Loading
The Oregon Administrative Rules contain OARs filed through September 15, 2014
 
QUESTIONS ABOUT THE CONTENT OR MEANING OF THIS AGENCY'S RULES?
CLICK HERE TO ACCESS RULES COORDINATOR CONTACT INFORMATION

DEPARTMENT OF REVENUE

 

DIVISION 267

MASS TRANSIT DISTRICTS

150-267.380(1)(c)

Wages

Generally, wages include all remuneration for services performed by an employee for the employer, including the cash value of all remuneration paid in any medium other than cash. Thus, salaries, fees, bonuses, commission on sales or insurance premiums are wages within the meaning of the statute if paid as compensation for services performed by the employee for the employer.

The basis upon which the remuneration is paid is immaterial in determining whether the remuneration constitutes wages. Thus, it may be paid on the basis of piecework or a percentage of profits; and may be paid hourly, daily, weekly, monthly or annually.

Generally, the medium in which the remuneration is paid is also immaterial. It may be paid in cash or in something other than cash. If services are paid for in a medium other than cash, the fair market value of the thing taken in payment is the amount to be included as wages.

Taxable emoluments--see OAR 150-316.162(2)(A)

Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 280 .060
Hist.: RD 10-1984, f. 12-5-84, cert. ef. 12-31-84

150-267.380(2)

Wages Exempt From Transit Payroll Tax

For purposes of the transit district payroll taxes, certain payrolls are exempted from taxation by exclusion of the amounts paid from the definition of wages. The following are clarifications of some of the allowable exemptions:

(1) All foreign insurance companies (those formed under laws from other states), their adjusters, agents, office support staff are specifically exempted by ORS 731.840. This exemption does not extend to domestic insurers, health care contractors, and motorist service clubs.

(2) ORS 267.380(2)(h) states if remuneration is not subject to withholding under ORS Chapter 316 it is not subject to the transit payroll tax. All wages paid for domestic service described in 316.162(c) are exempt from withholding and transit payroll tax. If the remuneration is not subject to withholding under ORS Chapter 316 such wages would be exempt from the transit payroll tax but generally are subject to transit self-employment tax. Unless a real estate agent meets all the requirements of 316.209, the remuneration for services performed by that agent will be subject to transit payroll taxes.

(3) ORS 267.380(4), which subjects deferred compensation to transit tax, creates an exception to the general rule stated in 267.380(2)(h), which exempts from transit tax remuneration not subject to withholding tax.

(4) The exemption in ORS 267.380(2)(c) applies to labor not in the course of the employer's trade or business. The exemption does not apply to wages for substantial labor not in the regular course of the employer's trade or business, such as the construction of a private home where the owner is the employer.

(5) Transit payroll tax is imposed only on that portion of the payroll paid with respect to duties performed by employees within the District. If an employee performs services both inside and outside the District, the employer shall prorate the wages paid to that particular employee based upon the relative amounts of time worked by that employee within and without the District.

(6) The exemption in ORS 267.380(2)(e) applies solely to seasonal labor in connection with the planting, cultivating or harvesting of agricultural crops. Transit payroll tax applies to the entire wages of "regular" farm employees even though, as a part of their duties, they engage in planting, cultivating or harvesting.

(7) Certain state agencies are exempt from transit payroll tax under the provisions of ORS 267.430.

(8) Internal Revenue Code Section 501(c)(3) institutions (charitable and other nonprofit institutions) other than hospitals are exempt from transit payroll taxes. For the purposes of ORS 267.380(2)(a), a hospital is defined as:

(a) A permanent facility or organization with facilities that include inpatient beds, and with medical services, including physician services and continuous nursing services under the supervision of registered nurses, to provide diagnosis and medical or surgical treatment primarily for but not limited to acutely ill patients and accident victims, or to provide treatment for the mentally ill.

(b) A hospital's parent or subsidiary 501(c)(3) organization that provides administrative and support functions to the hospital.

