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1. Am I required to file a return or pay the tax as an employee?

No. Your employer is required to withhold and remit the tax on your behalf. You do not have any filing requirements and the tax will be submitted by your employer.

2. When will I start seeing the tax withheld from my paycheck?

The Community Safety Payroll tax will be effective for pay periods beginning on or after January 1, 2021. If the pay period began prior to January 1, 2021, you are not subject to the tax for that pay period.

3. What is my tax rate?

Your tax rate is determined by the gross wages received for a pay period using the tax rate charts. This includes all compensation such as hourly wages, salary, tips, bonuses, and commissions. The applicable tax rate is them applied to your taxable wages, after pre-tax deductions.

4. Am I subject to the employee payroll tax if I work from my home outside the City limits, but my employer is in the City?

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.

5. My employer is located outside of Eugene, but I often travel to Eugene to meet with clients. Am I subject to the tax?

No. 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 the location of clients. Client locations do not qualify as a “business location” for the purposes of the employee payroll tax.

• Example - Maggie works for a tax preparation service located in Junction City. She often comes to Eugene to meet with clients at their homes. Maggie’s wages are not subject to the employee payroll tax because her employer is not located in City limits.
• Example – Edward runs a landscaping business in Springfield and provides services for various clients in Eugene. His employees are not subject to the employee payroll tax.
• Example – Laura has a catering business in the Eugene city limits. She provides catering services for clients throughout Lane and Douglas counties. Her employees are subject to the payroll tax, even for those wages earned while working at client locations outside the City limits.

6. I work for a company that has project sites located in the City, but my employer is located outside of the City. Am I subject to the tax for my time at those sites?

No. 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 the location of temporary job sites. Temporary job sites are not treated “business location” for the purposes of the employee payroll tax.

 

• Example – CC Electric is located in Junction City. They are contracted by a client in Eugene to do all the electrical work on a new building in the City limits. The CC Electric employees working in the City limits are not subject to the employee payroll tax since the employer is located in Junction City.
• Example – AA industries is a construction company located in the Eugene city limits. Employees are sent out in teams to various construction sites located both in and out of the City limits. All the employee wages are subject to the employee payroll tax, regardless of where the work if performed, since the employer is located in the City limits.
• Example – BB Connect is a telecommunications company located in Portland that is contracted by the City to install a telecommunication tower. The BB connect employees working in the City limits are not subject to the employee payroll tax since the employer is located in Portland.