Eugene Community Safety Payroll Tax

The Eugene City Council passed the Community Safety Payroll Tax Ordinance (No. 20616) in June 2019 to provide long-term funding for community safety services. The Community Safety Payroll Tax is expected to generate $23. 6 million annually to provide faster, more efficient safety responses, deter crime, connect people to services, engage and help at-risk youth, support more investigations and court services, and add jail beds to reduce capacity-based releases and hold those who commit crimes accountable. This tax is effective January 1, 2021.

More detailed information is available here.

Setup

There are two aspects to the calculation of this new tax:  employee withholding and employer liability.  To set up the proper tax calculation, you will need to select from the three subjectivity options below.  If no selection is made, the system will default to Subject - Based in Multiple Locations: 

  • Subject - Based in Multiple Locations:  This option should be selected by employers that have physical business locations within the city limits of Eugene, Oregon, and in other states and cities. This option allows only employees who work within Eugene city limits to be subject to this tax.
  • Subject - Based in Eugene Only:  This option should be selected by employers that have physical business locations ONLY within Eugene city limits. This option will allow all employees to be subject to this tax as it is assumed that all business locations are within Eugene city limits.
  • Not Subject:  This option should be selected by employers that have no physical business location within the Eugene city limits.

Per the city of Eugene ,  the employer portion of the tax will be assessed at the higher of the two required rate options based on whether you have more than 2 employees, until the end of the tax year.  Upon filing the 4th quarter return, employers will be able to make adjustments based on their average employee count for the year.

In order to request Zenefits to file and pay this tax on your behalf, you must register and provide a MUNIRevs Account Number and request to be set to Full Service for this jurisdiction.

Once set to Full Service, Zenefits will debit your account for any employee withholding calculated in payroll.  Zenefits will also debit for the employer portion of the tax as part of the normal quarter end process.

Calculation

Employers with 2 or less employees tax rate is .0015 on the first $100,000 of payroll.  Employers with more than 2 EEs tax rate is .0021.  The employer payroll tax is applied to total wages paid by an employer with a physical address within the Eugene city limits.

For an employee who makes more than $15 per hour, the tax is calculated at a rate of  .0044 of total wages. For an employee who makes between $12.01 and $15 per hour, the tax is calculated at a rate of .0030 of total wages. An employee who makes $12 per hour is exempt from the employee payroll tax.  Overtime wages are not used to determine the tax rate but are subject to the payroll tax.

Was this article helpful?  

Still need our help? Our support team is waiting to help you. Contact us