Oregon local tax calculations

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Multnomah County Preschool for All personal income tax

Beginning calendar year 2022, employers with a Multnomah County location are required to withhold this tax from employees who work within the county and earn $200,000 or more during the calendar year.

The Multnomah County tax is automatically assigned to employees working in Multnomah County. The tax will be withheld when the annualized subject pay exceeds the $200,000 threshold less the allowable Oregon deductions. This is a tiered tax using tax rates of 1.5% and 3.0% in 2022. For more information, see the Multnomah County withholding requirements and formulas.

If you need to make a payroll item exempt from the Multnomah County tax, follow these steps.

  1. Go to Setup > Payroll Items.
  2. Edit the payroll item that should be exempt.
  3. On the Tax Exemptions tab, mark the OR Counties checkbox.

Metro Supportive Housing Services income tax

Beginning calendar year 2022, employers located within six Metro Council districts in the Portland area are required to withhold this tax from employees who work in the districts and earn $200,000 or more during the calendar year.

Note: The Oregon Metro Supportive Housing Services Income Tax is not automatically enabled on clients due to the complexity of identifying the boundaries of the six applicable Metro Council districts. For clients that are doing business within the six districts, the Wage Exempt checkbox for the Oregon Metro Supportive Housing Services Income Tax will need to be unmarked in the Taxes section in the Payroll Taxes tab of the Setup > Clients screen.

See a map of the six applicable Metro Council districts.

Determine if a business address is within the boundaries of a Metro District.

The tax will be withheld when the annualized gross taxable wages exceed the $200,000 threshold less the allowable Oregon deductions. In 2022 the tax rate is 1.0%. For more information, see the Metro Supportive Housing Services income tax employer withholding requirements.

If you need to make a payroll item exempt from the Metro Supportive Housing Services income tax, follow these steps.

  1. Go to Setup > Payroll Items.
  2. Edit the payroll item that should be exempt.
  3. On the Tax Exemptions tab, mark the OR Cities checkbox.

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