Your Ultimate Guide to Oregon Payroll

Employers are responsible for various aspects of the business, from hiring and compliance to profit growth and payroll. Some of these factors are governed by regulations and requirements stipulated by the state.

If you’re an employer in Oregon, then this guide serves as a useful introduction to payroll withholding in the state, touching on unemployment insurance, personal income tax, and workers’ compensation.

Paying unemployment insurance (UI) in Oregon

Unemployment insurance is one of the several employer payroll taxes, also known as payroll withholding, that the employer withholds from an employee’s payroll. Other federal payroll taxes include Medicare and Social Security. 

Also known as UI, the US Department of Labor administers unemployment insurance to provide temporary financial relief to individuals who are unemployed through no fault of their own. Employers withhold unemployment insurance premiums from Oregon employees’ payroll and pay the state, which can be managed online through the Oregon unemployment insurance online portal.

For more information on paying your unemployment insurance, you can consult the Oregon Department of Revenue. 

Oregon state unemployment insurance (SUI) tax rates

In Oregon, 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 Oregon Department of Revenue's online portal.

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

Withholding personal income tax from your Oregon employee

Personal income tax is deducted from the employee’s wages and withheld by the employer. Also known as individual income tax or state income tax, the tax is charged on the income of Oregon residents. 

After withholding the tax from your employee, the employer is responsible for paying the amount withheld to the state, which can be made through the Oregon online payment portal. More information on paying personal income tax can be found in the Oregon Department of Revenue.

State withholding tax rates in Oregon

Oregon 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, visit the Oregon Department of Revenue - Withholding Tax.

Employers can manage these tax payments using Oregon’s Revenue Online portal, ensuring timely and accurate remittance. For more information on filing taxes online, visit the Oregon Revenue Online.

Withholding statewide transit tax from your Oregon employee

Statewide transit tax is another tax requirement in Oregon, and the funds go into the Statewide Transportation Improvement Fund to finance investments and improvements in public transportation services. 

The tax is deducted from the employee’s wages and is withheld by the employer, who is responsible for paying the amount withheld to the state. You can pay the withheld amount through Oregon’s online portal. The Oregon Department of Revenue provides additional information on statewide transit tax.  

Note: Employers must use Oregon’s new FrancesOnline system to file and pay the statewide transit tax. For more information visit Oregon Employment Department - FrancesOnline

Paying and withholding workers’ benefit fund assessment from your Oregon employee

The workers’ benefit fund (WBF) assessment funds return-to-work programs and provides increased benefits over time for workers who are permanently and completely disabled. The benefits can also be paid to families of workers who die from workplace injuries or diseases. 

The WBF assessment is funded through employer and employee contributions through payroll withholdings. After you withhold the tax from your employee, you are responsible for paying the amount you withheld to the state. You can pay the withheld amount through Oregon’s online portal. For more information on paying the withholding amount, the Oregon Department of Consumer Business Services provides more information.  

Note: Employers must use FrancesOnline to file and pay for the workers’ benefit fund assessment.

Paying and withholding paid family leave from your Oregon employee

Starting in January 2023, employers are required to make contributions to the Oregon Paid Family Leave (PFL) program. PFL allows an eligible employee to take time away from work to bond with a child during the first year after birth, adoption, or foster care placement. 

PFL also covers time away from work for a family member with a serious health condition and to take safe leave for an employee experiencing issues related to domestic violence, harassment, sexual assault, or stalking. 

PFL is funded through both employer and employee contributions through payroll withholdings. When you contribute to paid family leave, you will use FrancesOnline to file and pay for the program. For more information on PFL, you can visit the Oregon Employment Department.

Paying your Oregon Workers’ Compensation

On top of paying your Oregon payroll taxes, you will also need to pay for workers’ compensation in the state, even if you only have one Oregon employee. 

Workers’ compensation is insurance for an employee’s injury while performing their job, typically purchased from a qualified commercial carrier in the state. Oregon provides helpful information to help you find a qualified commercial carrier. 

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

Payroll tax due dates in Oregon

Employers must adhere to payroll tax due dates to remain compliant and avoid penalties. Oregon has specific deadlines for filing different types of taxes:

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 withheld taxes must be submitted by February 28th of the following year. For more information on filing deadlines, visit the Oregon Department of Revenue - Filing Deadlines.

Submission process for payroll taxes in Oregon

Employers are required to file payroll tax forms electronically using Oregon’s Revenue Online or FrancesOnline system. These systems ensure efficient and accurate filing. Employers should use forms such as OR-WR (Annual Reconciliation) and other relevant forms for quarterly filings.

Oregon tax portals allow employers to register, file, and pay their payroll taxes electronically, supporting efficient and accurate tax filing and payments. For more information, visit the Oregon Revenue Online.

Withholding paid family leave from Oregon employees

Oregon does not currently have a separate state-mandated paid family leave program. However, employers may need to comply with federal FMLA requirements and should stay informed about any future state legislation that could introduce similar programs.

Simplify US payroll tax compliance with Deel

If you’re an employer in Oregon, then this guide provides essential information on Oregon payroll taxes, payroll compliance, and state requirements. To learn more, streamline the payroll process, and ensure full compliance, many companies turn to Deel. 

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