ezPaycheck: How to Handle Oregon Statewide Transit Tax
Oregon Transit Tax
On July 1, 2018, Oregon employers must start withholding the tax (one-tenth of 1 percent or .001) from:
Wages of Oregon residents (regardless of where the work is performed).
Wages of nonresidents who perform services in Oregon.
The statewide transit tax is calculated based on the employee's wages as defined in ORS 316.162. Employees who aren't subject to regular income tax withholding due to high exemptions, wages below the threshold for income tax withholding, or other factors are subject to statewide transit tax withholding.
The definition of "wages" excludes amounts paid to certain types of employees and independent contractors (ORS 316.162). Self-employment income isn't subject to this tax.