Setting up Oregon Statewide Transit Tax (STT) deduction

Version 3.1 by Peytience S on 2023/05/03 17:06

 The new OR STT, effective on all paychecks issued on or after July 1, 2018, is deducted from employee wages at a rate of 0.1% on all Oregon Wages.

Payment for the STT tax is made quarterly with a payment voucher and an annual reconciliation report is due each January for the year just ended. Both will be included in the Print & Mail Reports once they have been approved by Oregon for submission.

To set up the new Oregon STT deduction in your payroll program:

  • Go to Payroll Items and on the left side where you see your employee names click on "Employee List Settings " in red at the top of the list. 
  • To the left under "Deductions" in red click on the "NEW" box.
  • From the "Type" drop down menu choose "Training" -- Although technically it is not a training tax, choose Training for the Type as it will then show up on the payment voucher and annual reconciliation report for the Oregon STT
  • From the "Calculation Method" drop down menu  choose "Percent of Gross"
  • In the rate box below enter 0.1
  • If you post your payroll to Quickbooks choose the Liability Account under the "Accounting Links" to post the STT tax to
  • Click OK to create the OR STT deduction