Oregon Quarterly (OQ)-Subject Wages and Prepayments

Unemployment Insurance (UI)

This section will not be available if you chose 'I do not need to file a Form 132,' on the 'Form 132-Entry Method Selection' screen.

This section computes and shows the tax due for Unemployment Insurance based on the information keyed in "Form 132 - Entry". Lines 1, 3, 4, and 5 pre-fill and are not modifiable from this screen.

Excess Wages in Line 2 is computed based on the information keyed in "Form 132 - Entry" for the current and any previous quarters in the current calendar year. This section can be altered if there are special circumstances. Any prepaid tax amounts should be keyed on Line 6 and Line 7 calculates automatically.

Excess Wages

Excess wages are wages above the taxable wage base for the year, per employee. The 'Excess Wages' box pre-fills based on the information keyed in Form 132 for current and previous quarters in the current year. The pre-filled amount can be changed if necessary. If any changes are made, click "Calculate" on the 'Oregon Quarterly - Tax Information' screen.

This box cannot be altered by reimbursing employers and Local Government Employers Benefit Trust Fund (LGEBTF). These types of employers cannot claim the excess wage credit.

Oregon Tax Prepaid this Quarter

Enter the amount of unemployment insurance tax prepaid or credits used this quarter. If there was none, enter "0" in this box. Include any credit amount that may have been overpaid in previous quarters where no refund was requested or issued.

State Withholding

This section will not be available if you chose, 'I'm not subject to Oregon State Withholding,' on the 'Withholding Frequency' screen.

Enter total wages subject to income tax (salaries, commissions, and bonuses), paid to Oregon employees this quarter.

•  If you are reporting withholding on pension or annuity distributions, enter the amount of distributions with Oregon withholding.
• This amount does not need to match the subject wages reported for unemployment insurance (UI).
• Enter "0" if you had no subject payroll this quarter.

If you chose a withholding frequency of more than quarterly, the "Tax" box will be populated with the total withholding amount keyed either on the "Schedule B" or "Monthly Withholding" screens. If the "Tax" box is blank, enter the total Oregon income tax withheld for the quarter or go back and fill out Schedule B or monthly amounts if needed. Any prepaid amounts should be keyed in the "Oregon Tax Prepaid this Quarter" box (if none, enter "0" in this box). The "Total Tax Due" box calculates automatically.

Subject Wages

Examples of taxable wages include:

•  Salaries, commissions, bonuses, wages, tips, fees, prizes, separation allowances, guaranteed wage payments, and vacation and holiday pay.
• Payments by a corporation, including S corporations and professional corporations, to a corporate officer for services, including guaranteed wage payments for services.
• Wages paid when an employer-employee relationship exists between a husband and wife, domestic partners, or a parent and child.

Oregon withholding law exempts wages paid for certain kinds of services, labor, employee allowances for the benefit of employer, and reimbursed employee business expenses. For additional information, go to the Employer's Guide to Doing Business in Oregon.

Tri-Met and Lane Transit Districts

Transit payroll (excise) tax is imposed on most employers who pay wages for services performed in the TriMet or Lane Transit Districts. They provide revenue for mass transit (ORS Chapter 267).

Unless exempt (see below), employers who have resident and/or nonresident employees working in the TriMet or Lane Transit districts must register and file with the Department of Revenue. If an employer does not have employees working within the transit district boundaries, the payroll is not subject to the transit tax. For a complete list of ZIP codes in each transit district, please visit

Wages Subject to Transit Taxes

Wages means all salaries, commissions, bonuses, fees, or other items of value paid to a person for services performed within a transit district (ORS 267.380). Transit district wages also include:

•  Contributions to a Simplified Employee Pension (SEP) made at the election of the employee.
• Payments for the purchase of IRC Section 403(b) annuities under salary-reduction agreements.
• Contributions to 401(k) retirement plans chosen by the employee, including employer-matched contributions.
• Pick-up payments to governmental retirement plans under salary-reduction agreements.
• Amount deferred under governmental deferred compensation plans.

Exempt Payroll for Transit Districts

The following are exempt from TriMet and Lane Transit excise taxes:

• Federal government units
• Federal credit unions
• Public school districts
• Organizations, except hospitals, that qualify for exemption under ORS 267.380(1)(b)
• All foreign insurers
• 501(c)(3) nonprofit and tax-exempt institutions (except hospitals)
• Insurance adjusters, agents, and agencies and their office support staff, are exempt from transit tax if the business income is from insurance-related activity. Noninsurance income is taxable (ORS 731.840).
• Domestic service in a private home
• Cafeteria plans
• Casual labor
• Services performed outside the district
• Seamen who are exempt from garnishment
• Employee trusts that are exempt from taxation
• Tips paid by customers to employees
• Wages paid to employees whose labor is solely connected to planting, cultivating, or harvesting seasonal agricultural crops

 These apply only to the TriMet district:

•  Public education districts
• Public special service and utility districts
• Port authorities
• Fire districts
• City, county, and other local government units