Your Ultimate Guide to Oklahoma Payroll

The role of an employer is multi-faceted and includes several key responsibilities to their employees and the overall operation of the business, including navigating various regulations and requirements to ensure proper payroll within the relevant state. 

If you’re an employer in Oklahoma, this guide is a useful introduction to what employers need to pay employees and withhold from payroll in Oklahoma. Stay tuned to learn more about Oklahoma’s unemployment insurance, personal income tax, and workers’ compensation. 

Paying unemployment insurance (UI) in Oklahoma

Employers in Oklahoma are responsible for paying unemployment insurance, also known as UI. The payment is part of a national program administered by the US Department of Labor, providing temporary financial relief to people who become unemployed through no fault of their own. 

For added ease, employers can manage Oklahoma unemployment insurance through an online portal.

UI is a joint state-federal program, but it is not the only one employers must consider. Other federal taxes include Medicare, Social Security, and various state-specific employer payroll taxes or withholding. 

For more information on paying your unemployment insurance, you can consult the Oklahoma Employment Security Commission online. 

Oklahoma state unemployment insurance (SUI) tax rates

Oklahoma unemployment insurance tax rates are determined annually based on the employer's experience rating and other economic factors. Employers can access their specific tax rates through the Oklahoma Employment Security Commission's online portal.

Employers are responsible for paying unemployment insurance contributions based on these rates. These contributions support the unemployment fund, providing benefits to eligible employees.

Withholding personal income tax from your Oklahoma employee

Another key consideration is personal income tax withholding, also known as individual income tax or state income tax. The amount is charged on the income of Oklahoma residents and is deducted from the employee’s wages. 

The employer withholds these taxes and pays the required amount to the state. The withheld amount can be paid through Oklahoma’s online portal for convenience. For more information on paying the withholding amount, you can consult the Oklahoma Tax Commission.

State withholding tax rates in Oklahoma

Oklahoma uses a progressive tax rate system. Employers must use the state's tax withholding tables to calculate the appropriate withholding amount for each employee, based on their income level. For more information on tax rates and filing, visit the Oklahoma Tax Commission - Withholding Tax.

Employers can manage these tax payments using Oklahoma’s online portal, ensuring timely and accurate remittance.

Paying your Oklahoma workers’ compensation

Workers’ compensation is another key consideration for organizations that hire employees in Oklahoma, even if only a single Oklahoma resident is part of a remote team. 

When an employee gets injured while performing their job, workers’ compensation acts as insurance that provides medical and wage replacement benefits. It protects the worker by offering financial assistance when sick or injured while protecting the employer from potential workplace-related accidents. 

In Oklahoma, employers typically purchase workers’ compensation from a qualified commercial carrier. Find out more about finding a state-specific commercial carrier online. 

Top tip: Make sure that you verify that your workers’ compensation insurance is compliant with the state’s regulations for workers’ compensation.

Payroll tax due dates in Oklahoma

Employers must adhere to payroll tax due dates to remain compliant and avoid penalties. Oklahoma has specific deadlines for filing unemployment insurance taxes, personal income taxes, and other required payments:

Quarterly tax filings

Employers are required to file quarterly tax reports, with due dates at the end of the month following each quarter:

Annual reconciliation

An annual reconciliation of all payroll taxes must be submitted by February 28th of the following year. For more information on filing deadlines, visit the Oklahoma Tax Commission - Filing Deadlines.

Submission process for payroll taxes in Oklahoma

Employers are required to file payroll tax forms electronically using Oklahoma’s online tax portal. This system ensures efficient and accurate filing. Employers should use forms and guidelines provided by the Oklahoma Tax Commission for all payroll-related submissions.

The Oklahoma Tax Portal allows employers to register, file, and pay their payroll taxes electronically, supporting efficient and accurate tax filing and payments.

Simplify US payroll tax compliance with Deel

While this guide provides essential information on Oklahoma payroll taxes, payroll compliance, and state requirements extend beyond what is covered above. To streamline the process and ensure full compliance, companies can turn to Deel.

Deel offers a comprehensive solution for managing US and international payroll, including payments, taxes, worker classification, and more. Speak with an expert today to see how you can streamline your US payroll processes and ensure compliance with state regulations.