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Homecare Workers Procedures Manual

J. Income Tax Withholding/W-4 Form

  1. Additional Amounts Requested to be withheld from Taxes
  2. Completing Sections 8 and 10 of W-4 Form
  3. “Employer” – Completing Employer Field on W-4 form
  4. Exempt Status Renewal
  5. False Information submitted on W-4 form
  6. Forwarding Copies of W-4 to Oregon Department of Revenue
  7. Forwarding Copies of W-4 to Internal Revenue Service (IRS)
  8. Help completing the W-4 form
  9. Incomplete W-4 forms
  10. Keeping/Retaining W-4 forms in the Provider File
  11. Mandatory Completion of Form
  12. Ordering W-4 Forms
  13. Processing the W-4 form
  14. Refusal or failure to send in W-4 form
  15. Separate withholding amounts for state and federal W-4 forms
  16. Tax Advice
  17. W-5 form – Earned Income Credit Advance
  18. W-5 form – Processing the Earned Income Credit Advance
  19. Transmittals

1. Additional Amounts Requested to be Withheld from Taxes

The Homecare Worker can request to have additional amounts withheld from taxes and can indicate the amount on the W-4 form. This information can be entered on the Financial/Tax screen in the Provider Maintenance section of Oregon ACCESS.

2. Completing Sections 8 and 10 of W-4 Form

Complete section 8 and 10 at the bottom of the W-4 form with “SPD Provider Payments Unit” as the employer “93-0600527” as the employer ID Number. The employer address is:

SPD Provider Payments Unit
P O Box 14960
Salem, OR 97309-5045

3. “Employer” – Completing Employer Field on W-4 form

For the purpose of the W-4, the SPD Provider Payment Unit is considered the employer and the Homecare Worker is considered the employee. The employer ID number is 93-0600527. See “Completing Sections 8 and 10” for the employer address.

4. Exempt Status Renewal

The W-4 form indicates how long the current exemption will remain active prior to expiration. For example, in 2005, the W-4 form indicated that the 2005 exemption expired on 02-16-06. A new W-4 form must be filed every year before the current exemption expires or else the Homecare Workers information will be changed to 0 (zero) withholdings and a marital status of single. This is the highest rate of withholding. Exempt Status can be entered on the Financial/Tax screen in the Provider Maintenance section of Oregon ACCESS.

5. False Information submitted on W-4 form

The local SPD/AAA office does not have to accept information on the W-4 form they know to be false. If, for example, a married HCW submits a form claiming single status on their taxes, you should return the form and ask the Homecare Worker to complete the form correctly.

6. Forwarding Copies of W-4 to Oregon Department of Revenue

Local SPD/AAA offices must send copies of W-4 forms to the Oregon
Department of Revenue in the following circumstances:

7. Forwarding Copies of W-4 to Internal Revenue Service (IRS)

You do not need to send copies of W-4 forms to the federal Internal Revenue Service (IRS) unless requested by the IRS. Due to an IRS rule change, published April 14, 2005, employers are no longer required to send W-4 forms to the IRS unless the IRS requests W-4 forms for specific HCWs.

8. Help completing the W-4 form

The HCW can contact a tax expert or the Internal Revenue Service (IRS) at 1(800)829-1040, or the Department of Revenue, at 1(800)356-4222. The IRS instructions for filling out a W-4 form can be found on the reverse side of the form. Local SPD/AA offices should not assist HCWs in completing W-4 forms, since any assistance may be construed as giving tax advice.

9. Incomplete W-4 forms

If the Homecare Worker returns a W-4 form with certain fields left blank, or that is missing a signature, you can return the form to the Homecare Worker. The form is not valid if the signature is missing. For minor pieces of missing information, you could choose to call the Homecare Worker to clarify what they wanted on the form. You could complete and add your initials next to the information you added.

10. Keeping/Retaining W-4 forms in the Provider File

Per tax law, W-4s need to be kept on file in the provider file for at least four years.

