Oregon
Employer’s
Guide
sos.oregon.gov/Business
II
Dear Oregon Entrepreneur,
Welcome to The Oregon Employer’s Guide.
The Secretary of State, Corporation Division publishes this guide, but many state agencies
worked to provide this information on government registration and licensing requirements for
businesses. This guide provides basic information and a general checklist to guide you through
the process of hiring employees.
Whether you are a current Oregon employer, are hiring your first employee, or plan to
hire Oregon workers for a business located in another state or foreign country, this guide
will aid in keeping your business in compliance with Oregon laws and regulations if you
plan to:
• Employ workers at a physical location in Oregon.
• Hire employees who work from their homes in Oregon.
• Issue payroll to yourself or others in Oregon.
The Corporation Division also publishes a separate guide to help when starting a business. The
Oregon Start a Business Guide provides a general checklist for the process of starting your
business, along with information on key contacts and business assistance programs to help you
start and operate your business.
Use the guides independently or together, depending on the specific needs of your business.
This guide works best when viewed online, as it contains clickable links for easy navigation. If
possible, use a computer. Go to sos.oregon.gov/business and search on Employer Guide to view
and use these pages online.
For further information, contact:
Secretary of State, Corporation Division
Public Service Building
255 Capitol St. NE, Ste. 151
Salem, OR 97310-1327
(503) 986-2200
CorporationDivis[email protected]gon.gov
sos.oregon.gov/business
III
PUBLICATION LIMITATIONS
The participating government agencies share all information allowed by law and help each other
enforce compliance with the individual programs. If you have any questions about the material
covered in this booklet, please contact the appropriate agency. Phone numbers are listed in each
section along with material provided by the agency. The information in this publication is not a
complete statement of laws and administrative rules. No information in this guide should be
construed as legal advice.
The State of Oregon has made every effort to ensure accuracy of the information at publication,
but it is impossible to guarantee that the information remains continuously valid.
This publication is updated periodically; assistance with corrections and additions is welcome.
Please email suggestions to CorporationDivision.SOS@sos.oregon.gov.
Secretary of State, Corporation Division
Public Service Building
255 Capitol St. NE, Suite 151
Salem, OR 97310-1327
(503) 986-2200
CorporationDivis[email protected]gon.gov
sos.oregon.gov/business
IV
EMPLOYER’S CHECKLIST
Hiring employees requires a great deal of preparation. The following is a basic checklist of recommendations to
help you when hiring the first employee for your business.
NOTE: This guide works best when viewed online, as it contains clickable links for easy navigation. If
possible, use a computer. Go to sos.oregon.gov/business and search on Employer Guide to view and use
these pages online.
1. Starting Out – Determine Employer Status
o Employer Obligations
o Employee
o Independent Contractor
___________________________________________________________________________________________
2. Obtain Federal and State Tax ID Numbers
___________________________________________________________________________________________
3. Obtain Workers Compensation Insurance
o Who needs coverage?
o What it provides
o Workers’ compensation assessments
o How do I get coverage?
o Compliance
_____________________________________________________________________________________________
4. Register for payroll tax withholding
o Who is an employee?
o Requirements
o Due dates
o Get a Business Identification Number (BIN)
_________________________________________________________________________________________________________
5. State and Federal unemployment tax
o Who must have wages withheld?
o Reporting requirements
_________________________________________________________________________________________________________
6. State and federal unemployment tax
o Who pays state unemployment tax?
o Who pays federal unemployment tax?
o Requirements
_________________________________________________________________________________________________________
7. Obtain immigration and naturalization I-9 forms for each employee
_________________________________________________________________________________________________________
V
8. Report new hires to Department of Justice, Division of Child Support
9. Contact BOLI for employer assistance
o Required employer compliance posters
_________________________________________________________________________________________________________
10. Determine if you comply with ADA
_________________________________________________________________________________________________________
11. Contact Oregon-OSHA about safety and health regulations
_________________________________________________________________________________________________________
12. Consider employee health insurance
_________________________________________________________________________________________________________
13. Consider employee retirement savings (OregonSaves)
_________________________________________________________________________________________________________
14. Understand Worksource Oregon resources
_________________________________________________________________________________________________________
15. Understand unemployment insurance benefits
_________________________________________________________________________________________________________
16. Review the Oregon Consumer Information Theft Protection Act
_________________________________________________________________________________________________________
17. Review resources for problem-solving: OSBA and the Taxpayer Advocate at
DOR
VI
TABLE OF CONTENTS
WHO IS AN EMPLOYER? ..................................................................................................................................... 1
Oregon Withholding Tax Definition ...................................................................................................................... 1
Oregon Unemployment Tax Definition .................................................................................................................. 1
Paid Leave Oregon Contribution Definition………………………………………………………………………1
Workers’ Benefit Fund (WBF) Assessment Definition…………………………………………………………...1
WHO IS AN EMPLOYEE? ..................................................................................................................................... 2
WHO IS AN INDEPENDENT CONTRACTOR? ................................................................................................. 2
Independent Contractor Standard for Oregon Department of Revenue; Employment Department;
Architect Examiners; Landscape Architect; Construction Contractors Board and Landscape Contractors
Board; Workers’ Compensation ............................................................................................................................. 2
Independent Contractor Standard for BOLI and US Department of Labor ........................................................ 3
Independent Contractor Standard for the Internal Revenue Service (IRS)…………………………………….4
Who to Contact for Help? ....................................................................................................................................... 4
Independent Contractor Website Information ........................................................................................................ 4
FEDERAL AND STATE EMPLOYER IDENTIFICATION NUMBERS (EIN AND BIN) ............................. 4
General Information ............................................................................................................................................... 4
Apply for Employer Identification Number (SS-4) ................................................................................................ 5
Apply for State of Oregon Business Identification Number…………………………………………………...…5
Industry Codes…………………………………………………………………………………………………….6
OBTAIN WORKERS’ COMPENSATION INSURANCE ................................................................................... 6
Who Needs Coverage? ........................................................................................................................................... 6
Who is an Employer? ............................................................................................................................................. 7
Exempt Employees ................................................................................................................................................. 7
What Workers’ Compensation Coverage Provides ................................................................................................ 8
How do I get Workers’ Compensation Insurance Coverage? ................................................................................ 8
Notice of Compliance ............................................................................................................................................. 9
Penalties for Noncompliance .................................................................................................................................. 9
Workers’ Compensation Assessments.................................................................................................................. 10
Reports Due Each Quarter .................................................................................................................................... 10
Business Assistance .............................................................................................................................................. 11
REGISTERING FOR PAYROLL TAX REPORTING ....................................................................................... 11
Obtain a Business Identification Number (BIN) .................................................................................................. 11
REPORTING AND PAYING COMBINED PAYROLL TAXES ....................................................................... 14
Reporting Requirements ....................................................................................................................................... 14
Reporting Options ................................................................................................................................................ 15
Forms .................................................................................................................................................................... 15
Payment Address .................................................................................................................................................. 15
Electronic Funds Transfer (EFT) .......................................................................................................................... 15
Final Payroll ......................................................................................................................................................... 16
Keep Your Records .............................................................................................................................................. 16
OREGON WITHHOLDING TAX ........................................................................................................................ 16
If You Are an Employer ....................................................................................................................................... 16
VII
Oregon-Based Employers ..................................................................................................................................... 17
Out-of-State Employers ........................................................................................................................................ 17
Taxable Wages ..................................................................................................................................................... 18
Reimbursable Expenses ........................................................................................................................................ 18
Withholding on Distributions from IRAs, Annuities, and Compensation Plans .................................................. 18
What about Farm Workers? .................................................................................................................................. 18
Exempt Wages ...................................................................................................................................................... 19
How to Compute Withholding Tax ...................................................................................................................... 20
Allowances ........................................................................................................................................................... 20
Voluntary Withholding for Civil Service Annuitants ........................................................................................... 20
Voluntary Withholding for Retired Members of the Armed Forces .................................................................... 20
Common Pay Agent ............................................................................................................................................. 21
Payment Due Dates .............................................................................................................................................. 21
Alternate Payment Method ................................................................................................................................... 21
Annual Withholding Reconciliation Report ......................................................................................................... 22
W-2 Forms ............................................................................................................................................................ 22
Reporting W-2 information .................................................................................................................................. 22
Reporting 1099 Information ................................................................................................................................. 22
Penalty and Interest .............................................................................................................................................. 23
Failure to File ....................................................................................................................................................... 23
Dishonored Checks or Electronic Payments ........................................................................................................ 23
Bonding Requirements ......................................................................................................................................... 23
Liability ................................................................................................................................................................ 23
Need More Information ........................................................................................................................................ 24
DEPARTMENT OF REVENUE OFFICES......................................................................................................... 24
OREGON UNEMPLOYMENT INSURANCE CONTRIBUTIONS .................................................................. 24
Employers Who Must Pay Unemployment Insurance (UI) Contributions ........................................................... 24
Who is an Employee? ........................................................................................................................................... 25
Taxable Payroll ..................................................................................................................................................... 25
Tax Rates .............................................................................................................................................................. 25
Nonprofit Organizations ....................................................................................................................................... 25
Religious Organizations ....................................................................................................................................... 26
Corporations ......................................................................................................................................................... 26
Limited Liability Companies and Limited Liability Partnerships ........................................................................ 26
Government Units and Political Subdivisions ...................................................................................................... 26
Reports Due Each Quarter .................................................................................................................................... 26
Domestic (In Home) Employer Reports ............................................................................................................... 27
Delinquent Contributions and Late Reports ......................................................................................................... 27
Change in Organization or Sale ............................................................................................................................ 27
Employer Ceases to be Subject to UI Contributions ............................................................................................ 27
Outreach and Education ....................................................................................................................................... 27
Need More Information? ...................................................................................................................................... 27
PAID LEAVE OREGON CONTRIBUTIONS…………………………………………………………………..28
TRANSIT DISTRICT TAXES .............................................................................................................................. 32
General Information ............................................................................................................................................. 32
Service Areas ........................................................................................................................................................ 32
TriMet Transit District ZIP Code List .................................................................................................................. 32
VIII
ZIP Codes Completely in TriMet Transit District ................................................................................................ 32
ZIP Codes Partially in TriMet Transit District ..................................................................................................... 33
Lane Transit District ZIP Code List ..................................................................................................................... 33
Who Must File and Pay a Transit Tax on Payroll? ............................................................................................... 33
Exempt Payroll ..................................................................................................................................................... 33
How to Register .................................................................................................................................................... 34
How to Figure the Transit Payroll Excise Tax ..................................................................................................... 34
When and How to File .......................................................................................................................................... 34
Penalty and Interest .............................................................................................................................................. 35
How to Close Your Transit Payroll Tax Account ................................................................................................ 35
For More Transit Payroll Tax Information ........................................................................................................... 35
Who Must File and Pay a Transit Self-Employment Tax? ................................................................................... 35
For More Transit Self Employment Tax Information .......................................................................................... 35
STATEWIDE TRANSIT TAX………………………………………………………………….………..35
General Information………………………………………………………………………………………..35
Who Must File and Pay Statewide Transit Tax?..............................................................................................36
Exempt Payroll……………………………………………………………………………………………36
When and How to File……………………………………………………………………………………...37
Penalty and Interest…………………………………………………………………………………….......37
How to Close Your Payroll Tax Account……………………………………………………………………37
TAX LIABILITY REFERENCE CHART ............................................................................................................. 38
WORKERS’ BENEFIT FUND (WBF) ASSESSMENT .................................................................................... 42
Who Reports and Pays the WBF Assessment ...................................................................................................... 42
How to Calculate the WBF Assessment ............................................................................................................... 42
Reporting and Paying ........................................................................................................................................... 42
Late or Incorrect Payments and Reports ............................................................................................................... 43
How to Update or Close Your WBF Assessment Account .................................................................................. 43
Need More Information? ...................................................................................................................................... 43
EMPLOYEE FEDERAL TAXWITHHOLDING ................................................................................................ 40
W-4 Form ............................................................................................................................................................. 43
Internal Revenue Service ...................................................................................................................................... 43
Who Must Withhold Federal Taxes? .................................................................................................................... 44
Social Security and Medicare Taxes .................................................................................................................... 44
Reporting Requirements ....................................................................................................................................... 44
Deposit Schedules & Electronic Federal Tax Payment System (EFTPS) ............................................................ 44
$2,500 Rule .......................................................................................................................................................... 46
$100,000 One-Day Rule ....................................................................................................................................... 46
Agricultural Employers ........................................................................................................................................ 46
Non-Payroll Items ................................................................................................................................................ 46
Electronic Deposit of Taxes ................................................................................................................................. 46
Annual and Final Reporting ................................................................................................................................. 47
Penalties and Interest ............................................................................................................................................ 47
Who Pays Federal Unemployment Tax? .............................................................................................................. 47
Reporting .............................................................................................................................................................. 47
How to get Forms ................................................................................................................................................. 47
IMMIGRATION & NATURALIZATION I-9 FORMS ..................................................................................... 48
IX
General Information and Resources ..................................................................................................................... 48
OREGON CHILD SUPPORT PROGRAM ......................................................................................................... 48
New Hire Reporting ............................................................................................................................................. 48
Electronic Funds Transfer (EFT) .......................................................................................................................... 49
CONTACT BUREAU OF LABOR AND INDUSTRIES (BOLI) ...................................................................... 49
Services Offered ................................................................................................................................................... 49
Resource Materials ............................................................................................................................................... 50
OREGON MINIMUM WAGE ............................................................................................................................ 50
POSTERS REQUIRED FOR EMPLOYERS ....................................................................................................... 50
Background .......................................................................................................................................................... 50
Bureau of Labor and Industries Required Posters ................................................................................................ 51
US Department of Labor Posters...………………………………………………………………………………51
Equal Employment Opportunity Commission Poster……………………………………………………………51
Safety and Health Poster…………………………………………………………………………………………51
Workers’ Compensation Notice of Compliance…………………………………………………………………52
Unemployment Insurance Notice (Form 11)…………………………………………………………………….52
Paid Leave Oregon Model Notice Poster………………………………………………………………………..52
COMPLY WITH AMERICANS WITH DISABILITIES ACT .......................................................................... 52
Background .......................................................................................................................................................... 52
CONTACT OREGON OSHA ................................................................................................................................ 53
General Information ............................................................................................................................................. 53
Services Offered ................................................................................................................................................... 53
Field Office Numbers ........................................................................................................................................... 54
HEALTH INSURANCE ASSISTANCE .............................................................................................................. 54
Oregon Health Insurance Marketplace ................................................................................................................. 54
Small Business Guide to Insurance and Worksite Safety ..................................................................................... 56
EMPLOYEE RETIREMENT SAVINGS .............................................................................................................. 56
Oregon Retirement Savings Program (OregonSaves)……………………………………………………………56
WORKSOURCE OREGON ................................................................................................................................... 57
Recruitment Services at No Additional Charge ................................................................................................... 57
Work Opportunity Tax Credit (WOTC) ............................................................................................................... 58
Foreign Labor Certification Program ................................................................................................................... 59
Veteran Services for Employers ........................................................................................................................... 59
Special Requirements for Federal Contractors ..................................................................................................... 60
Work Share Program ............................................................................................................................................ 60
UNDERSTAND UNEMPLOYMENT INSURANCE BENEFITS ..................................................................... 60
Qualifying ............................................................................................................................................................. 60
Disqualifications and Penalties ............................................................................................................................. 61
Working and Receiving Benefits .......................................................................................................................... 61
Notice of Claim Filed (Form 220) ........................................................................................................................ 61
Inquiries from Other States .................................................................................................................................. 62
X
Reporting a Job Refusal ........................................................................................................................................ 62
Fraud ..................................................................................................................................................................... 62
HEARINGS ............................................................................................................................................................. 62
Purpose and Process ............................................................................................................................................. 62
LABOR MARKET INFORMATION ................................................................................................................... 63
Information on the Internet ................................................................................................................................... 63
Labor Market Information Publications ............................................................................................................... 63
UNCLAIMED PROPERTY ................................................................................................................................... 64
Complying with Oregon’s Unclaimed Property Law ........................................................................................... 64
OREGON CONSUMER INFORMATION PROTECTION ACT ...................................................................... 64
OFFICE OF SMALL BUSINESS ASSISTANCE ................................................................................................. 65
Fostering Collaboration for Better Business ........................................................................................................ 65
Get Help ............................................................................................................................................................... 66
OFFICE OF THE TAXPAYER ADVOCATE………...……………………………………………………..…..66
1
WHO IS AN EMPLOYER?
