Oregon Taxes - Employee Setup

Per the Oregon Form W-4 Instructions, employees may choose to use the Federal Withholding (IRS W-4) status and allowances, but it is recommended that an employee uses the Oregon Withholding (Form OR-W-4) status and allowances to adequately withhold taxes.  

When filling out the Oregon Taxes - Employee Setup, there are are two options:

1. Yes, follow federal withholding settings

2. No, special adjustments are needed

Reference the option below to determine how taxes will be calculated.

1. Yes, follow federal withholding settings

Gusto will use the status and number of allowances entered in on the Federal Taxes section of the employee’s profile to calculate Oregon Withholding Taxes.

2. No, special adjustments are needed

The second option should be used if an employee wants to use the OR-W-4 form to calculate their withholding instead of the IRS W-4 form.

Using the OR-W-4 form, the fields Filing Status, Withholding Allowance, Additional Withholding, and OR-W-4 Exemption Code can be filled out accordingly.

• Important:  If the employee chooses the filing status “Do Not Withhold,” the employee must enter in an OR-W-4 exemption code and the Withholding Allowance and Additional Withholding fields are no longer applicable.

Once the information is entered, Gusto will automatically fill out the OR-W-4 form, but not Worksheet A, B, or C. The employee must fill these worksheets out on their end and retain as necessary.

Learn how to find a copy of your emplpyee's W-4s here.

Employer Filing Responsibility

Employers are required to send the Form OR-W-4s within 20 days in certain scenarios.