New Metro and Multnomah County Tax Payment

What Employers Need to do Now for the New Metro and Multnomah County Taxes

As you are probably aware from our previous newsletters, Portland Metro District and Multnomah County have recently passed two new taxes: The Metro Supportive Housing Services (SHS) Tax and the Multnomah County Preschool For All (PFA) tax.  For details on these new taxes, please review our previous newsletters or contact our office with questions.  Here is what employers need to do now.

  1. Register your business for these taxes, if you do not already have a Business License Tax Account (BZT).  You will register at Portland Revenue Online.  You can sign up for a withholding accounting by scrolling down to the “Withholding” box and clicking on Register for a Withholding Account. You will register with your FEIN.
  2. If your company already has a BZT account, you can add a withholding account under the already established BZT account.
  3. While employers can technically file a return and pay without signing up for an account, it is highly recommended, to ensure smooth filing.
  4. Once you have your account IDs (one for each tax), please send them to your payroll provider.
  5. Provide your payroll provider a list of all employees that need to be set up with the new taxes. Please refer to our previously newsletters to review who is subject.

When are payments due?

  • For 2021, there will be no underpayment penalty for failure to withhold or pay quarterly estimated tax payments.  The full 2021 tax can be paid when tax returns are filed on April 15, 2022.  However, there are required withholding and quarterly payment of taxes, beginning January 1, 2022.  There will be penalties in 2022 for under-withholding or underpayment of quarterly estimated tax payments.
  • Your payroll provider will collect and pay these taxes for you.
  • Withheld taxes are due the same time as federal and state payroll (withholding) taxes.
  • An “opt in/opt out form” provided by the State can be used for your employees to choose to opt in or out of these taxes, as well as designate a different withholding amount, based on their tax situation.  The Multnomah County and Portland Metro District forms are attached and can also be found here and here.

We will continue to monitor this and provide further information as needed.  Please feel free to contact our office with any additional questions.

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