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For proper Oregon tax withholding, the Annual Standard Deduction Amount must be entered in the next to last field in each employee's record. The Annual Tax Credit Amount must be entered in the last field in each employee's record.
The 2025 Annual Standard Deduction Amount and Annual Tax Credit Amount can be found for Oregon at the website shown below:
https://www.oregon.gov/dor/forms/FormsPubs/withholding-tax-formulas_206-436_2025.pdf
Shown below are the Annual Standard Deduction amounts for 2025:
Single - $2835
Married - $5670
The Annual Tax Credit amount is $256 for 2025.
The employee deduction for the Oregon Worker's Benefit Fund is unique, because the employee contribution is calculated as a rate per hour. The TKT Payroll 3rd Miscellaneous Deduction should be used for deductions that are caculated by a rate times total hours worked ( ie. Oregon Worker's Benefit Fund). The deduction can be switched to calculate times hours by selecting "Utilities" on the main menu bar. Click "Settings", and change the 3rd Deduction Title in the lower left corner to "WBF". Check the yellow box below the 3rd Deduction Title. Click the "Save Changes" button.
The 2025 WBF assessment rate is $ .02/Hr. The worker's/employee's portion is only 1/2 ( $ .01/Hr ) of the assessment rate. Each pay period, the employee withholding amount is calculated by multiplying the deduction rate of $ .01 times the actual number of hours each employee works. When you setup each new Employee Record, the employee's payroll deduction rate of .01 should be entered in the box to the right of the "Deduction for WBF".
Starting on July 1,2018, employers must withhold the Statewide Transit Tax (STT) from employee wages (one-tenth of 1 percent or .001). The TKT Payroll 1st Miscellaneous Deduction should be used for the Statewide Transit Tax. Select "Utilities" on the main menu bar, and click "Settings". Change the 1st Deduction Title in the lower left corner to "STT". Click the "Save Changes" button. Enter the deduction rate of .001 in the box to the right of "Deduction for STT" in each Employee Record (select "Employee Records" on the main menu bar, and click "Employee Changes"). After this setup, "ORSTT W/H-" will show on Forms W-2 in Box 14 with the dollar amount.
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