Oregon Transit Tax

Oregon transit tax is automatically deducted from all eligible employees.

For further info, see the Oregon Statewide Transit Tax authority website.

Before you implement Oregon transit tax, there are some areas you need to consider.

• What is the employee eligibility criterion

• How to exclude individual employees

• How to cost the tax

• What wage basis rules it follows

For further info, see the following sections.

What is the employee eligibility criterion

Oregon residents and nonresidents who work in Oregon are subject to the tax. There's no wage limit.

How to exclude individual employees

To exclude the wage accumulation and tax for an individual employee:

1. Open the person's tax card for editing.

2. Open the Oregon component for editing.

3. In Other Exemptions, select the appropriate exemption for state transit tax.

4. Save your work.

How to cost the tax

To process the Oregon transit tax, cost the following predefined elements using the Tax Calculated input value.

• State Transit Tax

• State Transit Tax Not Taken

What wage basis rules it follows

Oregon State Transit Tax rules follow the Oregon State Income Tax wage basis rules.

Employee contributions are accumulated using the State Transit Tax balances.