Oregon: Check wage withholding

Combined with Oregon’s dependence upon the federal form to determine state withholding, these changes have created a situation where taxpayers may not be withholding enough income taxes from their wages to cover their Oregon income tax liability. This may mean that more taxpayers have a tax to pay at the end of the year, or have more tax to pay than usual, leaving them with unexpected and difficult financial burdens.

The department has a withholding calculation worksheet available that has been updated to accommodate recent federal changes. It provides taxpayers with a way to check their withholding so they can make any necessary changes — including adjusting allowance numbers and opting to withhold additional funds from upcoming paychecks — before the end of the year to reduce the amount owed on 2018 returns. The worksheet (OR-WW, Oregon Withholding Worksheet) is available at www.oregon.gov/dor.

Oregon wage earners who use separate Form W-4s for federal and Oregon income tax withholding will have a new option for withholding documentation in 2019 with the release of the Oregon-specific Form W-4. With this form, employees will no longer need to complete a separate federal form W-4 and write “For Oregon only” at the top and will give Oregon more flexibility in adapting to future federal tax law changes without unnecessarily burdening employees or employers.