This tax was released in the Payroll Tax Update deployed on 12/10/2020.  See Payroll, Utilities, Payroll Tax Update Report to insure the 12/10/2020 update was installed.   Eugene,OR Withholding Tax effective Jan 1, 2021. Public sector employers do not have to pay the employer portion of this tax. They will need to make sure that they do not select the Eugene CT Supplemental CS Payroll Tax Employer Liability and Eugene CT Regular CS Payroll Tax Employer Liability taxes in the tax profile for tax group OR-LANCO-EUGCT.

I do not believe the Oregon State OQ form was modified yet.  If there was a change to that form we are notified and would have any changes done before time to file in 2021.  There may be a specific form for filing of local taxes which are generally not supported by Aatrix.

For private sector employers, what should they select?

Private sector employers have to withhold and pay the match.

They should be setting up the Tax Group mentioned above and in the Tax Profile that uses the OR-LANCO-EUGCT Tax Location Code would select the tax withholding and Employer Liability for Eugene OR (4 boxes) if they are in the Private Sector.  Public Sector employers do not pay the Employer portion so would only check 2 of those boxes.