Oregon law differs from federal law. Some state agencies have different requirements of employers than other state
agencies. For more information, contact the Department of Revenue at 503-945-8100, the Employment Department
at 503-947-1488, or the Department of Consumer and Business Services at 503-947-7815.
Oregon Withholding Tax Definition:
If you pay someone to work for you, are in charge of the way the job is done, or have the right to direct and control
the worker, the worker is probably your employee (ORS 316.162(1), OAR 150-316-0255, ORS 670.600).
According to Oregon law for withholding tax purposes, an employer is:
• A person or an organization for whom a worker performs a service as an employee;
• A person who has the right to hire and fire an employee;
• A person who provides the tools and a place to work;
• A person who directs and controls the work of another person;
• An officer or employee of a corporation or a member, partner, or other employee of a partnership, who is
responsible for complying with withholding tax provisions of the income tax law.
An employer may be an individual, corporation, partnership, estate, trust, association, joint venture, or other
unincorporated organization. Religious, educational, charitable, and social organizations can also be employers,
even though such organizations may be exempt from paying income tax.
Oregon Unemployment Tax Definition:
Any individual or organization with employees working for pay is an employing unit. Employing units that meet
any of the following criteria, are employers for purposes of Employment Department law:
1. Employers, other than agricultural or domestic employers, who:
• Pay $1000 or more to employees in a calendar quarter, or
• Have one or more employees in each of 18 separate weeks during any calendar year.
2. Employers who employ agricultural workers, and:
• Pay $20,000 or more in cash wages in a calendar quarter, or
• Have 10 or more employees in each of 20 weeks during a calendar year.
3. Employers who employ domestic (in home) workers in a personal residence and pay $1,000 or more in cash
wages in a calendar quarter.
Paid Leave Oregon Contribution Definition:
Employers and employees share the cost of Paid Leave Oregon. The 2024 contribution rate is 1%. The total
contribution rate is the amount the employer and employee combined pay into the program. Employees pay 60% of
the total contribution rate.
Workers’ Benefit Fund (WBF) Assessment Definition:
You are required to report and pay the WBF assessment if 1) you have workers for whom you are required by
Oregon law to provide workers’ compensation insurance coverage; 2) you choose to provide workers’
compensation insurance coverage for yourself or any others that receive remuneration, even though Oregon law
2
does not require the coverage; or 3) you have any paid individuals performing personal support work who are
eligible for workers’ compensation insurance coverage under House Bill 3618 (2010).
WHO IS AN EMPLOYEE?
An employee is anyone who performs services for pay for another person or organization under the direction and
control of the person or organization. Even when the employer gives the employee freedom of action, the person
performing the service may still be considered an employee.
What really matters is that the employer has the legal right to control the method and the result of the services, even
though the employer may not always exercise that right.
Corporate officers--whether a C corporation or an S corporation--who are paid for working for the corporation are
considered employees of the corporation and are subject to withholding tax requirements (ORS 316.162, OAR 150-
316-0235).
WHO IS AN INDEPENDENT CONTRACTOR?
In Oregon, workers may only be classified as independent contractors if they meet the provisions of laws and court
decisions that define independent contractor and employer-employee relationships.
The provisions vary for some agencies; you should read this entire section and check with agency representatives if
you need more information.
Independent Contractor Standard for Oregon Department of Revenue; Employment
Department; Architect Examiners; Landscape Architects; Construction Contractors Board and
Landscape Contractors Board; Workers’ Compensation Division
For these agencies, independent contractors are defined in ORS 670.600. This law considers service providers to be
independent contractors if they:
• Are free from direction and control, subject to the right of the service recipient to specify the desired result.
• Are licensed under ORS 671 or 701 (Construction Contractors Board, Landscape Contractors Board, State
Landscape Architect Board, or State Board of Architect Examiners) if required for the service.
• Are customarily engaged in an independently established business (if they meet three out of five requirements
listed below):
1. Maintain a business location that is:
a. Separate from the business or work location of the service recipient; or
b. In a portion of their own residence that is used primarily for business.
2. Bear the risk of loss, shown by factors such as:
a. Entering into fixed price contracts;
b. Being required to correct defective work;
c. Warranting the services provided; or
d. Negotiating indemnification agreements or purchasing liability insurance, performance bonds, or errors
and omissions insurance.
3. Provide contracted services for two or more different persons within a 12-month period; or routinely
engage in business advertising, solicitation, or other marketing efforts reasonably calculated to obtain new
contracts to provide similar services.
4. Make a significant investment in the business through means such as:
a. Purchasing tools or equipment necessary to provide services;
b. Paying for the premises or facilities where the services are provided; or
3
c. Paying for licenses, certificates or specialized training required to provide the services.
5. Have the authority to hire and fire other persons to provide assistance in performing the services.
A person who files tax returns with a Schedule F and performs agricultural services reportable on a Schedule C is
not required to meet the independently established business requirements (1 through 5).
Forming a business entity, such as a corporation or limited liability company, does not by itself establish that the
individual providing services will be considered an independent contractor. For more information, contact:
Employment Department 503-947-1488
Oregon Department of Revenue 503-945-8091
Workers’ Compensation Division (DCBS) 503-947-7815
Independent Contractor Standard for BOLI and US Department of Labor
The Bureau of Labor and Industries (BOLI) and the US Department of Labor use criteria established through
court cases, known as the “economic realities” test, to determine whether a worker is an employee or an
independent contractor in wage and hour matters, including minimum wage and/or overtime claims.
The Economic Realities Test:
No single factor is determinative; however, the following factors are used to gauge the degree of the worker’s
economic dependency on the employer:
• The degree of control exercised by the alleged employer
• The extent of the relative investments of the worker and the alleged employer
• The degree to which the worker’s opportunity for profit and loss is determined by the employer
• The skill and initiative required in performing the job
• The permanency of the relationship; and
• The extent to which the work performed by the worker is an integral part of the alleged employer’s
business
If under these criteria a worker is deemed dependent upon the alleged employer to be able to provide services,
the worker most likely would be classified as an employee.
NOTE: BOLI’s Civil Rights Division applies a different test, the “right to control” test, to determine whether
a worker is an employee or an independent contractor in discrimination cases.
The Right to Control Test:
Under the “right-to-control test”, four factors are weighed to determine whether an employer has the “right to
control” the work of an individual. Where an employer clearly has the “right to control” the work of an
individual under this test, that individual is deemed an employee rather than an independent contractor for
purposes of civil rights law.
The factors of the “right-to-control” test are:
• Direct evidence of the right to, or the exercise of, control;
• The method of payment;
• The furnishing of equipment; and
• The right to fire.
It is not necessary that all factors coincide to determine whether a given worker is an employee. In such cases,
the weight or strength of the factors which are in evidence will be considered.
4
Additional information and guidance relating to making independent contractor classification determinations is
available online at oregon.gov/boli/employers/Pages/employee-or-independent-contractor.aspx or contact BOLI at
971-361-8400
Independent Contractor Standard for the Internal Revenue Service (IRS)
The Internal Revenue Service (IRS) looks to common law rules to determine whether an individual is an employee
or an independent contractor. IRS Publication 15-A outlines the process for making the proper determination.
Please visit https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-
or-employee for more information, or call 800-829-4933.
Note: There is no single factor that controls who is an independent contractor. Before deciding that you or someone
else is an independent contractor, it is important to consider all the facts and the consequences. Failure to do so
could lead to fines, penalties, and considerable legal expense. Anyone considering hiring an independent contractor
or becoming one, should consult their legal advisor and the appropriate government agencies.
Who to Contact for Help?
Bureau of Labor and Industries (BOLI) 971-361-8400 or oregon.gov/BOLI (employers)
Employment Department (OED) 503-947-1488 or employment.oregon.gov
Department of Revenue (DOR) 503-945-8091 or oregon.gov/DOR
Internal Revenue Service (IRS) 800-829-4933 or www.irs.gov
Workers’ Compensation Division (DCBS) 503-947-7815 or wcd.oregon.gov
Independent Contractor Website Information
Oregon has an independent contractor informational page at oregon.gov/IC . You will find information to help you
understand more about this issue, including:
• Answers to questions that a business owner or a worker might ask;
• Links to individual agencies, contact information, laws, and rules;
• Things to consider for specific types of business.
FEDERAL AND STATE EMPLOYER IDENTIFICATION NUMBERS
(EIN AND BIN)
General Information
All businesses, except certain sole proprietors, are required to obtain a federal employer identification number
(EIN).
• Application for EIN requires identification of responsible party
• Change in Application for Employer Identification Number
• Use of Nominees in the EIN Application Process
How to update Incorrect Information
• Updating Incorrect Business Entity Information
If you have any questions regarding the federal employer identification number, contact your local IRS office or:
Internal Revenue Service
1220 SW 3
rd
Avenue
5
Portland, OR 97204
800-829-4933
www.irs.gov
Apply for Employer Identification Number (SS-4)
To obtain a Federal Employer Identification Number (sometimes called an EIN or FEIN), you can file online or
complete an SS-4 form. SS-4 forms are available at all IRS offices, or the IRS will send you a form if you call 800-
829-3676.
Be sure you include a daytime phone number on the application, in case additional information is required. Filing is
free.
Online: A provisional number will be assigned immediately when the form is submitted online. A letter
confirming your EIN number will be mailed two to three weeks after the form is processed.
Phone: 800-829-4933
You will need a completed SS-4 in hand.
Fax: You can fax the completed Form SS-4 (PDF) application to your state fax number (see Where to
File – Business forms and Filing Addresses), after ensuring Form SS-4 contains all the required
information. If it is determined the entity needs a new EIN, one will be assigned using the
appropriate procedures for the entity type. If the taxpayer’s fax number is provided, a fax will be
sent back with the EIN within four (4) business days.
Mail: Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Fax: 855-641-6935
You will receive your EIN number by mail in four to five weeks.
Apply for Oregon Business Identification Number (BIN)
Before issuing any Oregon paychecks, an employer is required to register for payroll withholding with the
Oregon Department of Revenue to receive a Business Identification Number (BIN).
•
To obtain a BIN, apply through Revenue Online. Under Quick Links, click “Register and Apply”,
then find the BIN under “Registrations.”
•
The paper form alternative, the Combined Employer’s Registration Form (Form 150-211-055) is
available in PDF format.
