Withholding Taxes: Oklahoma

Federal law and guidance on this subject should be reviewed together with this section.

Authors: Alan L. Rupe and Aaron R. Sauerwein, Kutak Rock LLP

Summary

• Wages paid to Oklahoma residents who work in and outside the state are subject to Oklahoma withholding. An employee is an Oklahoma resident for income tax purposes if certain criteria are met. Oklahoma income tax must also be withheld from wages paid to nonresident employees for services performed in Oklahoma. See Withholding on Residents, Nonresidents and Expatriates.
• Oklahoma employers determine withholding using state Form OK-W-4, Employee's Withholding Allowance Certificate. See Employee's Withholding Allowance Certificate.
• The withholding rate on supplemental wage payments, such as bonuses, is calculated differently depending on when the supplemental wage payments are made. See Supplemental Wages.
• Each year employers must provide copies of federal Form W-2, Wage and Tax Statement, to each employee from whom any amount of Oklahoma income tax was withheld, or would have been withheld under the approved tables and other methods if the employee had claimed no more than one withholding allowance. See Form W-2 Reporting Requirements.
• Employers are required to keep certain records of wages paid and taxes withheld for at least four years. See Recordkeeping Requirements.