OAR 150-316-0234: “Withholding Statement” and “Exemption Certificate”

(1) For purposes of ORS 316.177 and ORS 316.182: (a) “Exemption certificate” means a form prescribed by the department containing an employee’s instruction to an employer certifying that the employee has no Oregon withholding requirement. (b) “Withholding statement” means a form prescribed by the department containing an employee’s instruction to an employer of the requested amount of income tax to withhold from an employee’s wages or other income. A withholding statement includes: (A) The Oregon Form OR-W-4; (B) An Oregon-only version of the 2019 or prior federal Form W-4; or (C) A 2019 or prior federal Form W-4. (2) Beginning January 1, 2020, changes made to an employee’s withholding statement or exemption certificate must be made using Form OR-W-4. (3) If an employee’s Oregon withholding is determined based upon the withholding statement described in (1)(b)(C), and the employee submits a 2020 or later version of the federal Form W-4 to the employer without also providing Form OR-W-4, the employer must withhold for Oregon at a rate of eight percent.