Oregon Local Support: Metro SHS and Multnomah PFA
Understand Oregon's income taxes for supportive housing services and preschool access for children.
Metro Supportive Housing Services Tax (SHS)
Summary: Portland Metro implemented a new income tax in 2021 to raise money for supportive housing services for people experiencing homelessness or at risk of experiencing homelessness. This is a tax on high earners and has a wage threshold of $200,000. 1% of annualized earnings over $200,000 will automatically be withheld from employees.
Product support:
- Employees: Check will automatically withhold this tax for any employees that fall within the jurisdiction and whose annualized wages on any given payroll are above $200,000. In order to opt in/out or change their withholding amounts, employees must fill out this form - LINK (not supported by Check) - and provide it to their employer. Partners can then configure this tax in Console (more info below).
- Employers: Employers must register with Portland Revenue Online and will be assigned a 10-digit account number.
- Partners: This employee tax is configurable within Console:
- If the employee opts-in with a specific amount to deduct per pay period, set the “Metro SHS withholding amount, per pay period” withholding parameter in the employee’s “Withholdings” section.
- If the employee is a high earner and opts-out of withholding, you can exempt the “Metro Supportive Housing Services Income Tax” tax under the employee’s “Withholdings” section.
- If the employee will not earn over $200,000 no action is needed, we will not withhold this tax from employees whose annualized wages are less than $200,000.
Multnomah Preschool For All Tax (PFA)
Summary: Multnomah County implemented a new income tax in 2021 to give 3 and 4 year olds in Multnomah County access to free, high-quality, developmentally appropriate, culturally responsive preschool experiences. This is a tax on high earners and has wage thresholds of $200,000 and $400,000. 1.5% of annualized earnings over $200,000 and 3% of annualized earnings over $400,000 will automatically be withheld from employees.
Product support:
- Employees: Check will automatically withhold this tax for any employees that fall within the jurisdiction and whose annualized wages on any given payroll are above $200,000. In order to opt in/out or change their withholding amounts, employees must fill out this form - LINK (not supported by Check) - and provide it to their employer. Partners can then configure this tax in Console (more info below).
- Employers: Employers must register with Portland Revenue Online and will be assigned a 10-digit account number.
- Partners: This employee tax is configurable within Console:
- If the employee opts-in with a specific amount to deduct per pay period, set the “Multnomah PFA withholding amount, per pay period” withholding parameter in the employee’s “Withholdings” section.
- If the employee is a high earner and opts-out of withholding, you can exempt the “Multnomah County Preschool for All Income Tax” tax under the employee’s “Withholdings” section.
- If the employee will not earn over $200,000 no action is needed, we will not withhold this tax from employees whose annualized wages are less than $200,000.
Calculation
Keep in mind, both taxes will not be deducted at exactly $200,000 in taxable wages. The tax is set to be deducted after the standard deduction is applied at the Federal and State level. In general this means the deduction will be visible on a weekly payroll where the employee is paid greater than $4,110.48.
The breakdown is as follows:
- $200,000 + (Federal Standard Deduction $8,250) + (Oregon Standard Deduction $5,495) = $213,745
- $213,745/52 = $4,110.48
When an employee is paid over the $4,110.48 in an individual pay period, the above mentioned taxes will be deducted.
Last updated on September 30, 2024