If you employed two or less employees during the year, the first $100,000 of annual wages paid or self-employment earnings are taxed at a reduced rate of .0015
“Two or less employees” will be determined using average annual employment. This will be a count of all active employees subject to the tax (including all full-time, part-time, temporary, and seasonal employees) for each month, totaled for the year, and divided by 12. You will only count active employees that worked for a business location in the Eugene city limits.
‘Employees’ does not include temporary employees contracted through professional employment organizations or staffing services.
If filing a final return prior to the 4th quarter, you can apply the reduced tax rate if you qualify. You will count all the active employees subject to the tax each month, totaled for the year, and divide by the number of months in operation.
- Example - Liam ceased his business in May. He will count the employees for each month from January through May, total the amount for those months, and divide by 5.