11. Mandatory Completion of Form

Tax withholding is not voluntary. SEIU Local 503, OPEU is the union that represents HCWs in the bargaining unit. The union entered into an agreement with the Home Care Commission to have DHS withhold income taxes for Homecare Workers. Tax withholding was something that Homecare union members wanted and negotiated.

12. Ordering W-4 Forms

The W-4 form is an Internal Revenue Service (IRS) form that is updated annually. Therefore, the form cannot be ordered through the DHS forms website. Local offices will need to maintain their own supply of W-4 forms. The form can be downloaded from the IRS’ website, photocopies can be made, or a supply of blank copies can be ordered from the IRS by calling 1-800-829-4933. If you contact the IRS for blank copies of the form, they may ask for your name, the number of forms needed and the Employer ID number. For purposes of the W-4, the employer is SPD Provider Payments Unit and the Employer ID Number (EIN) is 93-0600527.

13. Processing the W-4 form

When a W-4 form is received in the local SPD/AAA office, the local office must enter the new information into the Financial/Tax screen on Oregon ACCESS’ Provider Maintenance section. Do not forward W-4 forms to SPD central office. The W-4 form is kept in the provider file.

14. Refusal or failure to send in W-4 form

The W-4 form is included in the enrollment packet and is required to be completed for enrollment. For those Homecare Workers who were already enrolled before the Department began income tax withholding on July 1, 2005, taxes were withheld at the highest rate (single and zero withholdings) if the HCW did not complete and return the form. More than one reminder letter was sent to each provider reminding the HCW to complete the form or withholdings would be set at zero withholdings and single status.

15. Separate withholding amounts for state and federal W-4 forms

If a Homecare Worker wants to file a different number of withholdings for their state or federal taxes, he or she can complete two W-4 forms and write “state” at the top of one form and “federal” on the top of the other form in pen. Those two different amounts can be entered in on the Financial/Tax screen in the Provider Maintenance section of Oregon ACCESS.

16. Tax Advice

SPD/AAA offices should not provide any tax advice to Homecare Workers. Local SPD/AAA offices may refer the Homecare Worker to the IRS at 1-800-829-1040 or suggest they contact tax experts or web sites that may help answer their questions.

17. W-5 form – Earned Income Credit Advance

The Earned Income Credit (EIC) is a tax credit for certain low income workers. It reduces the tax the worker owes. When the worker files their income tax returns for the year, the EIC may even result in giving the worker a refund/payment above the amount that was withheld. The Advance EIC enables HCWs who qualify to start getting part of the credit (an advance) with their pay now, instead of waiting until they file their 2005 tax return in 2006. This information can be entered on the Financial/Tax screen in the Provider Maintenance section of Oregon ACCESS.

18. W-5 form – Processing the Earned Income Credit

If you are contacted by a Homecare Worker requesting an EIC monthly payment, instruct them to provide a completed W-5 form to the local office. DHS will not be providing W-5 forms or additional information on the Earned Income Credit Advance. If a completed form is turned in to the local SPD/AAA office, the local office will need to enter the information into the Financial/Tax screen in the Provider Maintenance section of Oregon ACCESS.

19. Transmittals


SPD-AR-06-006

01/17/06

Action: New 2006 W-4 forms for Homecare Workers claiming exempt status on income tax withholding

SPD-PT-05-016

06/17/05

Policy: Homecare Workers: Oregon Department of Revenue Requirements for processing W-4s

SPD-PT-05-014

06/13/05

Policy: Homecare Workers: Oregon Department of Revenue Requirements for processing W-4s

SPD-IM-05-034

05/20/05

Info: Homecare Workers: W4 forms and second Income Tax Witholding notice

SPD-PT-05-008

05/10/05

Policy: Income Tax Withholding for Homecare Workers and W-4 forms

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Oregon Department of Human Services
500 Summer St. NE E02, Salem, OR 97301-1073
Phone: (503) 945-5811
Toll-free: (800) 282-8096 (V/TTY)