An EIN is required to get a BIN. Incomplete registrations will not be processed.
Note: You do not need a BIN unless you are an employer, have imminent plans to hire employees, or
have active workers’ compensation insurance in Oregon.
The BIN is used when reporting, paying, or making inquiries about your withholding, unemployment
insurance, transit taxes, Workers’ Benefit Fund assessment, and the statewide transit taxes.
6
It is important that you include your BIN on all correspondence, returns, and payments that you file with the
Department of Revenue, Employment Department, and the Department of Consumer and Business Services.
Note: Your Oregon Business Identification Number (BIN) is different than your registry number issued by
the Oregon Secretary of State’s Corporation Division. The Corporation Division does not record your BIN.
Industry Codes
Some government agencies require information about what a business does. There are several systems for obtaining
such information, usually in the form of a specific number or code to classify an industry.
• The North American Industry Classification System (NAICS) is nationally used and is administered by the
US Census Bureau. Search for NAICS codes at https://www.census.gov/naics/.
• National Institute of Government Purchasing (NIGP) codes are used by several Oregon agencies who post
bidding information on the OregonBuys platform. Once logged in to OregonBuys, users can select the best
NIGP code for their business. The Government Contract Assistance Program (www.gcap.org) may help
businesses identify the most precise codes for a business.
• The National Council on Compensation Insurance (NCCI) is a rating and statistical organization that is
responsible for creating a classification system that categorizes occupations to use in pricing of workers
compensation insurance. There are over 600 classifications, each with a unique 4-digit code and rate,
covering occupations from clerical to roofing. Light hazard occupations typically have a lower rate than
high hazard occupations. To learn more, contact the Small Business Ombudsman for Workers’
Compensation at https://www.oregon.gov/DCBS/SBO/Pages/index.aspx.
OBTAIN WORKERS’ COMPENSATION INSURANCE
Who Needs Coverage?
All employers doing business in Oregon, with very few exceptions, are subject to the Oregon Workers’
Compensation Law. Employers must obtain workers’ compensation insurance before they hire employees. Failing
to provide workers’ compensation coverage will subject employers to penalties and liability for all claims costs if an
employee is injured on the job.
This section provides you with basic information on who must have workers’ compensation insurance, how to
obtain it, and how the workers’ compensation programs are financed.
For general questions regarding workers’ compensation insurance, or if you know of a potential non-complying
employer, contact:
Department of Consumer and Business Services
Workers’ Compensation Division, Employer Compliance Unit
PO Box 14480
Salem, OR 97309-0405
503-947-7815
Email: workcomp.questions@dcbs.oregon.gov
Internet site: wcd.oregon.gov
7
Who is an Employer?
If you pay someone to work for you and that person is not an independent contractor, you are probably an employer.
You don’t have to provide workers’ compensation coverage to independent contractors, though you may choose to
do so.
If you are trying to determine whether you need workers’ compensation insurance for a specific work situation,
contact the Employer Compliance Unit at 503-947-7815.
Exempt Employees
Some workers do not have to be covered by workers’ compensation. These workers are usually called “exempt” or
“nonsubject” workers. Here are some of the most common exemptions:
• Sole proprietors. If you are a sole proprietor, you don’t need workers’ compensation coverage for yourself,
although you may elect to do so.
• Partners. Partners don’t need to be covered by workers’ compensation insurance unless the partnership is in the
construction industry. However, the partners must have the right to make business decisions to be exempt.
In the construction industry, exemptions are only allowed if the partnership is registered with the Construction
Contractors Board or Landscape Contractors Board. If the partnership is registered, and all partners are part of
the same family, then all partners may elect to be exempt. Otherwise, the number of exempt partners is limited
to:
1. Two partners, or
2. One partner for each 10 employees, whichever is more.
• Private residence workers. Private residence workers are people working for you in or around your home.
This includes workers doing cleaning, home health care, gardening, maintenance, and remodeling. It does not
include laborers constructing a new home. NOTE: This exemption might not apply if you run a business out of
your home.
• Casual labor. Casual labor is labor that costs less than a certain amount in any 30-day period. As of Jan.1,
2022, the amount is $1,000. The amount changes every July 1 based on Oregon’s average weekly wage.
NOTE: This is total payroll, not the payroll for each individual worker.
If an employer’s total payroll is always below this amount within any 30-day period, its workers are “casual”
and do not have to be covered by workers’ compensation. However, if its total payroll is equal to or greater than
the total amount within any 30-day period, the employer must provide workers’ compensation coverage.
Employers in the construction industry should be aware that Construction Contractors Board (CCB) and
Landscape Contractors Board (LCB) rules don’t allow a licensee to hire even casual labor while it is registered
as not having workers.
• Some corporate officers. Corporate officers don’t need to be covered by workers’ compensation if they are:
1) on the board of directors, and
2) own at least 10 percent of the stock or an amount equal to the average held by all stockholders. The
ownership requirement does not apply to most family-run farms.
In the construction and timber industries, this same rule applies if all corporate officers are family members.
Otherwise, the number of exempt officers is limited to:
1) two corporate officers, or
2) one corporate officer for each 10 employees, whichever is more.
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• Most limited liability company members. Members of an LLC don’t need to be covered by workers’
compensation unless they are in the construction industry. Most members are exempt, except in the construction
industry. Note: to be exempt, one must be a bona fide LLC member, having all member rights prescribed by
law.
In the construction industry, exemptions are only allowed if the company is registered with the CCB or LCB,
and the member must have a substantial ownership interest in the company. If an LLC is registered, and all
members are part of the same family, then all members are exempt. Otherwise, the number of exempt members
is limited to:
1. two members, or
2. one member per 10 employees, whichever is more.
• Workers from out-of-state. Employers from other states who temporarily bring their out-of-state employees
into Oregon don’t always need Oregon coverage. However, coverage is required if you hire any Oregon
workers or if you come from a state that does not recognize Oregon’s coverage in that state.
If sole proprietors, partners, corporations, or limited liability companies are working under a contract, they must
also qualify as independent contractors to be exempt. For more information, contact the Workers’ Compensation
Division, Employer Compliance Unit at 503-947-7815.
What Workers’ Compensation Coverage Provides
Costs of injured workers’ claims are paid by the insurer or directly by employers who are certified as self-insured.
Claims costs include all medical expenses related to accepted claims for injury, as well as payments to workers
while they are temporarily or permanently disabled. It also provides payments to dependents if the worker dies
because of occupational injury or disease.
How do I get Workers’ Compensation Insurance Coverage?
In Oregon there are three methods to get workers’ compensation insurance coverage: 1) through an insurance
company, 2) by self-insurance, or 3) through a worker leasing company (also known as a professional employer
organization, or PEO).
Insurance Companies: You can obtain insurance from any insurer authorized to provide workers’ compensation in
Oregon, of which there are over 300. Many of these insurers sell policies through agents. Often the agency that
handles your other business insurance will also write your workers’ compensation insurance. Some insurers will
deal directly with you, and a few have made special arrangements to provide workers’ compensation through
business organizations or associations. The Department of Consumer and Business Services has a Small Business
Ombudsman who will be glad to discuss different options with you. Call 971-673-2895 for assistance.
The Oregon Assigned Risk Plan: The Oregon Assigned Risk Plan is a mechanism to allow all Oregon employers
who have been denied coverage by at least one insurer the ability to obtain workers’ compensation insurance. The
National Council on Compensation Insurance (NCCI) administers the plan. If you are turned down by at least one
insurer and you do not owe another workers’ compensation insurer money, you can apply for coverage through
NCCI. NCCI will make an assignment of your account to one of the Oregon assigned risk insurers. It is advisable to
continue to “shop” for better rates after obtaining an assigned risk policy. You can start the application process
through NCCI by calling toll free 1-800-622-4123 and asking for the Oregon desk. You can also visit NCCI’s
website at www.ncci.com.
Self-insurance: You may be able to qualify as a self-insured employer. This option is usually only available to very
large employers, because the employer must have the financial resources to pay for major claims.
You must be certified by the Workers’ Compensation Division (WCD) to be self-insured. To find out about the
requirements for being certified as a self-insured employer, contact the WCD Self-Insurance Certification Program.
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Worker Leasing: Some employers opt to contract with a worker leasing company (also known as a professional
employer organization, or PEO) to obtain their workers’ compensation coverage. By contract, the worker leasing
company will take over your payroll, workers’ compensation insurance, and most other paperwork. Worker leasing
companies must be licensed with the Workers’ Compensation Division of the Department of Consumer and
Business Services to do business in Oregon. There are potential liabilities for your business when a worker leasing
company is not licensed in Oregon. To ensure you are utilizing the services of a licensed worker leasing company,
view the list of actively licensed companies by visiting the Worker Leasing Program web page at
wcd.oregon.gov/employer/worker-leasing/ and then selecting the link on the right side of the page under
“Resources.” If you do not have access to the website, you can call the Workers’ Compensation Division’s Worker
Leasing Program at 971-283-6819 to confirm a license.
Notice of Compliance
Once you purchase workers’ compensation insurance, is there anything else you need to do? Yes! Oregon law
requires that the employer take a second step after buying the insurance: the employer must be sure the insurance
company files proof of coverage with the Workers’ Compensation Division.
When proof of coverage has been filed, the Workers’ Compensation Division mails the employer a Notice of
Compliance certificate. The employer must post this notice where employees will see it. If an employer does not
properly post this notice, the employer can be fined.
When you receive your Notice of Compliance, you know you have valid workers’ compensation insurance in force.
If you pay for your insurance and do not receive a Notice of Compliance within 30 days, check to be sure your
insurance company has filed your workers’ compensation insurance proof of coverage. If you have questions about
your proof-of-coverage filing or the Notice of Compliance, call 503-947-7815.
Penalties for Noncompliance
If the Workers’ Compensation Division discovers you do not have the required workers’ compensation coverage,
you will be subject to a fine. The penalty for a first offense is two times the amount of premium you should have
paid for insurance, with a minimum of $1,000. If you continue to employ without coverage, the penalty could be up
to $250 per day of noncompliance with no limit on the total fine. The Workers’ Compensation Division may seek a
court injunction to force you to stay in compliance; if you disobey the injunction, you are subject to additional
sanctions including possible jail time.
The expenses that result when a worker is injured can be even more costly than the penalties. By law, a
noncomplying employer is financially responsible for the same benefits insured workers receive. The law requires
that a certified claims agent process the claim and you pay the fee for this processing on top of the claim benefit
costs. The total bill can be hundreds of thousands of dollars, depending on claim severity. Bankruptcy may not
protect you from certain noncomplying employer obligations. Business owners cannot avoid personal liability by
forming a corporation or limited liability company, because corporate officers, directors, limited liability company
members, and managers are personally liable for penalties and claim expenses. In addition, lawsuit protection does
not apply to a noncomplying employer; an injured worker can also file a civil suit against a noncomplying employer
and collect whatever amount the court awards.
Workers’ Compensation Assessments
Employers pay an assessment on workers’ compensation insurance premiums through their insurer to the
Department of Consumer and Business Services. This premium assessment covers certain costs of the department’s
operations.
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Another assessment, the Workers’ Benefit Fund (WBF) assessment, is used to fund the Workers’ Benefit Fund
maintained by the department. The WBF assessment rate is determined annually, and employers are notified by
mail during the fall of the rate for the upcoming year. The total WBF assessment is calculated based on the number
of hours or part of an hour each employee works. Half is withheld from the employee’s wages and half is paid by
the employer. The employer reports and pays the total amount with other state payroll taxes through Oregon’s
Combined Payroll Tax Reporting System.
The WBF assessment is used to fund programs that assist workers and the dependents of those workers. Part of this
money is used to increase monthly payments to workers who are permanently and totally disabled and to surviving
spouses and children of workers who have died as the result of an occupational injury or illness.
The WBF assessment is also used to encourage the employment or reemployment of previously injured or disabled
workers. The Workers’ Compensation Division offers two programs through its Employment Services Team to
encourage and support the reemployment and early return to work of injured workers. The Employer-at-Injury and
Preferred Worker programs offer work site modification, wage subsidy, premium exemption relief, and subsidy of
the cost of tools, equipment, and other related items required for employment. Employers interested in hiring
employees who qualify for the Preferred Worker Program (PWP) can contact the program directly by phone at 503-
947-7588 or 800-445-3948 (toll-free), or email pwp.or[email protected]gon.gov.
Reports Due Each Quarter
All employers who are required by law or elect to carry workers’ compensation insurance are required to report and
pay the Workers’ Benefit Fund assessment. You report and pay this assessment using Oregon combined payroll tax
forms (Form OQ and Form OR-OTC-V), along with other State payroll taxes administered by the Oregon
Department of Revenue and Employment Department. You can file these reports using Frances Online at
frances.oregon.gov/Employer.
If you must report and pay withholding, unemployment, or transit taxes, as well as Paid Leave Oregon
contributions, see the section “File Combined Employer’s Registration Form” for information on registering for this
combined filing. If you are not subject to these other payroll taxes or contributions, but carry workers’
compensation insurance in Oregon, the Workers’ Compensation Division will register you for a state business
identification number (BIN) and send you Oregon combined payroll tax forms for reporting and paying the
Workers’ Benefit Fund assessment. Employers generally must file these reporting forms quarterly by the last day of
the month following the end of each calendar quarter. Some agricultural and domestic (in-home) employers are
eligible to report their payroll taxes, including the WBF assessment, annually. See the “Workers’ Benefit Fund
(WBF) Assessment” section in this guide for more information.
