Washington business doing remote work in Oregon

Forum|Forum|4 years ago
February 22, 2022
1 reply
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I own a Washington business that does both physical and remote work with clients in Oregon. Does my business need to pay Oregon income tax on the remote work?

Best answer by ptronus31

No! If you do not travel to Oregon, and all of the work is done remotely, you do not have to pay any taxes or file any tax return for Oregon.

I finally got ahold of an expert at the Department of Revenue in Salem, Oregon. She stated that any work physically done in Oregon is subject to Oregon income tax. Remote work into Oregon from outside of Oregon is not.

Thank you !

MaryK4

Level 15

To clarify, the remote work in done in Washington for Oregon clients? @ptronus31

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ptronus31Author

Level 2

Yes, I work on computers and remote into Oregon client's computers while they are in their homes in Oregon from my home in Washington. My business is a Washington LLC and I am the only employee and the only office for the business is my home in Washington. The business is registered in Washington and also as a "foreign" (out of state) business in Oregon.

Vanessa A

Level 15

Yes, you will need to file a Non Resident tax return in Oregon as well as a resident return in Washington. You stated that you are physically doing work in Oregon as well, so yes, you will need to pay taxes on the income you earn while physically working in Oregon.

Also, depending on how you chose that your LLC be treated (S-Corp or disregarded entity), you may be responsible for business tax returns in Oregon as well. If you did not elect to be treated as an S-Corp, then you would be a disregarded entity and would not need to file any additional returns with the state of Oregon.

If you chose S-Corp status then you will need to file the OR-20-S as well as a personal non resident return for Oregon.

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