Please review the following information about the implementation of Oregon and Idaho payroll taxes in HRMS.
What is changing and why:
OFM has enhanced HRMS to adapt to our evolving workforce. In response to changes prompted by the pandemic, state agencies have increased numbers of remote workers to meet critical business needs. However, the state’s version of HRMS is not pre-configured to handle out-of-state (OOS) payroll requirements. Executive leadership from cabinet agencies prioritized custom configurations in HRMS to include Oregon and Idaho payroll tax calculations, aiming to reduce the burden of manual research and processing on agency staff. These two states represent 85% of our current out-of-state withholding wage type use. Until now, agencies have used manual calculations to manage their out of state workers. No further enhancements will be made in HRMS, as we are transitioning to the new ERP (Workday).
Who will be impacted by these changes to OOS:
All agencies that use HRMS for payroll and have employees living and/or working in Oregon or Idaho can begin using the new functionality with the September 25, 2024, pay date.
What’s happening and what’s upcoming:
To help you prepare for these changes, we are offering training sessions that will deep dive into the new, automated way of processing OOS payroll taxes. Register for either one of these sessions:
These training sessions will be recorded and then posted to the HRMS Support Hub.
Stay tuned for an email communication on Wednesday, September 11, 2024, with more information about the changes to HRMS and resources available to assist you with setting up your out-of-state employees with the new payroll tax functionality.