The total assessment amount is due by the quarterly reporting date. Payments can be made electronically by logging
into Revenue Online at www.oregon.gov/dor. Log in, select “Withholding Payroll,” and click on “I want to make an
OTC payment.” To pay by mail, use paper Form OR-OTC-V.
To order OR-OTC-V forms, go to https://www.oregon.gov/dor/forms/FormsPubs/form-or-otc-v_211-053.pdf or
call 503-378-4988. Submit Form OR-OTC-V and payment to:
Oregon Department of Revenue
PO Box 14800
Salem, OR 97309
Employers who file reports after the due date or who fail to pay their assessments on time may be subject to
penalties, in addition to interest and assessment owed.
For more information on reporting and paying the WBF assessment, write or call:
Department of Consumer and Business Services
CSD Assessments Unit
PO Box 14480
Salem, OR 97309-0405
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503-378-2372
Email: wbf.assess[email protected]regon.gov
Website: www.oregon.gov/dcbs/wbf/Pages/index.aspx
Business Assistance
The Small Business Ombudsman for Workers’ Compensation serves as an independent advocate for small
businesses by providing information and assistance regarding workers’ compensation insurance and claims
processing matters. Contact the ombudsman in Salem by calling 971-673-2895 or visit oregon.gov/dcbs/SBO.
The Secretary of State’s Office of Small Business Assistance assists small businesses and nonprofits with questions,
concerns, and complaints about state or local government. Contact an ombudsman through their toll-free number,
844-469-5512, via email at Business.SOS@sos.oregon.gov, or visit sos.oregon.gov/BusinessSOS.
The U.S. Small Business Administration (SBA) National Ombudsman's mission is to assist small businesses when
they experience excessive or unfair federal regulatory enforcement actions, such as repetitive audits or
investigations, excessive fines, penalties, threats, retaliation, or other unfair enforcement action by a federal agency.
Contact the SBA Ombudsman by calling 888-734-3247 (888-REG-FAIR), or on the web page of the SBA
Ombudsman: www.sba.gov/about-sba/oversight-advocacy/office-national-ombudsman
REGISTERING FOR PAYROLL TAX REPORTING
Obtain a Business Identification Number (BIN)
Before issuing any Oregon paychecks, an employer is required to register for payroll withholding with the Oregon
Department of Revenue by filing a Combined Employer’s Registration form to receive a Business Identification
Number (BIN).
• To obtain a BIN, apply through Revenue Online. Under Quick Links, click “Register and Apply”, then find
the BIN under “Registrations.”
• The paper form alternative, the Combined Employer’s Registration Form (Form 150-211-055) is available
in PDF format.
An EIN is required to get a BIN. Incomplete registrations will not be processed. If you do not have access to a
computer, you can call the Department of Revenue at 503-945-8091 to request a copy of the form. Fax or mail the
registration to the address at the bottom of the form (ORS 316.202 or OAR 150-316-0355).
It is important that you include your BIN on all correspondence, returns, and payments that you file with the
Department of Revenue, Employment Department, and the Department of Consumer and Business Services. If you
have a BIN but do not know the number, contact the Department of Revenue at 503-945-8091 or toll free in Oregon
at 800-356-4222. Note: Your Oregon Business Identification Number (BIN) is not the same as your registry
number issued by the Oregon Secretary of State, Corporation Division.
If you are not an employer and have no imminent plans to hire, you do not need a BIN.
Within a few weeks, the Department of Revenue will assign your business a Business Identification Number (BIN).
The BIN is the employer’s account number used for all payroll taxes that are a part of Frances Online. The
Employment Department will send you information on options to file your quarterly payroll reports. Oregon payroll
taxes and contributions include withholding, transit district taxes, the statewide transit tax administered by the
Department of Revenue, unemployment insurance taxes and Paid Leave Oregon contributions administered by the
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Employment Department, and the Workers’ Benefit Fund assessment administered by the Department of Consumer
and Business Services.
Note: Employers must complete a new Combined Employer’s Registration form (as well as a Business Change in
Status Form) if the structure of the business changes from a sole proprietorship to corporation or partnership, if the
business ceases to be an employer, or if it closes altogether. You can report these changes using Frances Online at
frances.oregon.gov/Employer.
Read the separate sections in this guide on withholding (see Oregon Withholding Tax), unemployment insurance
(see Oregon Unemployment Insurance Tax), Paid Leave Oregon contributions (see Paid Leave Oregon
Contributions), and transit taxes (see Transit District Taxes) to determine if wages you are paying are subject to
these taxes. There are differences between taxing agencies in who is considered an employer and an employee.
Some wages may be subject to one tax, but not to another. A reference chart (see Tax Liability Reference Chart)
compares the liability for withholding, unemployment insurance, and transit taxes for certain types of wages.
In addition, read the sections in this guide on workers’ compensation insurance (see Obtain Workers’
Compensation Insurance) and the Workers’ Benefit Fund assessment (see Workers’ Benefit Fund (WBF)
Assessment) to determine whether you need workers’ compensation insurance and are subject to the Workers’
Benefit Fund assessment. Even though the law may not require you to carry workers’ compensation insurance, if
you choose to carry coverage or your workers are provided with coverage under ORS 410.605 (5)(h) (2021), you
and your covered workers are subject to the Workers’ Benefit Fund assessment.
For State Withholding, TriMet Transit, Lane Transit, or Statewide Transit payroll tax information, contact:
By mail: In person:
Oregon Department of Revenue 955 Center Street NE
PO Box 14800 Salem, OR 97301-2555
Salem, OR 97309-0920 503-945-8091
On the internet: Email questions answered at:
oregon.gov/DOR payroll.help.dor@dor.oregon.gov
The Payrolltax-News email list provides employers with complete and up-to-date payroll tax information.
Employers can subscribe to this email list. Representatives in the Business Division will send information to
employers through this list.
For Unemployment Insurance tax information, contact:
By email:
OED_TAX[email protected]regon.gov
By phone:
503-947-1488
By mail:
Oregon Employment Department
875 Union Street NE
Salem, OR 97310
On the internet:
www.oregon.gov/employ/Businesses/Pages/Contributions.aspx
frances.oregon.gov/Employer
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For Paid Leave Oregon Contribution information, contact:
By submitting an online request:
paidleavecontact.oregon.gov/hc/en-us/requests/new
By phone:
503-947-1488
By mail:
Oregon Employment Department
875 Union Street NE
Salem, OR 97310
On the internet:
paidleave.oregon.gov/employers-overview/
frances.oregon.gov/Employer
Sign up for updates with the Employment Department for complete and up-to-date information about
unemployment insurance taxes and Paid Leave Oregon contributions at
https://public.govdelivery.com/accounts/OREMPDEPT/subscriber/topics.
For Workers’ Benefit Fund assessment information, contact:
By email: wbf.assessments@dcbs.oregon.gov
By phone: 503-378-2378
By mail:
Department of Consumer and Business Services
CSD Assessments Unit
PO Box 14480
Salem, OR 97309-0405
On the internet:
www.oregon.gov/dcbs/wbf/Pages/index.aspx
Note: Most corporations, whether they are C or S corporations, are required to file the Combined Employer’s
Registration form for purposes of withholding and unemployment insurance taxes. Why? Because corporate officers
receiving any remuneration for their services to the corporation are considered employees of the corporation.
REPORTING AND PAYING COMBINED PAYROLL TAXES
Reporting Requirements
You must file Oregon combined payroll taxes by the due date for as long as you maintain an account (have an
active BIN) as an employer with the Oregon Department of Revenue, Employment Department, or Department of
Consumer and Business Services, even if you had no payroll for the reporting period. Payroll reports must be filed
if you had payroll, even though there may not have been any tax withheld (ORS 316.202 or OAR 150-316-0355).
For comprehensive instructions updated each year, visit www.oregon.gov/payrolltax .
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How to determine which filing requirement applies to your situation:
• Quarterly reporting due dates. Due dates are the same for your Oregon report as for the federal quarterly
return (federal Form 941). If the due date falls on a weekend or a holiday, you may file by the following day
that is not a weekend or holiday:
Quarter
Period
Ending
Return Due date
1st
Jan-Feb-Mar March 31 April 30
2nd
Apr-May-Jun June 30 July 31
3rd Jul-Aug-Sep Sept. 30 Oct. 31
4th Oct-Nov-Dec Dec. 31 Jan. 31
• Quarterly filing requirement. Most Oregon employers are required to file and pay their Oregon payroll taxes
quarterly. However, certain smaller agricultural and domestic (in-home) employers are eligible to file annually.
(See below.)
• Filing requirements for agricultural employers. Agricultural employers who file federal Form 943
(Employer’s Annual Tax Return for Agricultural Employees) may file their Oregon withholding tax reports
quarterly. To report withholding taxes annually, an agricultural employer may not have any employees who are
not classified as agricultural. State withholding tax deposits are due the same time as federal deposits.
When an agricultural employer reports withholding taxes annually, whether that employer reports other payroll
taxes annually or quarterly depends on the following:
o If the employer is subject to transit taxes, unemployment insurance taxes, or Paid Leave Oregon
contributions, all state payroll taxes other than state withholding must be reported quarterly.
o If the employer reports withholding taxes annually, and is not subject to transit taxes or unemployment
insurance taxes, but is subject to the Workers’ Benefit Fund (WBF) assessment, the WBF assessment
may be reported annually.
• Filing requirements for domestic (in-home) employers. Many domestic employers are subject only to
unemployment insurance taxes and may file quarterly using Form OQ, or annually using Form OA Domestic. If
you wish to change your filing method from quarterly to annually (or vice versa), a written request is required.
While Oregon income tax withholding is not required for household employees, this tax may be withheld if the
household employee requests this of their employer and the employer agrees. In addition to domestic employers
(e.g. sororities, fraternities, and in-home care providers) who are required by law or who choose to provide
workers’ compensation insurance for their workers, employers of all personal support workers who are eligible
for workers’ compensation insurance coverage under House Bill 3618 (2010) must report and pay the WBF
assessment on whatever schedule is used for unemployment insurance taxes.
• Annual reporting due date. Form WA, Form STT-A, Form OA Domestic, and Form OQ for agricultural
annual filers of the WBF assessment are due January 31 after the tax year.
• Annual reconciliation (Form WR) due date. Form WR is due January 31
st
and is required to be filed
electronically through Revenue Online.
• Statewide Transit Tax. Most employers and payers are required to file the STT-1 and STT-2 quarterly.
However, agricultural workers can file this form annually, and if some employers have a total tax for the year of
$50.00 or less, they can request to file annually. For more information, please visit
oregon.gov/DOR/programs/businesses/Pages/statewide-transit-tax.aspx.
Reporting Options
• Telephone (IVR) - If you have no payroll or subject hours to report for all payroll tax programs, you can file a
“no payroll/no hours worked” report by telephone, 24 hours a day, 7-days-a-week. Call 503-378-3981. The
system does not issue a confirmation number, and only accepts your report after you complete the entire call.
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• Paper - Oregon Combined Payroll Tax Reports – If you do not have access to a computer and need to request a
paper Oregon Combined Payroll Tax Report packet, call the Oregon Employment Department at 503-947-1488,
or go to http://findit.emp.state.or.us/tax/forms.cfm.
• Frances Online – File your combined payroll taxes using Frances Online with only one account to manage
payroll reporting for both unemployment insurance taxes and Paid Leave Oregon contributions. More
information is available at frances.oregon.gov.
Forms
The most convenient way to file your payroll taxes and contributions is through Frances Online. The step-by-step
process efficiently takes provided payroll information and conveys that information to the Frances reporting system.
If you choose to report using paper forms, the forms and filing instructions for filing payroll taxes can be ordered
from the Oregon Employment Department website. If you use a payroll service, you may not be familiar with this
information. Lack of familiarity with this information is not a good reason for failure to file a report or failure to
pay the tax by the due date. If you need filing information, call the Oregon Employment Department at 503-947-
1488.
Payment Address
Every December, the following year’s supply of Form OTC (Oregon Combined Tax Payment Coupon) is mailed to
registered employers who are not paying electronically. Send all payments directly to the Oregon Department of
Revenue, PO Box 14800, Salem, OR 97309-0920. Send a coupon with every payment, including payments you
make with reports. Do not substitute Form OTC for Form OQ. To learn more about paying electronically, see the
Electronic Funds Transfer (EFT) section below.
Electronic Funds Transfer (EFT)
If you have an existing account set up with EFT, you can pay through this process. We are not accepting new
accounts. You can pay electronically through Revenue Online. You can make EFT payments through Revenue
Online, DOR’s self-service site, or through your financial institution. To learn more about Revenue Online or to
make an EFT payment, visit www.oregon.gov/dor.
You must pay your Oregon combined payroll taxes electronically if you pay your federal tax liability electronically.
If you do not meet the federal requirements for mandatory participation in the EFT program, you may participate
voluntarily.
Final Payroll
If you have stopped doing business or no longer have employees, you can close your Oregon combined payroll tax
account. To close your account for withholding, unemployment insurance, and transit tax, as well as Paid Leave
Oregon purposes, the fastest, most efficient way to do so is by accessing the Business Change in Status form through
Frances Online. The electronic submittal form is located on the “Home” tab after you have logged in to your account
at frances.oregon.gov/Employer. You may also submit a paper version by filling out the Business Change in Status
form and either fax it to 503-947-1700 or mail it to the Employment Department at 875 Union Street NE Room 107,
Salem, OR 97311-0030. The form is available online at oregon.gov/DOR/programs/businesses.
