OAR 150-316-0315: Alternative Withholding Payment Method for Employers to Avoid Undue Burden

(1) ORS 316.191 allows alternate methods for making withholding payments when an undue burden is caused by the present withholding method. The following are two examples of “undue burden:” (a) The employer is required to make Oregon tax withholding payments to the state of Oregon based on its nationwide payroll more often than it would based on payroll for its employees working in the state of Oregon. (b) Oregon resident performs services outside the state and the employer is asked to register and withhold, voluntarily, as a convenience to the employee and the state of Oregon. (2) Employers who believe that federal withholding methods create an undue burden for them which is not shared by most other similar employers, may request a different method of withholding tax payments by writing to the Payroll Tax Program, Department of Revenue, 955 Center Street, NE, Salem, OR 97310. The request shall contain the following information: Business name of employer; Oregon Business Identification Number (BIN), nature of burden; remedy requested; and proposed effective date of modified withholding method. (3) An example for an alternate method indicated in (a) above would be to base the out-of-state employer’s withholding method on their Oregon payroll only. (4) Only those employers whose withholding accounts are current may request an alternative withholding method. No alternative withholding method shall be used before the Department of Revenue has approved the request in writing and has designated the effective date of the change.