Article
3 min read
Your Ultimate Guide to Oregon Payroll
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Author
Jemima Owen-Jones
Published
July 31, 2023
Last Update
September 02, 2024
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Table of Contents
Paying unemployment insurance (UI) in Oregon
Oregon state unemployment insurance (SUI) tax rates
Withholding personal income tax from your Oregon employee
State withholding tax rates in Oregon
Withholding statewide transit tax from your Oregon employee
Paying and withholding workers’ benefit fund assessment from your Oregon employee
Paying and withholding paid family leave from your Oregon employee
Paying your Oregon Workers’ Compensation
Payroll tax due dates in Oregon
Submission process for payroll taxes in Oregon
Withholding paid family leave from Oregon employees
Simplify US payroll tax compliance with Deel
Key takeaways
- Employers in Oregon must consider unemployment insurance, which provides financial assistance to eligible individuals who have lost their jobs involuntarily.
- Personal income tax is levied on individuals' earnings, including wages, salaries, investment income, and other sources of personal income.
- Workers' compensation, another employer consideration, is an insurance program that provides wage replacement and medical benefits to employees who suffer job-related injuries or illnesses.
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.
Experience rating | Minimum rate | Maximum rate |
---|---|---|
New employer | 2.4% | 3.8% |
Lowest rate | 0.9% | 0.9% |
Highest rate | 5.4% | 5.4% |
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.
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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.
Income bracket | Tax rate |
---|---|
Up to $3,650 | 4.75% |
$3,651 - $9,200 | 6.75% |
Over $9,200 | 8.75% |
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.
Continuous Compliance™
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:
Tax type | Frequency | Due date |
---|---|---|
Weekly payroll | Weekly | 3 business days after payday |
Monthly payroll | Monthly | 15th of the following month |
Quarterly payroll | Quarterly | Last day of the month following the quarter |
Annual reconciliation | Annually | Last day of February following the tax year |
Quarterly tax filings
Employers are required to file quarterly tax reports, with due dates at the end of the month following each quarter:
Quarter | Months | Due date |
---|---|---|
Q1 | January - March | April 30 |
Q2 | April - June | July 31 |
Q3 | July - September | October 31 |
Q4 | October - December | January 31 |
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.
FAQs
What is payroll tax?
Payroll tax includes federal, state, and local taxes withheld from employees' wages.
Who needs to file payroll taxes in Oregon?
Any employer who pays wages to employees in Oregon.
What forms are required for payroll tax filing?
Forms include OR-WR, quarterly withholding forms, and other specific tax withholding forms based on employment type.
How often do employers need to file payroll taxes?
Generally, payroll taxes are filed quarterly, with some annual reconciliation.
Where can employers find the necessary payroll tax forms?
Forms are available on the Oregon Department of Revenue website under the 'Employer Payroll Tax Forms' section.
Can payroll taxes be filed electronically?
Yes, through Oregon’s online tax portals.
What is the deadline for filing payroll taxes?
Deadlines vary, but quarterly reports are typically due by the end of the month following the quarter's end.
Who can employers contact for help with payroll taxes?
The Oregon Department of Revenue.
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.
Disclaimer: This article is provided for general informational purposes and should not be treated as legal or tax advice. Consult a professional before proceeding.
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About the author
Jemima is a nomadic writer, journalist, and digital marketer with a decade of experience crafting compelling B2B content for a global audience. She is a strong advocate for equal opportunities and is dedicated to shaping the future of work. At Deel, she specializes in thought-leadership content covering global mobility, cross-border compliance, and workplace culture topics.