Submitting a Business Change in Status request or form alone will not close your combined payroll tax account for
purposes of the WBF assessment. You remain liable for reporting the WBF assessment so long as you have active
workers’ compensation insurance in Oregon. Not all businesses choose to cancel their workers’ compensation
insurance when they cease to have payroll (particularly if they anticipate it being temporary). Therefore, the
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Department of Consumer and Business Services cannot rely on your submission of a Business Change in Status Form
alone to close your WBF assessment account.
If you have closed your business, or no longer have employees and wish to cancel your workers’ compensation
insurance policy, you must contact your workers’ compensation insurance company. Your WBF assessment account
will remain open for as long as your workers’ compensation insurance coverage is active and on file with the state of
Oregon. If you have canceled your coverage or maintain coverage with no covered individuals, you can expedite
termination of your WBF assessment reporting liability while you have no coverage or no covered workers by
completing the “Corrections and Changes Notification for WBF Assessment” form. This form is available from
DCBS by calling 503-378-2372 or by going to wcd.oregon.gov/WCDForms/211_158.pdf.
Keep Your Records
Workers’ Benefit Fund assessment-related payroll records must be kept for the current and three previous years. All
other payroll records (including withholding tax information) must be kept for at least six years after you file the
reports.
OREGON WITHHOLDING TAX
The Oregon Department of Revenue is responsible for administering the state’s withholding tax program. The
department understands that the many withholding laws, regulations, and requirements can be confusing for
employers. The following information is intended to answer employers’ questions and concerns about withholding
taxes. The department encourages you to call 503-945-8091 if you need additional information, or you may email
questions to payroll.help.dor@dor.oregon.gov.
Employers with employees who live or work in Oregon must:
• Withhold tax from employee wages at the time the wages are paid.
• Make payments using the same due dates for federal withholding tax and FICA tax deposits.
• File combined tax returns in addition to making the required payments.
If You Are an Employer
If you pay someone to work for you, you are in charge of the way the job is done, and you have the right to direct
and control the worker, the worker is probably your employee.
According to Oregon law for withholding tax purposes, an employer is defined as:
• A person or an organization for whom a worker performs a service as an employee, or
• A person who has the right to hire and fire an employee, or
• A person who provides the tools and a place to work, or
• A person who directs and controls the work of another person, or
• An officer or employee of a corporation who is responsible to comply with withholding tax provisions of the
income tax law, or
• A member or employee of a partnership who is responsible for complying with withholding tax provisions of
the income tax law.
An employer may be an individual, corporation, partnership, estate, trust, association, joint venture, or other
unincorporated organization. Religious, educational, charitable, and social organizations can also be employers,
even though such organizations may be exempt from paying tax. Government agencies—federal, state, or local—
are required to withhold tax, file reports, and make payments the same as any other employer.
Oregon withholding tax law does not specifically exempt any type of employer, but it does exempt certain types of
wage payments, (see Oregon Withholding Tax/Exempt Wages in this guide).
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Oregon requires some employers to withhold state tax even though they do not have to withhold federal tax.
For example, a worker may be recognized by the federal government as an independent contractor. However, that
same individual may be regarded by the state as an employee, and the worker’s employer is required to withhold
state income tax.
To determine payment dates for Oregon withholding tax, these employers need to figure their federal withholding
tax as if they were required to withhold it. To avoid calculating federal tax, employers may elect to pay Oregon
withholding tax after each payroll.
Oregon-Based Employers
You must withhold tax from all wages paid to Oregon resident employees, including wages earned outside of
Oregon.
You must also withhold tax from all wages paid to non-resident employees for work performed in Oregon. No
Oregon withholding is required when a non-resident employee performs work outside of Oregon.
Employers who pay wages to Oregon residents may be relieved of the duty to withhold where it can be shown to the
satisfaction of the department that each employee will receive $300.00 or less from that employer in a calendar year
(ORS 316.167, OAR 150-316-0255).
Out-of-State Employers
You must withhold tax from all wages paid to Oregon residents earned in the state of Oregon.
Employers must also withhold tax from all wages earned by non-resident employees for services performed in
Oregon, unless the earnings for the year will be less than the standard deduction for their filing status. (Non-resident
employees earning over their standard deduction are required to file an Oregon Tax return).
Non-resident employees may earn less than the standard deduction in wages but still request withholding because
they have additional Oregon income from other sources.
The Oregon Department of Revenue cannot require withholding when the services are performed for an out-of-state
employer who does not have employees working in Oregon. However, we ask employers to register and withhold
tax from wages paid to Oregon residents as a courtesy (ORS 316.167, OAR 150-316-0255).
Taxable Wages
Employers must report all taxable wages on Oregon combined payroll tax reports. Wages subject to Oregon
withholding tax include salaries, commissions, bonuses, wages, tips, fees, or any other item of value paid to an
individual for services as an employee. Property or services you give to an employee may also be taxable. Taxable
items include merchandise, stocks, bonds, room, board, or other considerations given in payment for the employee’s
services.
The value of meals or lodging furnished for the convenience of the employer is not taxable. In addition, a dwelling
furnished to a minister or a rental allowance, if the allowance is used to rent or to provide a home for the minister, is
exempt from withholding tax.
Also, an employer must withhold tax:
• On wages paid when an employer-employee relationship exists between a married couple.
• On wages paid to minors for bona fide personal services rendered to their parents.
• On payments by a corporation, including S corporations and professional corporations, to a corporate officer for
services, including guaranteed wage payments for services.
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Reimbursable Expenses
Reimbursable expenses paid to an employee are not subject to withholding tax, but you must specifically identify
such payments when wages and reimbursement of expenses are in a single payment. If an employee received a
definite hourly, weekly, or monthly salary, you must withhold tax on the entire amount, even though the amount
includes an estimate of expenses. Only reimbursement based on actual expenses is exempt from withholding tax.
Withholding on Distributions from IRAs, Annuities, and Compensation Plans
The withholding of taxes from commercial annuities, employers, deferred compensation plans, and individual
retirement plans is mandatory. However, an individual may elect to have no withholding, unless the payments are
wages (ORS 316.189).
The payee must provide a completed Form OR-W-4 showing Oregon withholding exemptions to the payer. The
payer treats the payments as wages and figures Oregon withholding using the tax tables furnished by the Oregon
Department of Revenue. The amount of withholding per payee must be $10 or more. The withholding rate for lump
sum distributions (this is a one-time only distribution) is eight percent. The payer will issue 1099-Rs to payees at the
end of the year.
Payers of a plan must register to withhold by completing the “Registration Report, Withholding on IRAs, Annuities,
and Compensation Plans” form (150-211-054). If you have a business identification number for employee payroll,
you will need a separate BIN to report and pay withholding on your distributions. You can download the
Registration Report from www.oregon.gov/DOR.
What about Farm Workers?
Employees who plant, cultivate, or harvest seasonal agricultural crops, are subject to withholding once they earn
$300 in a calendar year from a single employer. When the amount is $300 or more, the entire amount, including the
first $300, is subject to withholding tax. A seasonal agricultural crop requires an annual, or less-than-annual, season
to mature. The crop is harvested at the end of its season.
Seasonal agricultural crops include:
a. Field and forage crops
b. Seed of grasses, cereal grains, vegetable crops, and flowers
c. Bulbs and tubers of vegetable crops
d. Any vegetable or fruit used for food or feed; and
e. Holly cuttings harvested annually for Christmas sale. NOTE: Christmas trees are not considered seasonal
agricultural crops.
Employers must withhold tax on all wages of regular farm employees, even though part of their work may involve
planting, cultivating, or harvesting. Employers must withhold tax on all wages paid for such seasonal activities as
canning or other food processing, logging, and sheep shearing. Those activities are not connected with planting,
cultivation, or harvesting seasonal agricultural crops.
Labor connected with the following is not considered seasonal agricultural crops:
a. Forest products
b. Landscaping
c. Nursery stock as defined in ORS 571.005 unless planted, cultivated, and harvested within an annual period
d. Raising, shearing, feeding, caring for, training, or management of livestock, bees, poultry, fur bearing animals,
or wildlife.
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Exempt Wages
The withholding law exempts wages paid for certain kinds of services and labor. However, the wages may be
subject to Oregon income tax. If you are not sure whether the wages you pay are exempt from withholding, call
the Oregon Department of Revenue, 503-945-8100, option 2, option 1. The following is a list of the kinds of
services and labor specifically exempted:
a. Domestic services in a private home, local college club, or local chapter of a college sorority or fraternity. Write
“domestic” clearly on the wage statement (Form W-2, copy 1). This exemption does not apply to wages paid to
an employee who performs both domestic and business services for the same employer.
b. Casual labor that is not in the regular course of the employer’s business. You are required to withhold tax for
substantial labor that is not related to your business, such as the construction of a private home.
c. Persons temporarily employed as emergency forest firefighters.
d. Employee trusts that are exempt from tax under provisions of the federal Internal Revenue Code.
e. Seamen who are exempt from garnishment and attachment under Title 46 of the United States Code.
f. Active service in the armed forces.
g. Employees of air carriers who earn less than 50 percent of their compensation in Oregon, unless they are
Oregon residents.
h. Nonresident employees engaged in interstate commerce (e.g. railroad, trucking, or bus employees) having
regularly assigned duties in more than one state.
i. Services real estate salespeople provide to real estate brokers. Oregon follows federal law in permitting real
estate brokers to treat salespeople as self-employed individuals. However, the broker and salesperson must have
a contract that provides that the individual is not an employee for Oregon tax purposes. A real estate
salesperson’s income from commissions on sales is not subject to withholding by the broker.
j. Services provided by direct sellers of consumer products. See ORS 316.209.
k. A seasonal farm laborer whose total annual income from a single employer is less than $300. When the amount
is $300 or more, the entire amount, including the first $300, is subject to withholding tax. The employer may
elect to withhold 2 percent of the total wages without considering any withholding exemptions.
l. Duly ordained, commissioned, or licensed ministers of a church, when performing the duties of the ministry,
and members of a religious order when performing religious duties required by the order.
m. To or on behalf of an employee, a beneficiary of an employee or an alternate payee under or to an eligible
deferred compensation plan that, at the time of the payment, is a plan described in section 457(b) of the Internal
Revenue Code and that is maintained by an eligible employer described in section 457(e)(1)(A) of the Internal
Revenue Code.
n. Nonresident individual working on one of the following hydroelectric dams: The Dalles, McNary, John Day, or
Bonneville.
o. Nonresident individual working on a vessel operating on the navigable waters of more than one state.
p. Independent contractors as defined in ORS 670.600. See the section “Who Is an Independent Contractor?” for
independent contractor standards. For additional information go to oregon.gov/IC/.
How to Compute Withholding Tax
The Oregon Department of Revenue reviews withholding tables annually. To figure the amount of tax to withhold
from an employee’s wages:
• Use the Oregon Withholding Tax Tables. This information is available online at
oregon.gov/DOR/forms/. If you do not have internet access, you may call 503-945-8091 or 503-
378-4988.
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• For computer payroll systems, use the percentage formula in the Oregon Withholding Tax Tables,
available on the internet at oregon.gov/DOR/forms/.
Allowances
When figuring withholding tax, use the number of allowances claimed by an employee on Form OR-W-4 or IRS
Form W-4 or W-4P. If an employee did not file a Form W-4 or W-4P, use single -0- allowances.
Do not use the allowances on Form OR-W-4 or W-4 if the Oregon Department of Revenue or the IRS tells you
not to use the allowances.
The law requires employers to send a copy of Form OR-W-4 to the Oregon Department of Revenue, PO Box
14560, Salem, OR 97309, within 20 days after receiving it if the employee claims:
• More than 10 allowances for federal or state purposes, or
• Exemption from withholding, and the employee’s income is expected to exceed $200 per week for both
federal and state purposes, or
• Exemption from withholding for state purposes but not federal purposes.
Note: You must honor the Form OR-W-4 or W-4 filed by the employee until you receive a determination letter
from the Department of Revenue or the IRS.
Voluntary Withholding for Civil Service Annuitants
Civil Service annuitants who prefer voluntary withholding of state income tax from their retirement pay may make
the request in writing to: Office of Personnel Management, PO Box 961, Washington, DC 20044-0001.
Alternatively, civil service annuitants may call 800-409-6528 and use the Interactive Voice Response unit to
execute the request. The amount of withholding per annuitant must be $10 or more, per payment period.
Voluntary Withholding for Retired Members of the Armed Forces
Members of the armed services may elect to have state income taxes withheld from their retirement pay. State taxes
will be withheld upon request to the appropriate retirement pay office of a service branch. The amount of
withholding per retiree must be $10 or more per payment period. For more information, call 503-945-8091. Refer to
OAR 150-316-0320.
Common Pay Agent
Oregon law does not allow combined payroll taxes to be reported by a Common Pay Agent as defined in IRC
Section 3504.
Payment Due Dates
The due dates for paying Oregon withholding tax are the same as due dates for depositing your federal tax liability.
