From jason.m.stanley at state.or.us Thu Jan 2 11:23:44 2020 From: jason.m.stanley at state.or.us (Jason Stanley) Date: Thu, 2 Jan 2020 19:23:44 +0000 Subject: [OSSSA218] 2020 W-4 withholding follow up Message-ID: Hello, Chris Cox here from Oregon Department of Revenue, I wanted to give some answers to some common questions I have been getting towards the changes for the W-4 in 2020. Question. Do we need to have all employee's complete a new W-4 for 2020 for the Fed's and/or Oregon. Answer. No, the Fed's and Oregon is not requiring current employee's happy with their withholding to complete a new form. A current employee wanting to change their W-4 or a new employee filing out the W-4 needs to complete both the Federal W-4 and Oregon W-4. Question. When do we need to set someone to the default 8 % withholding for Oregon. Answer. When a current employee or new employee complete the Federal W-4 for 2020 and does not complete the Oregon 2020 form or has a 2019 Oregon W-4 on file that is when you need to set their withholding at 8 %. Question. Withholding exemption claims expire February 15 of the following year. Does that mean everyone has to complete a new W-4 every year. Answer. No, Not everyone have to complete a new form every year. Only those that complete a W-4 and claim exempt from withholding. I hope this clarifies my first email. If you have any questions please email chris.cox at oregon.gov or call 503-509-5188. Thank you Chris Cox. Chris Cox Payroll & Withholding Outreach Coordinator Oregon Department of Revenue 503-509-5188 -------------- next part -------------- An HTML attachment was scrubbed... URL: From jason.m.stanley at state.or.us Mon Jan 6 08:39:15 2020 From: jason.m.stanley at state.or.us (Jason Stanley) Date: Mon, 6 Jan 2020 16:39:15 +0000 Subject: [OSSSA218] More 2020 W-4 follow up Message-ID: <9d1607fabbeb49b982ab982cf7c68af4@v-exchdb01.a4590.pers.state.or.us> Thank you everyone that has sent in questions, I have determined that my first two emails had parts that were not clear. I hope this corrects any concerns. The IRS has changed their W-4 withholding form starting Jan 1 2020, therefore Oregon has to make changes to the process for the W-4. Below are the changes that people need to know. * Employees need to fill out an Oregon Form OR-W-4 for changes to Oregon withholding after 1/1/2020. The default withholding rate of 8 percent will be required in certain situations when a taxpayer provides their employer a Federal Form W-4 after 1/1/2020 and does not have an Oregon Form OR-W-4 on file. * Withholding exemption claim expires February 15 of the year following the exemption election and the individual must provide a new exemption certificate to claim an exemption from withholding for any subsequent tax year. * Please see ORS 150-316-0234, 150-316-0237 and 150-316-0257 if you want to see the rules. Question: Do you need to have all employee's complete a new W-4 for 2020 for the Fed's and Oregon. Answer: No, the Fed's and Oregon are not requiring current employee's happy with their withholding to complete a new form. In 2020 current employee that change their Federal withholding(or a new employee) will use the Federal 2020 for those people they need to have Oregon W-4 on file (OR W-4 2019/2020). Question: When do we need to set someone to the default 8 % withholding for Oregon. Answer: When a current employee or new employee turns in the Federal W-4 for 2020 to change their Federal Withholding they must have a Oregon 2019/2020 W-4 on file. If they don't you need to set their withholding at 8 %. Example: If employee A comes to you and says I need to update my Federal withholding, you need to give them the 2020 Federal W-4 and 2020 Oregon W-4. Employee A does not turn in the 2020 Oregon W-4 but only gives you the 2020 Federal W-4. You look and see that employee A does not have an Oregon 2019 W-4 on file. This is where you will default to 8 % for OR State withholding. Question: Withholding exemption claims expire February 15 of the following year. Does that mean everyone has to complete a new W-4 every year. Answer: No, Not everyone will have to complete a new form every year. Only those that complete a W-4 and claim exempt from withholding. Example: Employee H completed a Oregon 2019 W-4 and claimed exempt from Oregon withholding. Employee H will need to complete a 2020 W-4 for Oregon because the exemption only lasts for a year. If you have any questions please email chris.cox at oregon.gov or call 503-509-5188. Thank you Chris Cox. *****CONFIDENTIALITY NOTICE***** This e-mail may contain information that is privileged, confidential, or otherwise exempt from disclosure under applicable law. If you are not the addressee or it appears from the context or otherwise that you have received this e-mail in error, please advise me immediately by reply e-mail, keep the contents confidential, and immediately delete the message and any attachments from your system. Chris Cox Payroll & Withholding Outreach Coordinator Oregon Department of Revenue 503-509-5188 -------------- next part -------------- An HTML attachment was scrubbed... URL: