Yes. The payroll tax is applied to wages paid to an employee working for an employer located in the Eugene city limits. The key factor is the physical location of the employer, not where the work is performed or where the employee lives.
Telecommuters (or remote workers) are subject to the employee tax to the extent that they work for an employer located in the Eugene city limits, even though the work may be performed outside the City limits.
- Example - Alicia works for an employer located in the City three days a week and works from her home in Springfield two days a week. The employee payroll tax applies to all of Alicia’s wages including her wages earned while working from home.
- Example – Terrance works for an IT security company located in Indiana. He telecommutes from his home in Eugene and meets with various clients located in Eugene. Terrance is not subject to the employee payroll tax since his employer is in Indiana.
- Example – Sam works for an employer in Roseburg doing accounting work. He does all his work remotely from home in Eugene. Sam’s wages are exempt from the payroll tax since his employer is in Roseburg, even though he lives and works in Eugene.