New employers must deposit monthly until they have a lookback period.*
GUIDELINES FOR OREGON WITHHOLDING PAYMENT DUE DATES
If your total federal tax liability is: Oregon withholding tax payments due:
• Less than $2,500 for the quarter ➔ within 30 days after the end of the quarter
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• $50,000 or less in the lookback ➔ by the 15
th
of the month following payroll
period*
• More than $50,000 in the lookback ➔ Semiweekly Deposit Schedule
period*
If the day falls on a: .............Then pay taxes by:
Wednesday, Thursday,
and/or Friday .........................the following Wednesday
Saturday, Sunday,
Monday, and/or Tuesday .......the following Friday
• $100,000 in a single pay period* ➔ within one banking day
*The lookback period is the 12-month period that ended the preceding June 30. The lookback period for agricultural
employers is the calendar year prior to the year just ended.
Alternate Payment Method
Multi-state employers who find federal withholding methods create a burden for them that other similar employers
do not share, may request a different method of withholding tax payments in writing to Withholding Manager,
Department of Revenue, 955 Center Street NE, Salem, OR 97301-2555. Include the following information: business
name of employer, Oregon business identification number, nature of burden, remedy requested, and proposed
effective date of modified withholding method. You cannot use the proposed alternative withholding method until
the Department of Revenue approves the request in writing and designates a date of a change. Refer to ORS
316.191.
Annual Withholding Reconciliation Report
All Oregon employers must electronically file an Oregon Annual Withholding Reconciliation Report (Form OR-
WR). This report is due by the last day of January after the tax year. If you stop doing business during the year, this
report is due within 30 days of your final payroll. ORS 316.202(3) and OAR 150-316-0359(3)
W-2 Forms
Employers must prepare the annual wage and tax statement (Form W-2) on the combined six-part federal-state form
or an approved substitute form. Employers must give each employee three copies of the W-2 Form no later than
January 31 of the next year.
If an employee leaves the service of an employer before the close of the calendar year and the employee requests a
copy of the wage statement, the employer must provide that wage statement to the employee within 30 days from
the last payment of wages.
If you need to correct a W-2 Form after it has been distributed, you must distribute the corrected statement, and all
copies the same way you distributed the original. If a W-2 Form is destroyed or lost, give the employee a substitute
copy and write “Reissued by employer” clearly on the form.
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Reporting W-2 information
All business and payroll service providers are required to report W-2 information electronically. Refer to OAR 150-
316-0359.
The Oregon Department of Revenue will follow the same file specification for the W-2 information as the Social
Security Administration. You can prepare and file W-2 forms or check names and social security numbers online
with the Social Security Administration.
The transmittal due date is January 31 of the current year. Form W-2 must be filed electronically only; paper W-2s
or other forms of media are not accepted. The Oregon Department of Revenue will assess penalties against an
employer if W-2 information isn’t received in a timely fashion by the department or if the Form W-2 is submitted
with incorrect or incomplete information.
The department may grant an exception to the filing requirement if the payer can prove undue hardship. Undue
hardship is based on the facts and circumstances specific to each payer and determined on a case-by-case basis.
You can view more information online.
Reporting 1099 Information
Businesses with one or more of any one type of information return (1099-MISC, 1099-K, 1099-NEC, 1099-G,
1099-R, and W-2G) are required to file electronically (OAR 150-314-0140).
The Oregon Department of Revenue will follow the same file specification for the 1099 information as the Internal
Revenue Service. View information on Filing Information Returns Electronically.
The transmittal due date is January 31 of the current year for W-2s and 1099s with information in Box 7; all other
1099s are due by March 31. The forms are filed electronically only; paper returns or other media are not accepted.
The Oregon Department of Revenue will assess penalties against an employer if an information return isn’t received
in a timely fashion by the department or if an information return is submitted with incorrect or incomplete
information.
You can view more information online.
Penalty and Interest
Employers act as trustees for their employees’ withheld taxes. As a trustee, you are subject to the same penalty and
interest for late payments or for failure to file personal income tax that applies to individuals. To avoid penalty and
interest, make your withholding payments when they are due and file your Oregon combined tax reports by the due
date.
Interest:
▪ You will be charged interest on any remaining tax not paid by the due date. Interest rates are subject to change
annually.
Penalties:
▪ You will be charged a 5 percent late-payment penalty on any unpaid tax after the payments due date.
▪ You will be charged an additional 20 percent penalty on any unpaid tax as of the due date and if FORM OQ is
filed more than one month late.
▪ You will be charged an additional 25 percent penalty if DOR determines and assesses the tax that should have
been reported by the due date.
▪ You will be charged a 100 percent penalty on unpaid tax due if Forms OQ are not filed for three consecutive
years, or 12 consecutive quarters depending on how you file.
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Failure to File
Only numerical information entered in the state withholding tax column on the Oregon combined payroll tax report
will be considered a filed return for that tax by the Oregon Department of Revenue. If you enter something other
than a number in a state withholding tax column or leave that column blank, we will conclude you are not filing a
return for purposes of state withholding tax.
If an employer is subject to, but does not file a return for, state withholding, the Oregon Department of Revenue
will assess tax based on the best information available for the period. Penalties and interest will be charged on the
amount assessed. The department may issue a warrant and garnishment to enforce collection. The amount may
become a lien against any property you own or purchase.
Dishonored Checks or Electronic Payments
The Oregon Department of Revenue may assess a penalty of $25 up to $500 on dishonored checks or electronic
payments. This is in addition to all other penalties. This penalty shall be imposed only if the employer has submitted
a prior dishonored check or electronic payment. Refer to ORS 305.228.
Bonding Requirements
An employer whose withholding tax payment is delinquent may be required for one year to post a bond in an
amount equal to the amount of tax due. The Department of Revenue may file a motion with the Oregon Tax Court
to revoke the business licenses of companies or individuals who refuse to comply with filing and payment
requirements. For more information on bonding requirements, refer to OAR 150-316-0250.
The Director of the Department of Revenue may ask other state agencies to suspend licenses per ORS 305.385.
Liability
Employers are liable for the tax required to be withheld from wages. Corporate officers, partners, or responsible
employees may be personally liable for any withholding tax a corporation or partnership fails to pay. Closing a
business does not end an individual’s liability; individuals may remain liable for the periods during which the
business paid wages even after the business has closed.
A lender, surety, or other person supplying funds to an employer to pay employee wages also may be liable for the
withholding tax under certain conditions.
Need More Information
If you have questions about Oregon withholding tax payments or returns, contact:
Oregon Department of Revenue
Business Division
PO Box 14800
Salem, OR 97309-0920
Internet: oregon.gov/DOR/programs/businesses/
Email: payroll.hel[email protected]regon.gov
Phone: 503-945-8091
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DEPARTMENT OF REVENUE OFFICES
Office Office Address
Bend 951 SW Simpson Ste. 100
Eugene 1600 Valley River Dr. Ste. 310
Gresham 1550 NW Eastman Pkwy. Ste. 220
Medford 3613 Aviation Way Ste. 102
Portland 800 NE Oregon St. Ste. 505
Salem Field 955 Center Street NE
OREGON UNEMPLOYMENT INSURANCE CONTRIBUTIONS
Employers Who Must Pay Unemployment Insurance (UI) Tax
The entire cost of unemployment insurance is supported by employers. It is based on the contributions levied on
their subject payrolls. Certain nonprofit organizations and governmental units may reimburse instead of paying the
contributions. Funds collected by the Employment Department to finance unemployment insurance are designated
by law as “taxes” or “contributions.” All contributions collected from Oregon employers are deposited in a trust
fund exclusively to pay for benefits to unemployed workers. Special Payroll Tax Offsets may be authorized by the
Oregon Legislature. These are not deposited as contributions in the Unemployment Insurance (UI) Trust Fund, but
rather are collected as part of the UI Tax rate.
Subject employers must:
▪ Get a Business Identification Number (BIN):
▪ Register your business by either submitting a request online at secure.sos.state.or.us/cbrmanager/index#stay
or submitting a completed Combined Employer’s Registration Form to the Employment Department by fax
at 503-947-1700 or by mail at 875 Union Street NE, Room 107, Salem, OR 97311-0030.
▪ File quarterly reports. Employers who employ domestic (in-home) workers may file annual reports.
▪ Pay contributions when due.
▪ Maintain adequate payroll records.
▪ Inform the Employment Department of any change in status.
▪ Inform the Employment Department of any change in address using the Business Contact Change Form.
Who is an Employee?
An employee is any person including aliens and minors employed for remuneration or under any contract of hire
unless the services are specifically excluded from coverage under the law. The definition of “employee” for this tax
comes from Oregon Revised Statute 657, which differs from common law and federal law.
Individuals who meet the statutory definition of an independent contractor are not employees and their
compensation for services is not taxable wages. The definition of an independent contractor recognized by the
Employment Department, Department of Revenue, Construction Contractors Board, Workers’ Compensation
Division (DCBS), and Landscape Contractors Board is in Oregon Revised Statute 670.600, which lists standards
that must be met to be considered an independent contractor. Individuals who do not meet the standards are
employees, and their compensation for services is taxable wages. See the section “Who is an Independent
Contractor?” in this guide for more information or visit www.oregon.gov/IC.
If you are uncertain whether to report a worker, call the Employment Department at 503-947-1488.
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Taxable Payroll
For current information, contact the Employment Department at 503-947-1488, or visit the website at
www.oregon.gov/employ/Businesses/Pages/Contributions.aspx. Taxable payroll is determined by law and may
change from year to year.
Tax Rates
Unemployment Tax Rates are assigned in accordance with Oregon Law. New employers are assigned a “base rate”
until they have had sufficient “experience” to qualify for an “experience rate”-based tax rate. This usually takes
about three years. The 2021 Oregon Legislature passed House Bill 3389, which holds experience ratings for
employers to their established 2020 experience rate for years 2022, 2023, and 2024. If an employer was at the base
rate in 2020, they will retain that rate through the 2024 cycle.
Taxable payroll includes payroll for a maximum of 12 calendar quarters proceeding July 1 of each year. The first
two quarters for which the employer is subject are not included in this computation.
Taxable payroll and the amount of unemployment benefits paid directly affect the tax rate. Each time a former
employee collects unemployment insurance benefits, the employer account is charged, unless charges are
“relieved.” Lower tax rates are assigned to employers whose unemployment charges are low in comparison to
taxable payroll. Request a quarterly statement of charges from the Employment Department by calling 503-947-
1488.
An employer’s experience rate may include the charges and payroll of all or part of any business or trade that has
been transferred, sold, or acquired. Tax rates are transferred from a former business if the new owner obtains all or
part of a trade or business including employees; such transactions must be reported to the Employment Department,
Contributions Section within 60 days of the date that the transaction became final.
Nonprofit Organizations
Nonprofit organizations are subject to Employment Department law. Each account is established as taxpaying. If
the organization qualifies under Section 501(c)(3) of the Internal Revenue Code (IRC), it may choose to reimburse
the trust fund for benefits paid instead of paying tax on its payroll.
A nonprofit organization that qualifies and elects to reimburse must post a bond or deposit with the Employment
Department in an amount determined by statute (ORS 657.505). Once a nonprofit employer has exercised either
option, it must remain in effect for two full calendar years. After that time period, a nonprofit employer may change
options by filing a written request by January 31 of the year in which they wish to change their option.
If you would like more information about differences between the two programs, you should contact the
Employment Department at 503-947-1488.
Religious Organizations
Religious organizations including schools, churches, and religious orders that qualify as subject employers under
Employment Department law must pay state unemployment contributions on compensation paid to lay employees
and clergy. As nonprofit organizations, religious organizations may elect to reimburse the fund instead of paying
contributions if they qualify under section 501(c)(3) of the Internal Revenue Code.
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Corporations
Corporations must pay unemployment insurance contributions on all compensation for services, including
compensation received by corporate officers and shareholders. S corporations and professional corporations (PCs)
are like all other corporations for unemployment insurance purposes.
Corporations may elect not to pay unemployment insurance contributions on corporate officers who are directors,
have a substantial ownership interest, and are members of the same family. A single member corporate
officer/director may be eligible for the exclusion. This exclusion request can be submitted through Frances Online
at frances.oregon.gov/Employer or by providing a paper Corporate Officer Exclusion (Form 2578) to the
Employment Department by fax at 503-947-1700 or by mail at 875 Union St. NE, Salem, OR 97310. If approved,
the exclusion will be effective on the first day of the calendar quarter in which the request is submitted.
Limited Liability Companies and Limited Liability Partnerships
Employment Department law excludes limited liability companies (LLCs) and limited liability partnerships
(LLPs) from paying unemployment insurance contributions on compensation paid to their members and
partners, regardless of their filing status with the IRS as a disregarded entity. LLC members may elect for UI
coverage by reporting and paying contributions on their wages on their quarterly payroll report or by
submitting a written Election to Cover form or reporting their wages on their quarterly payroll report. A
written Election to Cover form can be submitted through Frances Online at frances.oregon.gov/Employer or by
providing a paper Election to Cover form to the Employment Department by fax at 503-947-1700 or by mail at
875 Union Street NE Room 107, Salem, OR 97311-0030
Government Units and Political Subdivisions
Governmental entities and political subdivisions generally reimburse the Employment Department for any benefits
paid that are based on wages paid. There are other options they may choose. For additional information regarding
these options, please call the Employment Department at 503-947-1488.
Reports Due Each Quarter
In addition to the Oregon Quarterly Combined Payroll Tax report, employers subject to the Unemployment
Insurance contributions must report employee wage detail information on the Oregon Form 132. Required payroll
reports, including the Oregon Form 132, can be filed through Frances Online. Reports are due by the last day of the
month following the end of each calendar quarter.
