Form Tm And Instructions Draft - Self-Employment Tax

2011 Tri-County Metropolitan Transportation District

Form TM and Instructions

TriMet Self-Employment Tax

These instructions are not a complete statement of laws and rules that apply to the Tri-County

Metropolitan Transportation District self-employment tax. For more information, visit

People who must pay the self-employment tax include:

New information

• Self-employed individuals, sole proprietors, independent

For 2011, the TriMet return and tax is due on or before April

contractors, members of a partnership, and persons who have

17, 2012. The change is due to a Federal holiday. Partnerships

net self-employment earnings greater than $400 from doing

with a fiscal year still must file on a calendar year basis.

business or providing services within the TriMet District.

Health Insurance Deduction: Beginning with tax year 2011,

• Real estate salespeople. Federal laws generally treat real

the TriMet Transit District adopted the federal deduction for

estate salespeople as self-employed. This includes those

the individual health insurance paid in calculating your self-

who provide services to real estate brokers under contract.

employed earnings. Do not modify your net self-employed

This means that commissions on sales are subject to the

earnings because the deduction is included in line 3 of your

TriMet self-employment tax.

federal Schedule SE.

• Fiscal year filers. If you are a fiscal year filer and your tax

TriMet now has its own payment voucher: Please include

year begins in 2011, you should file on a 2011 tax return.

Form TM-V with your payment.

Partnerships

New tax rate: Beginning January 1, 2011, the tax rate has

increased to 0.006918.

Partnerships are not subject to the TriMet self-employment

tax.

Important reminders

The individual self-employed members of the partnership

are responsible for filing and paying the tax. However, a

For tax years beginning on or after July 1, 2005:

partnership may choose to file one transit self-employment

Self-employment income is apportioned to Oregon using a 100

tax return and pay the tax for all of its individual partners.

percent sales factor unless you meet one of these exceptions.

See “Partnership election” instructions.

• A taxpayer primarily engaged in utilities or telecom-

Exemptions

munications may elect to use the double-weighted sales

• Ministers—Compensation received by a minister or mem-

factor formula.

ber of a religious order when performing religious services

is not subject to this tax. However, compensation received

What is the TriMet self-employment tax?

for performing religious services as an independent con-

tractor has been and remains subject to this tax.

The TriMet tax helps fund mass transportation in the TriMet

District. This tax is applied to self-employment earnings of

• Insurance agents—Applies only to insurance-related

individuals doing business or providing services in the dis-

income. Noninsurance-related self-employment activities

trict. This includes portions of Multnomah, Clackamas, and

are subject to this tax (ORS 731.840).

Washington counties. The Oregon Department of Revenue

• C and S corporation distributions are not subject to this

collects the tax for TriMet.

tax. However, all employers who pay wages for services

A list of ZIP codes included in the district boundary is on

performed in the district must pay a transit payroll tax.

page 4. For more information, call TriMet at 503-962-6466, or

This includes corporation officers who receive compensa-

visit

tion for services performed. For more information about

payroll transit tax, call 503-945-8091.

The tax rate is 0.006918 (0.6918 of 1 percent).

How to file

Who must file and pay this tax?

Complete Form TM, TriMet Self-Employment Tax Return and

Individuals

include the following:

Anyone who has self-employment earnings from business

• Federal Schedule SE.

or service activities carried on in the TriMet District must

• Form TSE-AP if you are apportioning.

pay this tax.

150-555-001 (Rev. 12-11)

Form Tm And Instructions Draft - Self-Employment Tax - 2011

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