Don't HR Alone #20 - Payroll Tax Updates for July 1, and Social Media Recruting

June 19, 2017



Philadelphia, Pennsylvania reduces wage and net profits tax — PENNSYLVANIA — Withholding and Reporting


A Philadelphia ordinance amends the city’s wage and net profits tax by decreasing rates for residents and nonresidents. Specifically, for residents the tax on salaries, wages, commissions and other compensation is decreased from 3.9004% to 3.8907% beginning July 1, 2017. For nonresidents, the tax is reduced from 3.4741% to 3.4654%. Further, for residents the tax on net profits earned in businesses, professions or other activities is reduced from 3.9004% to 3.8907% for January 1, 2017 and thereafter. For nonresidents, the tax is reduced from 3.4741% to 3.4654%.


The wage and net profits tax is imposed on Philadelphia residents in addition to the 1.5% Pennsylvania Intergovernmental Cooperation Authority tax, which is included in the resident rates above. (Philadelphia Bill No. 170198, Philadelphia City Council, effective June 14, 2017.)


Oregon amends interest, refund computations — OREGON — Interest Rates


For purposes of taxes administered by the Oregon Department of Revenue (DOR), the state has enacted legislation amending the method of computing interest due on tax deficiencies and refunds of tax in order to replace the current rate, based on month or partial month, with an annual rate computed daily. The change is applicable to tax deficiencies or refunds owing as of January 1, 2018.


Specifically, the current interest rate of five-sixths of one percent per month, or a fraction thereof, for deficiencies is replaced by a rate of 10% per year computed on a daily basis. For refunds ordered by the tax court or the Oregon Supreme Court or an assessment issued by the DOR the interest rate will be 4% greater than the annual interest rate. (Ch. 278 (S.B. 33), Laws 2017, effective on the 91st day after adjournment si