Eugene – Community Safety Payroll Tax – What You Need to Know

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I am sure most of us are happy that 2020 is finally over with and we are moving on to a new year, 2021. However, let’s not celebrate too early. With the new year comes new taxes if you are a business owner located in Eugene or are an employee of a business owner located in Eugene.

Back in 2019, the city of Eugene passed a local payroll tax that went into effect as of 1/1/2021. The purpose of the payroll tax is to provide long-term funding for community safety services. Below is a list of five things you need to know about the tax.

  1. The tax applies to both employees and employers who have a physical business location in the city of Eugene.
    • The employer portion of the tax is .21% of total wages paid by an employer.
    • The employee portion of the tax varies between .30% and .44% depending on amount of wages. The tax can be 0% for some employees.
  2. The tax is effective as of 1/1/2021 and is required to be paid to the city on a quarterly basis.
  3. All employers who pay wages to employees and self-employed persons with a physical address in the Eugene city limits must register and file with the city.  Register here: https://eugene.munirevs.com/
  4. The tax applies to employees who work outside of the city but work for a business that is physically located in the city of Eugene.  There are exemptions for multi-office business that have offices both inside and outside of the city.
  5. There are resources available if you have questions.

If you have any questions about this new payroll tax please talked to you payroll provider or contact Michelle Hanks at Isler CPA.

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