What is a Determination Letter and who receives a copy?
A Determination Letter is a document stating that DOR has changed the employee’s status and/or allowances and instructs the employer to withhold state tax based upon the change. Both the employee and the employer receive a Determination Letter. When you receive a Determination Letter from DOR, change the employee’s status and/or allowances for state withholding purposes only. This determination stays in effect indefinitely. If the employee submits a new W-4, send a copy to DOR for a redetermination. Continue to withhold based on the Determination Letter unless you receive a Redetermination Letter. Can an employee have a different withholding amount for state than they do for federal? Yes. The employee should indicate on the W-4 the desired number of state allowances and mark on the bottom of the form: “For Oregon Only.” What authority does the Department of Revenue have to request personal income, dependent and/or tax deduction information from an employee? Does this apply to an employ