Or. Admin. Code § 471-070-1480

Current through Register Vol. 63, No. 12, December 1, 2024

Section 471-070-1480 - Benefits: Federal and State Voluntary Tax Withholding

(1) A claimant receiving Paid Family and Medical Leave Insurance (PFMLI) benefits can elect to voluntarily have federal or state personal income tax withholding. To elect voluntary withholding, the claimant must notify the department on an approved method.

(2) When the department receives the claimant's notification requesting withholding, the department will:

(a) Withhold at a rate of 10 percent for federal personal income taxes pursuant to IRC section 3402 (p) and applicable regulations for future benefit payments issued.

(b) Withhold at a rate of eight percent for Oregon personal income taxes for future benefit payments issued.

(3) The amount of voluntary withholding from a claimant benefit payment will be rounded to the nearest whole cent. When rounding, any number with the last figure five or greater is rounded up, while numbers less than five are rounded down.

(4) The amount of voluntarily withholding from a claimant benefit payment will be held in trust and:

(a) Transferred to the Internal Revenue Service in the time and manner required for withholdings under IRC section 3402.

(b) Transferred to the Department of Revenue in the time and manner provided by the Department of Revenue under ORS chapter 316 and rule.

(5) The election will remain in effect until the claimant submits to the department an authorization for tax withholding form instructing the department to stop withholding. The withholding will stop with the next benefit payment issued, whenever administratively feasible, after the instruction to stop is received by the department.

(6) The PFMLI program shall provide information to a claimant about the total federal and state personal income tax withheld for the calendar year from PFMLI benefit payments on the Form 1099 no later than January 31st following the calendar year.

Or. Admin. Code § 471-070-1480

ED 5-2023, adopt filed 07/31/2023, effective 8/1/2023

Statutory/Other Authority: ORS 657B.340

Statutes/Other Implemented: ORS 657B.050