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<p class="MsoNormal"><span style="font-size:14.0pt;color:red">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.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt">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.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in;text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-size:14.0pt;font-family:"Arial",sans-serif"><span style="mso-list:Ignore">•<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:14.0pt">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.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in;text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-size:14.0pt;font-family:"Arial",sans-serif"><span style="mso-list:Ignore">•<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:14.0pt">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.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in;text-indent:-.25in;mso-list:l0 level1 lfo1">
<![if !supportLists]><span style="font-size:14.0pt;font-family:"Arial",sans-serif"><span style="mso-list:Ignore">•<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:14.0pt">Please see ORS 150-316-0234, 150-316-0237 and 150-316-0257 if you want to see the rules.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt">Question: Do you need to have all employee’s complete a new W-4 for 2020 for the Fed’s and
Oregon.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:red">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).<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt">Question: When do we need to set someone to the default 8 % withholding for Oregon.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:red">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 %. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:red"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#2F5597">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.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt">Question: Withholding exemption claims expire February 15 of the following year. Does that mean everyone has to complete a new W-4 every year.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:red">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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:#2F5597">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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#2F5597"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt">If you have any questions please email
<a href="mailto:chris.cox@oregon.gov"><span style="color:#0563C1">chris.cox@oregon.gov</span></a> or call 503-509-5188.</span><span style="font-size:10.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt">Thank you Chris Cox. </span><span style="font-size:10.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#2F5597"><o:p> </o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;margin-left:2.5in;text-indent:.5in">
<b><i><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:red">*****CONFIDENTIALITY NOTICE*****</span></i></b><span style="font-size:10.0pt;font-family:"Times New Roman",serif;color:red"><o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><b><i><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:red">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. </span></i></b><span style="font-size:10.0pt;font-family:"Times New Roman",serif;color:red"><o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><b><span style="font-family:"Arial",sans-serif;color:black">Chris Cox<o:p></o:p></span></b></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-family:"Arial",sans-serif;color:black">Payroll & Withholding<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-family:"Arial",sans-serif;color:black">Outreach Coordinator<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-family:"Arial",sans-serif;color:black">Oregon Department of Revenue<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-family:"Arial",sans-serif;color:black">503-509-5188<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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