![]() Resident taxpayers are taxed on their worldwide income, with the possibility of relief of double taxation if tax is due in other countries as well, while non-resident taxpayers are only taxed for sourced income in the Netherlands. ![]() Employers and employees should reconsider the employee’s residency status in the Netherlands if the facts and circumstances have changed due to remote working.įor example, a person’s residency status determines which type of Dutch personal income tax return should be filed. It is possible that an employee’s residency changes as a result of remote working, as residency in the Netherlands is determined based on all the relevant facts and circumstances. In this article, BDO addresses the impact remote working can have on expats from an income / wage tax and social security perspective. So, for quite some time now, employees have been working remotely. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.Since the start of the corona pandemic, employees in the Netherlands are expected to work from home as much as possible. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.Ĭopyright © 1996 – 2023, Ernst & Young LLPĪll rights reserved. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. Kristie Lowery ( Kenneth Hausser ( Debera Salam ( Payroll News Flash.Workforce Tax Services - Employment Tax Advisory Services Employers are required to withhold Oregon state income tax at a flat rate of 8% when employees have failed to previously submit Form W-4 or Form OR-W-4.įor more information on withholding and paying Oregon income tax and the state/local transit tax, see the Oregon Employer's Guide.įor additional information concerning this Alert, please contact: Note that employees subject to Oregon income tax withholding who are hired on or after Januare required to submit Form OR-W-4. Single/married filing separately $2,420.The Oregon standard deduction amounts for tax year 2022 are: Nonresident employees with wages greater than their standard deduction amount are required to file an Oregon nonresident return. Even if Oregon income tax is not withheld from the employee's wages, they must still be reported as Oregon-source income in Box 16 of the Form W-2. Employers must withhold Oregon income tax from all wages earned by nonresident employees for services performed in Oregon, unless the employee's earnings for the year are expected to be less than the standard deduction amount for the applicable filing status. Oregon law does not require withholding from wages paid to Oregon residents if there are no employees working in the state however, employers are asked to register and courtesy withhold for these employees. An exception to this withholding requirement applies if the employer can demonstrate that the employee, will receive $300 or less in wages from the employer in a calendar year. Employers must withhold Oregon state income tax from all wages paid to Oregon resident employees working in Oregon (including teleworkers), regardless of whether they work out of the employer's physical location in Oregon or work/telecommute from their residence. Importantly, there is no exception to the rules contained in Oregon Administrative Rule (OAR) 15 in consideration of the COVID-19 emergency. The Oregon Department of Revenue has issued guidance to assist employers in understanding the income tax withholding requirements that apply when employees are working remotely within the state. Oregon confirms state income tax rules for wages paid to remote workers
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