Oregon Wage and Payroll Tax Facts

Miscellaneous Oregon Tax Information

Reciprocal Agreement(s)

Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. Oregon currently has no reciprocal agreements with any other states.

This doesn't mean, however, that interstate workers living in Oregon pay double. It’s federally illegal for two states to tax the same income. In most cases, the employee’s work state will credit or refund them at tax time based on the taxes they owe their home state. If the tax rates differ, the employee must cover the difference.

Quarterly Combined Tax Report

Oregon uses a combined tax report (Form OQ) for employers to calculate and pay the following taxes each quarter:

• SIT and SUI
• Transit taxes
• Paid Family and Medical Leave taxes
• Workers' Benefit Fund

Employers often submit Form Oregon Schedule B and Form 132 (Employee Detail Report) with a Form OQ submission. Refer to the state's Combined Payroll Tax Report Instructions for more information on all three forms.

• Oregon Schedule B Form - Used if SIT deposits must be submitted semi-weekly or on a one-baking day basis.
• Form 132 - Reports the total gross wages of each Oregon employee. 

Paid Sick Leave (PSL) Taxes

The state of Oregon doesn't require employers to collect PSL taxes, but it does have a program providing such leave to eligible employees:

Oregon PSL Details
Covered Employees	All who work and reside in the state
Covered Employers	Those with 10 or more employees
Accrual Method(s)	1 hour for every 30 hours worked
Annual Accrual Maximum	40 hours
Carryover Maximum	40 hours
Total Accrual Maximum	80 hours
Frontloading Allowed	Yes
FAQs	Paid Sick Leave

Paid Family and Medical Leave (PFML) Taxes

Like SDI, Oregon's Paid Leave (PL) program is funded via mandatory payroll deductions. 

Oregon PL Details
Covered Employees	Those who work in Oregon and earned at least $1,000 the year before they apply for leave
Covered Employers	All
Tax Rate	1% of an employee's gross wages*
Wage Base Limit	$168,600
Maximum Leave Available	12 weeks (or 14 if the leave is pregnancy-related)
Wage Replacement	Varies based on employee's average weekly wage from the prior year (can go up to 120% of the state's average weekly wage)
FAQs	Paid Leave Oregon FAQs

*Large employers with 25 or more employees provide 40% of this amount, while their employees cover the remaining 60%. Small employers with fewer employees don't have to share this tax with employees but may choose to if they wish. 

Oregon Family Leave Act (OFLA) Taxes

The state of Oregon doesn't require employers to collect OFLA taxes, but the Act does provide protected, unpaid leave to employees. 

Oregon FLA Details
Covered Employees	Those who worked an average of 25 hours per week for 180 days
Covered Employers	Those with 25 or more employees
Maximum Leave Available	12 weeks
Wage Replacement	None
FAQs	OFLA FAQ

State and Local Transit Taxes

The state, and several local areas, also require transit taxes that vary based on where an employee works. While the 0.1% statewide transit tax is paid by resident and nonresident employees working in Oregon, the local versions are covered by employers as a percentage of the employee's gross wages:

Transit Tax Details
Canby	0.6%
Lane	0.0079%
Sandy	0.6%
South Clackamas	0.5%
Tri-Met	0.008137%
Wilsonville	0.5%

Workers' Benefit Fund Taxes

The Worker's Benefit Fund helps provide return-to-work assistance, benefits to permanently and totally disabled workers, and benefits to family members of workers who die from workplace injuries or diseases.

Employers and employees split this payroll tax evenly, at a rate of $0.22 per hour the employee worked. Employers can choose to pay the collected amounts to the state annually or every quarter.

Oregon Employer Registration

The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact the Department of Revenue for withholding tax topics and the Employment Department for unemployment tax topics.

Registration Details	Department of Revenue	Employment Department
Phone	(503) 378-4988	(503) 947-1488
Online Registration	Revenue Online Homepage
Registration Form	Form-OR-CER
Registration Instructions	Online and paper registration options are available. Account numbers will be issued during the online process or 2-4 weeks via mail. Identical account numbers for each tax type will be issued under a combined registration.
Employer Self-Service Login	Revenue Online Homepage	Frances Online Login Page