Domestic (In-Home) Employer Reports
Employers of domestic (in-home) employees may file either annually or quarterly. Instructions on how to file
payroll reports are. provided in the Oregon Combined Payroll Tax Report Instructions for Oregon Employers
available at www.oregon.gov/employ/businesses/tax/pages/tax-forms-and-fliers.aspx
Delinquent Contributions and Late Reports
Employers who file reports after the due date, who file incorrectly formatted reports, or who fail to pay
contributions in a timely manner may be subject to various penalties. These penalties are in addition to interest and
contributions owed.
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The reimbursement payments are due by the last day of the month following the month in which the statement is
mailed. Those employers on the reimbursing basis are subject to the same penalties and interest as taxpaying
employers.
Change in Organization or Sale
Employers must notify the Employment Department of any change in the ownership of a business. Changes
included in this requirement are sale of a business, dissolution of a partnership, formation of a new partnership,
discontinuance of a corporation, dissolving of a corporation, death of an owner or partner, closing of a business, or
any other type of change. The most efficient way to submit a Business Change of Status Form is through Frances
Online. The electronic submittal form is located on the “home” tab after you have logged into your account at
frances.oregon.gov/Employer. You may also submit a paper version by filling out the Business Change in Status
form and faxing it to 503-947-1700 or by mailing it to the Employment Department at 875 Union Street NE, Salem,
Or, 97311-0030.
Employer Ceases to be Subject to UI Contributions
An employer who is subject to Unemployment Insurance (UI) contributions and ceases to have sufficient
employment or payroll to meet the requirements of ORS Chapter 657, may file a Business Change of Status through
Frances Online to update the account liability for reporting and paying UI contributions. The exemption will
continue until the employer again qualifies as an employer as defined in ORS 657.
Outreach and Education
Outreach and Education programs can be scheduled for groups of employers or tax preparers. These seminars are
designed to increase knowledge of the tax and contribution programs administered by the Employment Department
(Unemployment Insurance and Paid Leave Oregon), the Department of Revenue, and the Department of Consumer
and Businesses Services. For more information on scheduling a seminar, call 503-947-1544.
Need More Information?
Visit the website at https://www.oregon.gov/employ/Businesses/Pages/Contributions.aspx, Frances Online, call us
at 503-947-1488, TTY: 771, or fax 503-947-1487.
PAID LEAVE OREGON CONTRIBUTIONS
Paid Leave Oregon is a new program that makes sure individuals, employers, and families of every kind have the
time and support they need to care for themselves and their loved ones when they need it most.
How is Paid Leave funded?
Both employers and employees pay for Paid Leave. The Oregon Employment Department decides the contribution
rate before the beginning of each year, and it won’t be more than 1% of an employee’s gross wages. The
contribution rate for 2024 is 1%.
Here’s how it works for employers:
• Employers with 25 or more employees on average pay 40% of the 1% contribution rate. For example, if a
business has more than 25 employees and pays $1 million in payroll, it would pay a total of $10,000 in Paid
Leave contributions each year. The employer will pay 40% ($4,000) of this amount and is responsible for
collecting and submitting the other 60% ($6,000), which their employees pay through payroll withholding.
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• Employers can also choose to pay the employee portion, in full or in part, as a benefit for their employees,
• Small employers, those with fewer than 25 employees on average, don’t have to contribute the employer
contributions. However, they still need to collect and submit employee contributions.
Here’s how it works for employees:
• Employees pay 60% of the contribution rate. For example, if an employee’s paycheck totals $1,000, they
would pay $6 as their portion of contributions for that paycheck.
Which employers must participate in Paid Leave?
• All employers with Oregon employees must withhold contributions from employees’ wages and submit
them on their behalf. This includes but is not limited to:
o Religious and nonprofit organizations
o Agricultural employers
• Large employers with 25 or more employees on average must pay the employer portion of Paid Leave
contributions.
• Small employers with less than 25 employees on average do not pay the employer portion unless receive an
assistance grant. They must still collect and submit employee contributions. Learn more about what small
employers need to know about Paid Leave.
Employers with employees who work in more than one state
Generally, if an employee physically works in Oregon, then employers send contributions to Paid Leave. Employer
and employee contributions are generally required for employees that primarily work in Oregon, even if the
employee lives in another state or occasionally works in another state. Our Place of Performance Fact Sheet
provides more information.
Equivalent plans
Employers can choose to offer their employees an equivalent plan, which is a paid leave plan the Oregon
Employment Department approves. The equivalent plan must provide benefits that are equal to or greater than the
benefits Paid Leave Oregon provides. If an employer already offers paid leave to their employees or is thinking
about doing so, they must apply for an equivalent plan with the Oregon Employment Department and receive
approval. More information, including an equivalent plan checklist, is on the Paid Leave website.
Please keep in mind that an equivalent plan means:
• Employers must offer the same or more benefits than Paid Leave Oregon offers
• Employers can’t deduct more from the employee’s paycheck for contributions than the employee would
contribute to Paid Leave Oregon
• The Oregon Employment Department must approve the equivalent plan
How do employers get started?
Employers must create an account in Frances Online. Frances Online is Oregon’s payroll reporting system. Frances
Online is where employers file their payroll report and report Paid Leave contributions as well as see Paid Leave
Oregon benefit information. Use these links to learn more about creating a Frances Online account:
• Employers
• Third party administrators
Employers will need to have a few things ready when they create an account:
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• Business Identification Number (BIN)
• Federal Employer Identification Number (FEIN)
• Nonprofit Employer Identification Number (EIN)
• Payroll information from reports the employer filed within the last two years (find a list of these under
Frances Online frequently asked questions)
• Employers that don’t have payroll report data can request a verification letter from the Oregon Employment
Department
Employer responsibilities
All employers with employees working in Oregon need to:
• Post the Paid Leave model notice poster in a visible place. Employers must post the model notice poster at
each work site and provide a copy to any remote employees. Download a printable poster
• Report and submit the employer contribution if they have 25 or more employees on average
• Withhold their employees’ portion of contributions (or cover some or all those contributions for their
employees as an employer-offered benefit)
• Submit their employees’ contributions on their Oregon Combined Payroll Tax Report. If employers use a
third-party payroll administrator, or payroll company, they can take care of withholding the employees’
contributions. Make sure the third-party payroll administrator or payroll company knows how to file a
report
• File their payroll reports in Frances Online each quarter. Payroll reports are due on or before the last day of
the month following the close of the quarter. For more information, employers can review the Oregon
Combined Payroll Tax Report – Instructions for Oregon Employers.
o Agricultural employers must report quarterly for Paid Leave purposes
o Domestic employers may file an Oregon Annual Report for Paid Leave purposes if they have, on
average, less than 25 employees as calculated under OAR 471-070-3160. Annual filers must pay
their contributions on or before Jan. 31 of the following calendar year
• Pay the total contribution payment (both the employer portion (if required) and employee portion) each
quarter by making a payment through Frances Online to the Oregon Department of Revenue. Review video
instructions on how to file in Frances Online
• Give eligible employees time off if the Oregon Employment Department approves them for Paid Leave
benefits
• Hold the employee’s job and role if the employee has worked 90 consecutive days or more for the employer
before taking Paid Leave. Employees have the right to the same job they had when they left if they worked
for their employer for more than 90 consecutive days. If their job no longer exists when they return from
paid leave, and their employer has more than 25 employees, their employer must give them a similar
position when they return from leave. If their employer has less than 25 employees, they can give the
employee a different position with similar job duties and the same benefits and pay when they return
• Continue health care costs while the employee is out on Paid Leave if they worked for their employer for
more than 90 consecutive days before taking Paid Leave
If employers still have questions about employer responsibilities, they can read the Employer Guidebook, which
employers can find at paidleave.oregon.gov/resources/resources.html.
Penalties
If an employer fails to file or complete all required reports or pay all required contributions before Sept. 1 of each
year, the Oregon Employment Department will assess a penalty equal to 1% of the employee wages from the
previous calendar year. The department will notify the employer either by mail or using their preferred method,
30
mail or electronically as indicated in the department’s records, on or before Oct. 20 of the year. The penalty will
become final on Nov. 10 immediately following the assessment.
Appeals
Employers can file an appeal for the following decisions:
• Contribution amount
• Denial of an assistance grant
• Denial of an equivalent plan
• Penalties from Paid Leave
Employers have 20 calendar days to file an appeal. They can file an appeal through Frances Online or mail the
Oregon Employment Department a hearing request.
Learn more about appeals at paidleave.oregon.gov/resources/appeals.html.
Assistance grants
• Small employers with fewer than 25 employees on average can get financial help to hire a temporary
replacement employee or to help with significant wage‑related costs — like overtime or training — while
their permanent employee is on paid leave. They may qualify for a grant up to ten times per year (once per
employee)
• If Paid Leave approves a grant, the employer will need to pay the employer portion of Paid Leave
contribution for two years after Paid Leave awards a grant
Apply for assistance grants on Frances Online. Employers will need to provide documentation that shows they hired
a temporary replacement employee or proof of wage-related costs.
Learn more about assistance grants at paidleave.oregon.gov/employers/assistance-grants.html.
Who is eligible for benefits?
Eligible means someone can apply for benefits. This includes most employees in Oregon. Employees are people
who perform services for Oregon for an employer for pay or any contract, written or verbal, express or implied. In
addition, ORS 410.600 defines home care workers as employees.
• If your employee works in Oregon and made at least $1,000 in the base year before they apply for Paid
Leave, they may be eligible for benefits
• An employee’s job can be full-time, part time, or they can work for more than one employer
• Self-employed people, independent contractors, and Tribal governments aren’t automatically covered, but
can choose coverage
Who isn’t eligible for benefits?
• Participants in a work training program administered under a state or federal assistance program
• Participants in a work-study program that provides students in secondary or postsecondary educational
instructions with employment opportunities for financial assistance or vocational training
• Railroad workers exempt under the federal Railroad Unemployment Insurance Act
• Federal government employees
• Judges (as defined in ORS 260.005)
• Members of the Legislative Assembly
• Public office holders (as defined in ORS 260.005); and
• Volunteers
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Paid Leave benefits
• Employees can take up to 12 weeks of paid leave in a 52-week period (starting from the day leave begins)
for family, medical, or safe leave. If pregnant, in some situations, an employee may be able to take up to
two more weeks for a total of 14 weeks.
• Employees can choose when and how to take the time off.
• Paid Leave pays employees a percentage of their wages while they’re on leave.
• Paid leave law protects an employee’s job and role if they’ve worked for the same employer for at least 90
consecutive days before taking leave.
Paid Leave covers the following types of leave
• Family leave – to care for a family member with a serious health condition, or to care for or bond with a
new child after birth, adoption, or foster care placement within the first year.
• Medical leave – to care for yourself when you have a serious health condition.
• Safe leave – to care for yourself or your child if you or your child are survivors of sexual assault, domestic
violence, harassment, bias crimes, or stalking.
Paid Leave, the Oregon Family Leave Act (OFLA) and paid time off
If employees take Paid Leave for a qualifying event covered under both OFLA and Paid
Leave, they must take leave under OFLA and Paid Leave at the same time. However, OFLA and Paid Leave
statutes and administrative rules are different regarding the use of an employee’s earned paid time off in addition to
leave benefits provided under each program. Employers must apply the parts of statute and administrative rules that
are the most generous to the employee who is eligible to take leave for the same qualifying event under OFLA and
Paid Leave (OAR 839-009-0220).
For more information, employers can review Paid Leave and OFLA fact sheets on the Paid Leave website resources
page, or visit The Bureau of Labor and Industries (BOLI) OFLA website.
Outreach and education
The Paid Leave Oregon team is available to present at an event, to an employer’s team, or over a Zoom call to
answer questions. To request an informational presentation or have us attend an event, submit a request through our
contact form.
Contact information
Employers can find more information about Paid Leave on our website at paidleave.oregon.gov.
If employers have questions, they can contact us by online request, phone, or email.
Online request form: paidleavecontact.oregon.gov/hc/en-us/requests/new
Call: 833-854-0166 (toll-free)
Email: paidleave@oregon.gov
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TRANSIT DISTRICT TAXES
General Information
Transit district tax programs are administered by the Oregon Department of Revenue for the Tri-County
Metropolitan Transportation District (TriMet) and the Lane County Mass Transit District (LTD). They provide
revenue for mass transit (ORS Chapter 267). Transit payroll (excise) tax is imposed on nearly every employer who
pays wages for services performed in the TriMet or LTD districts. A self-employment tax is imposed on self-
employment earnings within the TriMet and LTD districts. If you are an employer and self-employed you might be
subject to both the transit tax on payroll and the transit self-employment tax on your self-employment earnings.
Service Areas
The TriMet district includes parts of three counties in the Portland area: Multnomah, Washington, and Clackamas.
LTD serves the Eugene-Springfield metro area.
TriMet Transit District ZIP Code List
To help you determine if you have employees or business activity in the TriMet Transit District, use this ZIP code
list. Some ZIP codes may not coincide with the district boundaries. For TriMet boundary questions, call TriMet at
503-962-6466 or visit www.trimet.org/taxinfo.
