Reduction in payroll taxes from January 2005
Beginning in January 2005, most Oregon employers will see a reduction in the payroll taxes which support the unemployment insurance (UI) program. Oregon's system of payroll taxes adjusts each year according to a formula set by law. The formula indicates which of eight schedules are used in determining payroll taxes. In 2005, Oregon will be in schedule V (down from Schedule VI in 2004). Using Tax Schedule V instead of VI will reduce UI taxes on average by about 9% which adds up to a savings of about $62 million.

On a related matter, the Taxable Wage Base will stay the same, at $27,000, for Calendar Year 2005. The Taxable Wage Base is indexed to wages and contributes to the solvency of the Unemployment Insurance Trust Fund - the fund used to pay benefits to Oregonians out of work through no fault of their own.

Individual employer tax rates are based on an employer's experience and while not every employer will see a reduction, even those whose experience ratings may go up will see a reduction from what they would have paid under Schedule VI.

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...back to 21 October 2004

Further information:
www.oregon.gov/..._schedule.shtml

Tax relief for victims of tropical storms and hurricanes
Oregon taxpayers who missed the August 15, 2004, filing or payment deadline for Oregon taxes because they were affected by tropical storms or hurricanes will not receive penalties if they file or make payment by October 15.

Affected taxpayers include relief workers; individuals and businesses located in the disaster area; and those whose tax records, including records needed for tax deposits, are located in the disaster area.

To qualify, affected taxpayers should write the name of the storm that affected them in blue or black ink at the top of the Oregon return or send a letter to the Oregon Department of Revenue. The department will abate any late filing or late payment penalties for returns and payments due on August 15. The department will not waive the late payment penalty on taxes that were due before August 15. The department will waive interest on a case-by-case basis.

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...back to 23 September 2004

Further information:
tax.ohio.gov/..._092104.stm

Oregon
Several changes to Oregon income tax law are to vote on in a special election on February 3, 2004, including the introduction of a temporary surcharge. The Department of Revenue has asked taxpayers not to file their returns until election results are known.

Further information:
www.dor.state.or.us/taxInfo/Taxchange.html
...back to 15 January 2004