Or. Admin. Code § 150-316-0235

Current through Register Vol. 63, No. 11, November 1, 2024

Section 150-316-0235 - Withholding: Basis of Amount Withheld

(1) Remuneration includes merchandise, stocks, bonds, room, board, or other consideration passing to the employee in payment for services.

(2) The cash value must be based upon sound principles and the department reserves the right to determine standard valuations for such items as meals, lodging, etc. If room is furnished in addition to board, no additional value will ordinarily be placed upon the room. If room and board are furnished at hotels, resorts or lodges, or if a room only, an apartment, a house or any other consideration is provided, the value, for income tax withholding and statewide transit tax purposes, will be the actual value of this remuneration. (Living quarters or meals furnished to the employee for the convenience of the employer are excluded from income pursuant to section 119 of the IRC and the regulations pertaining thereto.)

(3) Amounts paid as reimbursable expenses to an employee are not subject to income tax withholding or statewide transit tax; however, such payments must be identified either by making a separate payment or by specifically indicating the separate amount where both wages and reimbursement of expenses are made in a single payment. If an employee receives a definite weekly, monthly, or annual salary, withholding for income taxes and statewide transit taxes is required upon the entire amount even though the amount may be fixed by including an estimate of expenses which will necessarily be incurred by the employee on behalf of the employer. Only reimbursement based upon actual expenses is exempted from income tax withholding and statewide transit tax. Sickness disability benefits and other disability pensions paid by an employer to an employee are emoluments unless they fall within exemptions of sections 104 to 106 of the IRC.

(4) Where an employer-employee relationship exists between spouses in a marriage, the employing spouse must withhold income taxes and statewide transit taxes. Sums received by unemancipated minors which are not gifts, but compensation for bona fide personal services rendered to parents, require withholding for income taxes and statewide transit taxes.

(5) Withholding for income taxes and statewide transit taxes is required from distributions from a deferred compensation plan as defined in IRC 457 or a nonqualified plan under IRC 403 if the contributions to the plan or payments from the plan are wages.

(6) Wages due but not yet paid at the date an employee dies are not considered wages and are not subject to withholding for income taxes or statewide transit taxes.

(7) Withholding for income taxes and statewide transit taxes is required from accrued vacation pay, even though disbursed after termination of employment.

Or. Admin. Code § 150-316-0235

1-69; 11-71; RD 15-1987, f. 12-10-87, cert. ef. 12-31-87; RD 4-1991, f. 12-30-91, cert. ef. 12-31-91; RD 7-1992, f. & cert. ef. 12-29-92; RD 5-1993, f. 12-30-93, cert. ef. 12-31-93; REV 6-1998, f. 11-13-98, cert. ef. 12-31-98; Renumbered from 150-316.162(2)-(A), REV 61-2016, f. 8-15-16, cert. ef. 9/1/2016; REV 3-2017, f. 5-31-17, cert. ef. 6/1/2017; REV 78-2017, amend filed 12/28/2017, effective1/1/2018

Publications: Contact the Oregon Department of Revenue for information about how to obtain a copy of the publication referred to or incorporated by reference in this rule pursuant to ORS 183.360(2) and ORS 183.355(1)(b).

Statutory/Other Authority: ORS 305.100 & 320.550

Statutes/Other Implemented: ORS 316.162 & 320.550