Is your business subject to Transit Payroll Tax

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Six Local Transit Payroll Taxes: Not Just For Businesses Residing in Those Districts

by Diane MCBride

Great Work!

In the many years of working in the payroll field in the Salem area, there is one comment I hear from a lot of companies: they didn’t realize they may be subject to transit taxes since their business is not located in that district.

It is not just about the location of the business, but is also about performing work in the district. If you are a business not in one of those districts but occasionally perform work in those areas, or have employees who live in one of the districts and work remotely from home, you may be subject to the tax.

Lane and Trimet are the more common transit districts you may be aware of, but did you know there are four others? All six have similar rules, and it would be a good idea to read through the rules for the district that pertains to you so you can be aware of what to include or what may be exempt. For example, if you have employees working in multiple districts or maybe only part of the time in one district, you will need to prorate their payroll dollars according to the areas they worked so you avoid paying more than required.

Lane and Trimet are reported on the Oregon OQ quarterly report and the others have their own form and rules for payment. Below is a list of all six areas along with a link to learn more about each including a boundary map and current rates:

Lane Transit
South Clackamas