Oregon discusses new OR-W-4 form to estimate withholding
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Thursday, February 14, 2019

Oregon discusses new OR-W-4 form to estimate withholding

By Payroll and Entitlements Editorial Staff

The Oregon Department of Revenue issued a press release urging personal income taxpayers to perform a paycheck checkup to ensure they are withholding enough from their wages. Failure to withhold appropriately in 2019 could lead to an unexpected tax bill in 2020. Owing to the recent federal law changes, the federal W-4 form no longer meets the state’s withholding requirements; therefore, for tax year 2019, taxpayers are required to use the new Oregon Form OR-W-4, Oregon Withholding, and online withholding calculator so that they can accurately determine the appropriate withholding amount for the state. The new form and calculator are available on the department’s website at https://www.oregon.gov/dor/.

Further, the release informs taxpayers that they should check their withholding annually, as there are some groups of taxpayers who are more at risk for under-withholding including taxpayers who: (1) started a new job in 2018; (2) updated their federal Form W-4 in 2018; (3) previously claimed federal deductions that were impacted by federal law changes; and (4) live in a two-earner household. The amount of tax due as shown on an employee’s return is reconciled with the amount of tax withheld for that year. Where there is an excess withholding, it results in a refund; however if the amount of tax withheld is not sufficient, the taxpayer is required to pay the difference by April 15, 2019. (Press Release, Oregon Department of Revenue, January 15, 2019.).

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