, requiring correction to meet quarterly reporting requirements.<o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l1 level1 lfo2"><b>Reversals with Different Pay Dates</b>: These must be moved to the correct quarter for accurate reporting and amendments.<o:p></o:p></li></ol>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">This process will occur quarterly to ensure compliance and accurate reporting for all agencies, and the average tax adjustment is under $1.00. The list of employees impacted can be found on the Workday Drive here:
<i>Drive > Payroll Resources > Communications > Q1 2026 Tax Adjustments</i><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">If you have questions, please contact me at <b><a href="mailto:Timothy.Lowry@das.oregon.gov">Timothy.Lowry@das.oregon.gov</a>.
</b><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Thank you,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal" style="background:white"><span style="color:black">Tim</span><o:p></o:p></p>
<p class="MsoNormal" style="background:white"><o:p> </o:p></p>
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<p class="MsoNormal" style="background:white"><span style="color:black"><img border="0" width="98" height="102" style="width:1.0208in;height:1.0625in" id="Picture_x0020_2039265190" src="cid:image001.png@01DCCB67.F8183BC0"></span><o:p></o:p></p>
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<p class="MsoNormal" style="background:white"><b><span style="color:black">Timothy M. Lowry
</span></b><i><span style="color:black;mso-ligatures:none">(he, him)</span></i><o:p></o:p></p>
<p class="MsoNormal" style="background:white"><span style="color:black">Oregon Statewide Payroll Services Manager</span><o:p></o:p></p>
<p class="MsoNormal" style="background:white"><span style="color:black">971-718-4230</span><o:p></o:p></p>
<p class="MsoNormal" style="background:white"><u><span style="color:black"><a href="https://www.oregon.gov/das/Pages/index.aspx"><span style="color:blue">Oregon Department of Administrative Services</span></a></span></u><o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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