Bill Text: OR HB2574 | 2011 | Regular Session | Introduced

Oregon House Bill 2574 (Prior Session Legislation)

Introduced

Bill Title: Relating to withholding of income tax; prescribing an effective date.

Sponsorship: Unknown

Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2574 Detail]

Download: Oregon-2011-HB2574-Introduced.html



     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 3126

                         House Bill 2574

Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of House Interim Committee on
  Revenue)

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Requires employer to withhold at least ___ percent of employee
wages, regardless of withholding exemptions claimed by employee.
Applies to wages paid on or after January 1, 2012.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to withholding of income tax; creating new provisions;
  amending ORS 316.167; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 316.167 is amended to read:
  316.167. (1) Every employer at the time of the payment of wages
to any employee shall deduct and retain from such wages an amount
determined, at the employer's election, either (a) by a '
percentage method' withholding table or (b) by 'wage bracket '
withholding tables, prepared and furnished under the rules and
regulations of the Department of Revenue. However, in the case of
wages paid to an employee whose services to the employer consist
solely of labor in connection with the planting, cultivating or
harvesting of seasonal agricultural crops, the employer may elect
to withhold two percent of the total wages paid without regard to
any withholding exemptions.
  (2) Except in the case of an agricultural employee, the amount
withheld shall be computed on the basis of the total amount of
the wages and the number of withholding exemptions claimed by the
employee, without deduction for any amount withheld.
   { +  (3) Notwithstanding subsections (1) and (2) of this
section, an employer shall withhold an amount equal to at least
___ percent of the total wages paid to an employee without regard
to any withholding exemptions claimed by the employee. + }
    { - (3) - }   { + (4) + } If a lender, surety or other person
who supplies funds to or for the account of an employer for the
purpose of paying wages of the employees of such employer has
actual notice or knowledge that such employer does not intend to
or will not be able to make timely payment or deposit of the tax
required to be deducted and withheld, such lender, surety or
other person shall be liable to the State of Oregon in a sum
equal to the taxes together with interest which are not timely
paid over to the department. Such liability shall be limited to
the principal amount supplied by such lender, surety or other
person, and any amounts so paid to the department shall be
credited against the liability of the employer.
    { - (4) - }   { + (5) + } With the approval of the Oregon
Department of Administrative Services, the department may enter
into contracts with banking institutions including but not
limited to Federal Reserve Banks, incorporated banks, trust
companies, domestic building and loan associations, savings and
loan associations or credit unions authorizing them to receive as
financial agents of the department any tax required to be
withheld and paid to the department.
  SECTION 2.  { + The amendments to ORS 316.167 by section 1 of
this 2011 Act apply to wages paid on or after January 1,
2012. + }
  SECTION 3.  { + This 2011 Act takes effect on the 91st day
after the date on which the 2011 session of the Seventy-sixth
Legislative Assembly adjourns sine die. + }
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