(9) Employers may be relieved of the duty to pay transit tax where it can be shown to the satisfaction of the department that subject wages paid to each individual employee will be $300 or less in a calendar year.

Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 267.380
Hist.: RD 10-1984, f. 12-5-84, cert. ef. 12-31-84; RD 8-1990, f. 12-20-90, cert. ef. 12-31-90; RD 7-1992, f. & cert. ef. 12-29-92; RD 5-1993, f. 12-30-93, cert. ef. 12-31-93; REV 4-2011, f. 12-30-11, cert. ef. 1-1-12

150-267.380(2)(h)

Employer-Employee Application

Unless the context requires otherwise, for purposes of administration of transit district payroll taxes, determination whether an employer-employee relationship exists will be made under rules adopted pursuant to state withholding statutes. See OAR 150-316.167(1) and 150-316.162(2)(j).

Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 267 .380
Hist.: RD 10-1983, f. 12-20-83, cert. ef. 12-31-83; RD 7-1992, f. & cert. ef. 12-29-92, Renumbered from 150-267.380(2)-(H); RD 7-1992, f. & cert. ef. 12-29-92

150-267.380(2)-(H) [Renumbered to 150-267.380(2)-(h)]

150-267.380(4)

Items Included in Wages

For tax years beginning on or after January 1, 1992, "wages" includes elective payments into a Simplified Employee Pension, IRC 3121(a)(5)(C) or an annuity contract, IRC 3121(a)(5)(D). Contributions, IRC 3121(v)(1)(A); to a 401k retirement plan; employee contributions under IRC 3121(v)(3)(A) and employer contributions under IRC 3121(a)(5)(E), to a government deferred compensation plan including contributions "picked up" by a governmental unit, IRC 3121(v)(1)(B) (and contributions to a nonqualified plan, a Section 457 plan, or a 403(b) annuity).

Example: Linda works for a firm subject to Lane Transit District Payroll Tax. She earned $30,000 wages for tax year 1992. She put $3,000 into her 401k retirement plan. Linda's employer also put $1,000 in her 401k. Linda's "wages," for the purpose of determining the LTD payroll tax, is $31,000.

Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 267 .380
Hist.: RD 4-1991, f. 12-30-91, cert. ef. 12-31-91

150-267.385(3)

Reports and Payments

For 1990 and subsequent years transit excise taxes are paid quarterly with the Oregon Quarterly Combined Tax Report. For purposes of quarterly filing, calendar quarters are used. The first quarter is January through March; the second quarter is April through June; the third quarter is July through September and the fourth quarter is October through December.

Payment due dates are determined by corresponding state due dates for withholding tax returns. When an employer files an Oregon Quarterly Combined Tax Report, the transit excise information and tax must be filed and paid on or before the end of the month following the quarter with the combined tax report.

For 1989 and prior years if an employer files a semi-annual withholding tax return, the transit excise tax for the 1st and 2nd quarters is due July 31. The 3rd and 4th quarter tax and return are due January 31st of the following year. No other reporting periods will be permitted without prior approval of the Department and concurrence of the transit district.

For rules governing annual agricultural filing, see OAR 150-316.202(4).

Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 267 .385
Hist.: RD 10-1984, f. 12-5-84, cert. ef. 12-31-84; RD 4-1991, f. 12-30-91, cert. ef. 12-31-91

The official copy of an Oregon Administrative Rule is contained in the Administrative Order filed at the Archives Division, 800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the published version are satisfied in favor of the Administrative Order. The Oregon Administrative Rules and the Oregon Bulletin are copyrighted by the Oregon Secretary of State. Terms and Conditions of Use

Oregon Secretary of State • 136 State Capitol • Salem, OR 97310-0722
Phone: (503) 986-1523 • Fax: (503) 986-1616 • oregon.sos@state.or.us

© 2013 State of Oregon All Rights Reserved​