Did you survive year end and getting all those W2s into the waiting hands of your employees? If you answered "Yes!", then a big CONGRATULATIONS to you...and welcome to 2022! We have all hit the ground running and, believe it or not, we are well into February already. With April right around the corner, we thought now would be a good time to remind everyone about two new taxes that went into effect in Oregon and could require filing.
Supportive Housing Services (SHS) Tax
In May 2020, voters approved Measure 26-210, or the SHS tax, to help end homelessness across greater Portland (i.e. Clackamas, Multnomah, and Washington counties). The measure is a Metro program which uses personal and business income taxes, and it is made up of two parts:
- A 1% personal income tax applied on 100% of Oregon’s taxable income above $125,000 for individuals ($200,000 for joint filing). Please be sure to review the telecommuting rules, if applicable.
- A 1% business income tax on net income over $5 million.
Payroll withholding was not required for calendar year 2021. It is, however, required beginning in calendar year 2022. Employees may opt in or out of the withholding by providing this completed form. Withheld taxes are due at the same time as federal and state taxes. To determine whether a residence, workplace, and/or earned business income is within Metro’s jurisdiction, please reference Metro’s boundary lookup tool. Please visit Metro’s website for additional information on this tax as well as when, where, and how to pay it. The tax will expire in 2030 unless renewed by voters.
Preschool for All (PFA) Tax
In 2020, voters of Multnomah County approved a measure establishing a tuition-free preschool program known as Preschool for All. This program is funded through a personal income tax at the following rates:
- A 5% on taxable income over $125,000 for individuals ($200,000 for joint filers).
- An additional 1.5% on taxable income over $250,000 for individuals ($400,000 for joint filers).
Beginning January 1, 2022, employers with worksites in Multnomah County must provide payroll withholding for employees earning over $200,000 annually. As with the SHS-based individual tax, employees have the option to opt in or out by completing the Metro/MultCo OPT Form. Additional information for this program can be found on the Multnomah County website or in the Preschool For All Employer Handbook.
Washington Cares Act DELAYED!
On a related note for our neighbors in Washington, on January 27th, Governor Inslee signed House Bills 1732 and 1733, delaying and amending the Washington Cares Act or the Long-Term Care premium tax. The bill delays premium collection to July 1, 2023. Any premiums already collected from employees must be returned within 120-days of the original date of withholding. To get the latest updates on this program please reference the Washington Cares Fund website.
ACA Reporting Deadlines
Are you ready for ACA reporting in 2022? If your Company is an applicable large employer (ALE) with 50 full-time employees, or full-time equivalents, the deadline for employees to receive a 1095-B or 1095-C for the 2021 reporting year is March 2, 2022. The deadline to file all forms with the IRS is February 28, 2022, if you are filing with paper, and March 31, 2022 for electronic filing.
What can you do to make managing all of these items easier for your business? Why, invest in a Human Capital Management (HCM) solution of course! A cloud-based HCM system can help you manage all of your HR, time and labor management, and payroll needs in 2022 and beyond! If you're interested in making life easier, please reach out to us so we can introduce you to People Savvy HCM and all the business management efficiencies it offers you and your employees.