What is the Special Payroll Tax Offset? What is it used for?
Answer Special Payroll Tax Offsets are authorized by the Oregon Legislature and collected using the unemployment insurance tax system. They are included as part of the UI Tax rate, but the money is not deposited in the Unemployment Insurance Trust Fund. For that reason the money cannot be certified as “contributions paid to the state” when preparing federal FUTA Form 940. Special Payroll Tax Offsets are used to fund various state programs.
