For tax years beginning on or after January 1, 1992, “wages” includes elective payments into a Simplified Employee Pension, IRC 3121(a)(5)(C) or an annuity contract, IRC 3121(a)(5)(D). Contributions, IRC 3121(v)(1)(A); to a 401k retirement plan; employee contributions under IRC 3121(v)(3)(A) and employer contributions under IRC 3121(a)(5)(E), to a government deferred compensation plan including contributions “picked up” by a governmental unit, IRC 3121(v)(1)(B) (and contributions to a nonqualified plan, a Section 457 plan, or a 403(b) annuity).

Example: Linda works for a firm subject to Lane Transit District Payroll Tax. She earned $30,000 wages for tax year 1992. She put $3,000 into her 401k retirement plan. Linda’s employer also put $1,000 in her 401k. Linda’s “wages,” for the purpose of determining the LTD payroll tax, is $31,000.

Statutory/Other Authority

ORS 305.100

Statutes/Other Implemented

ORS 267.380

History

Renumbered from 150-267.380(4), REV 16-2016, f. 8-10-16, cert. ef. 9-1-16
RD 4-1991, f. 12-30-91, cert. ef. 12-31-91