Oregon Tax

For Oregon residents, you specify the employee's status and exemptions.

Deltek Modification Date - 1/18/19

Enter the following field information for residents of Oregon on the Withholding grid on the Payroll tab of the Employees hub:

Field	Description
Status	Enter the status claimed by the employee for federal income tax purposes on Form W-4: S: Single and claiming fewer than 3 exemptions M: Married, or single and claiming 3 or more exemptions If the employee did not submit Form W-4, enter S in this field.
Exemptions	Enter the total number of exemptions claimed by the employee for federal income tax purposes on Form W-4. This figure includes: Personal exemptions for self and spouse not claimed on other Form W-4. Additional exemptions for age and blindness. Exemptions for dependents. If the employee did not submit Form W-4, enter zero in this field.
Other Exemptions	Oregon’s tax calculations do not use the Other Exemptions field.

Supplemental Wages

The tax rate for supplemental wages (bonus runs) is 9%.

Automatically Calculated Variables

DPS automatically computes the following variables.

Standard Deduction

The standard deduction is a table-based deduction applied to all employees. The amount of the deduction depends on the number of regular exemptions claimed in the first Exemptions field and the employee’s filing status.

Status	Maximum
Single with less than three (3) allowances	$2,270
Single with three (3) or more allowances	$4,545
Married	$4,545

Federal Income Tax Deduction

The Federal Income Tax Deduction is equal to the employee's annualized amount of federal tax withheld, up to a maximum of $6,800.

Credit for Dependents

The credit is based on the number of exemptions entered in the first Exemptions field. The amount of the credit is determined by multiplying the number of exemptions by $206.

How DPS Calculates Tax

To calculate an employee's Oregon State tax, DPS does the following:

1. Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
2. Subtracts the employee's federal income tax deduction and any 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages to determine taxable income.
3. Calculates the computed tax by applying Tax Calculation Method 1 to the taxable income.
4. Subtracts a credit (if applicable) from the computed tax to determine the net income tax.
5. Divides the net income tax by the number of pay periods in a year to determine the amount to be withheld for the pay period.
6. Rounds to the nearest dollar.