ZIP Codes Completely in TriMet Transit District
97003 97005 97006 97008 97024 97027 97030 97034 97035 97036 97068 97077
97201 97202 97203 97204 97205 97206 97209 97210 97211 97212 97213
97214 97215 97216 97217 97218 97219 97220 97221 97222 97223 97225
97227 97229 97230 97232 97233 97236 97239 97256 97258 97266 97267
ZIP Codes Partially in TriMet Transit District
97007 97009 97015 97019 97022 97023 97045 97060 97062 97070
97078 97080 97086 97089 97113 97116 97123 97124 97140 97224 97231
Lane Transit District ZIP Code List
This list is a guide to help determine if you have employees in the Lane Transit District. Some ZIP codes may not
coincide with the district boundaries. For Lane Transit boundary questions call 541-682-6100 or visit www.ltd.org.
City Zip Code City Zip Code
Blue River 97413 Junction City 97448
Coburg 97408 Lancaster 97448
Cottage Grove 97424 Leaburg 97489
Creswell 97426 Lowell 97452
Dexter 97431 Maywood 97413
Elmira 97437 McKenzie Bridge 97413
Eugene 97401-97405 Pleasant Hill 97455
Eugene 97408 Springfield 97475, 97477-97478
Eugene 97440 Thurston 97482
Fall Creek 97438 Trent 97431
Finn Rock 97438 Veneta 97487
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Goshen 97405 Vida 97488
Jasper 97438 Walterville 97488
Who Must File and Pay a Transit Tax on Payroll?
All employers who are paying wages in the TriMet or LTD districts and who are not exempt (see “Exempt Payroll”
below) must register and file with the Oregon Department of Revenue. City, county, and local government units are
subject to TriMet payroll taxes, if located or performing services within the TriMet boundaries.
Payments to deferred compensation plans are subject to TriMet and Lane Transit District Taxes, ORS
267.380(4)(a). The specific types of payments that are subject include:
▪ Contributions to a Simplified Employee Pension (SEP) made at the election of the employee.
▪ Payments for the purchase of IRC section 403(b) annuities under salary reduction agreements.
▪ Contributions to 401(k) retirement plans made at the election of the employee, including employer-matched
contributions.
▪ Pick-up payments to governmental retirement plans under salary reduction agreements.
▪ Amounts deferred under governmental deferred compensation plans.
▪ Any amount deferred under a nonqualified deferred compensation plan.
▪ Payments to an IRC 408 Individual Retirement Account under salary reduction agreements.
Exempt Payroll
The following are exempt from TriMet and LTD payroll excise taxes:
▪ Federal credit unions.
▪ Public school districts or Public Education districts (i.e. – Charter schools).
▪ Internal Revenue Code Section 501(c)(3) - nonprofit and tax-exempt institutions, except hospitals.
▪ All foreign insurers are exempt, including all insurance adjusters, agents, and agencies, as well as their
office support staff.
▪ Domestic service in a private home.
▪ Casual labor.
▪ Services performed outside the transit district.
▪ Seamen who are exempt from garnishment.
▪ Employee trusts that are exempt from taxation.
▪ Federal government units.
▪ Religious organizations, including churches.
▪ Wages paid to employees whose labor is solely connected to the planting, cultivating, or harvesting of
seasonal agricultural crops.
▪ Wages paid to persons temporarily employed as emergency fire fighters.
The following are exempt from LTD, but are subject to TriMet payroll excise taxes:
▪ Public education districts.
▪ Public special service and utility districts.
▪ Port authorities.
▪ Fire districts.
▪ City, county and other local government units.
NOTE: For definitions of employer and wages, see “Oregon Withholding Tax” in this guide.
34
How to Register
If you are subject to transit payroll taxes, obtain a BIN online or complete the transit payroll tax section of the
Combined Employer’s Registration Report. This is the same form used to register as an employer for withholding
and unemployment insurance tax purposes.
• Use Revenue Online. Under Quick Links, “Register and Apply”, then find BIN under
Registrations, or
• Complete the Combined Employer’s Registration form.
You may register online or complete the paper form and mail it to Oregon Department of Revenue, PO Box
14800, Salem, OR 97309-0920. The Department of Revenue will assign you a TriMet or LTD account number.
Your transit payroll tax account number will be the same business identification number you use for your Oregon
Quarterly Tax Reports.
How to Figure the Transit Payroll Excise Tax
The transit payroll tax is employer-paid and based on the gross amount of payroll paid for services performed
within the TriMet or Lane Transit districts. This includes traveling sales representatives and employees working
from home. Transit payroll tax is not deducted from employee wages. Multiply the gross taxable payroll by the
current tax rate. Current tax rates are shown on the TriMet/LTD portion of the Oregon Quarterly Tax Report.
When and How to File
Report and pay transit payroll taxes quarterly on the Oregon Quarterly Tax Report (Form OQ), in the identified
area(s). Notify the Department of Revenue immediately of any change of address.
Penalty and Interest
Penalty and interest for delinquent transit tax are the same as the penalty and interest for delinquent withholding tax.
How to Close Your Transit Payroll Tax Account
If you have stopped doing business or no longer have employees working within the TriMet or Lane Transit
districts, you can close your Oregon TriMet or LTD payroll tax account. Fill out the Business Change in Status
Form included in your quarterly reporting booklet and mail it to Oregon Department of Revenue, P.O. Box
14800, Salem OR 97309-0920.
For More Transit Payroll Tax Information
Visit our websites about the TriMet or LTD payroll tax, or review our Transit Tax Guide. You may also contact the
Department of Revenue in Salem at 503-945-8091, by email at payroll.he[email protected].gov, or visit our
website.
Who Must File and Pay a Transit Self-Employment Tax?
Anyone who has self-employment earnings from business or service activities conducted in the TriMet or Lane
transit district must pay this tax.
People who must pay the transit self-employment tax include:
▪ Anyone who does business or provides services in the district, regardless of where they live, and whose
earnings are not subject to Oregon withholding.
35
▪ Compensation received for performing religious services independently.
▪ Real estate salespeople. Federal laws generally treat real estate salespeople as self-employed, including
those who provide services to real estate brokers under contract. This means that commissions on sales are
subject to the transit tax.
A partnership as an entity is not subject to transit district self-employment tax. However, each partner is subject to
the transit district self-employment tax, and the partnership may file and pay for all the individual partners.
For More Transit Self Employment Tax Information
For more information on Tri Met or LTD self-employment tax, call Tax Help at the Oregon Department of Revenue
at 503-378-4988, 800-356-4222, or visit our website. To order forms, write to:
Forms, Oregon Department of Revenue
PO Box 14999
Salem, OR 97309-0990
STATEWIDE TRANSIT TAXES
General Information
The 2017 Oregon Legislature passed House Bill (HB) 2017, which included the new statewide transit tax. Parts of
HB 2017 related to the statewide transit tax were amended in the 2018 session.
On July 1, 2018, employers began withholding the tax (one-tenth of 1 percent or .001) from:
• Wages of Oregon residents (regardless of where the work is performed).
• Wages of nonresidents who perform services in Oregon.
The statewide transit tax is calculated based on the employee's wages as defined in ORS 316.162. Employees who
aren't subject to regular income tax withholding due to high exemptions, wages below the threshold for income tax
withholding, or other factors are subject to statewide transit tax withholding.
Who Must File and Pay Statewide Transit Tax?
Oregon employers are responsible for:
• Withholding the tax from employees' wages.
• Reporting taxes withheld on a quarterly or annual return.
• Remitting taxes withheld quarterly or annually.
• Reconciling quarterly or annual reports on the annual reconciliation return (Form OR-WR).
If you don't withhold this tax appropriately or file and pay on time, you may be subject to penalties and interest. We
can assess penalties for knowingly failing to deduct and withhold the tax of $250 per employee, up to $25,000 for
each tax period, in addition to other penalties and interest authorized by state law.
36
Oregon residents who perform services outside of Oregon can ask their out-of-state employer to withhold the tax
from their wages as a courtesy—similar to income tax withholding. However, we can't require out-of-state
employers to do so, as they're outside Oregon's taxing jurisdiction.
Agricultural employers may file returns and make payments for this tax annually, as they do with their income tax
withholding.
Oregon employers must report withheld amounts of statewide transit tax in Box 14 of the employee’s W-2.
Exempt Payroll
The following are exempt from statewide transit tax:
a. Domestic services in a private home, local college club, or local chapter of a college sorority or fraternity. Write
clearly “domestic” on the wage statement (Form W-2, copy 1). This exemption does not apply to wages paid to an
employee who performs both domestic and business services for the same employer.
b. Casual labor that is not in the regular course of the employer’s business. You are required to withhold tax for
substantial labor that is not related to your business, such as the construction of a private home.
c. Persons temporarily employed as emergency forest firefighters.
d. Employee trusts that are exempt from tax under the provisions of the federal Internal Revenue Code.
e. Seamen who are exempt from garnishment and attachment under Title 46 of the United States Code.
f. Active service in the armed forces.
g. Employees of air carriers who earn less than 50 percent of their compensation in Oregon, unless they are Oregon
residents.
h. Nonresident employees engaged in interstate commerce (e.g. railroad, trucking, or bus employees) having
regularly assigned duties in more than one state.
i. Services real estate salespeople provide to real estate brokers. Oregon follows federal law in permitting real estate
brokers to treat salespeople as self-employed individuals. However, the broker and salesperson must have a contract
that provides that the individual is not an employee for Oregon tax purposes. A real estate salesperson’s income
from commissions on sales is not subject to withholding by the broker.
j. Services provided by direct sellers of consumer products. See ORS 316.209.
k. A seasonal farm laborer whose total annual income from a single employer is less than $300. When the amount is
$300 or more, the entire amount, including the first $300, is subject to withholding tax. The employer may elect to
withhold 2 percent of the total wages without considering any withholding exemptions.
l. Duly ordained, commissioned, or licensed ministers of a church, when performing the duties of the ministry, and
members of a religious order when performing religious duties required by the order.
m. To or on behalf of an employee, a beneficiary of an employee or an alternate payee under or to an eligible
deferred compensation plan that, at the time of the payment, is a plan described in section 457(b) of the Internal
Revenue Code and that is maintained by an eligible employer described in section 457(e)(1)(A) of the Internal
Revenue Code.
n. Nonresident individual working on one of the following hydroelectric dams: The Dalles, McNary, John Day, or
Bonneville.
o. Nonresident individual working on a vessel operating on the navigable waters of more than one state.
p. Independent contractors as defined in ORS 670.600. See the section “Who Is An Independent Contractor?” for
independent contractor standards. For additional information go to www.OregonIndependentContractors.com.
37
When and How to File
Report and pay statewide transit payroll taxes quarterly on the Oregon Quarterly Statewide Transit Tax Withholding
Return (STT-1) and the Statewide Transit Tax Employee Detail Report. The quarterly due dates are the same as the
Withholding and Transit taxes. Notify the Department of Revenue immediately of any change of address.
Note: State transit taxes will be filed on the updated Oregon Quarterly Statewide Transit Tax Withholding Return
beginning in the first quarter of 2023.
Penalty and Interest
Penalty and interest for delinquent statewide transit tax are the same as the penalty and interest for delinquent
withholding tax. For more information about penalties and interest rates, see page 20 in this guide.
How to Close Your Payroll Tax Account
If you have stopped doing business or no longer have employees fill out the Business Change in Status Form found
at www.oregon.gov/dor and mail it to Oregon Department of Revenue, P.O. Box 14800, Salem OR 97309-0920.
38
TAX LIABILITY REFERENCE CHART
These tax liability tables are provided as a quick reference for determining the tax liability for state unemployment
tax, state withholding tax, and transit district tax for certain types of wages. This chart is not all-inclusive and
should be used as a reference only. Note: Because it is based on hours worked, not wages, this table does not
address liability for the Workers’ Benefit Fund assessment. See the section on Workers Benefit Fund (WBF)
Assessments for more information.
WAGES
PAID
FOR
STATE
UNEMPLOYMENT
INSURANCE TAX
STATE
WITHHOLDING
TAX
TRANSIT TAX FOR
WAGES PAID IN
DISTRICT
Agricultural Labor
Subject if the employer paid cash
wages of $20,000 or more in any
calendar quarter to workers doing
agricultural labor, or
Subject if the employer has 10 or
more workers doing agricultural
labor on 20 days during a calendar
year, each day being a different
week.
See ORS 657.045 for the
definition of agricultural labor.
A farm laborer whose total
annual income from a single
employer is less than $300 is not
subject. When the amount
exceeds $300, the entire amount,
including the first $300, is
subject to withholding.
ORS 316.162
OAR 150-316-0237
The employer may elect to
withhold 2 percent of the total
wages without considering any
withholding exemptions.
ORS 316.167
Wages paid for such seasonal
activities as canning or other
food processing, logging, and
sheep shearing which are
performed within the transit
districts are subject.
Wages paid to employees, whose
labor is solely connected to the
planting, cultivating or
harvesting of seasonal
agricultural crops are exempt.
ORS 267.380
Cafeteria Plans
Reported quarterly. Payment
made through cafeteria plans are
considered wages, unless
specifically excluded under
Oregon law. See other specific
payment references made in this
table.
Not subject
ORS 316.162(2) (L)
Not subject
ORS 267.380
Corporation
(compensation)
Corporations must report and pay
taxes on compensation for
services including services
performed by corporate officers
and shareholders (see pages 18-19
for exceptions)
Compensation for services is
subject to withholding, including
services performed by corporate
officers and shareholders.
ORS 316.162
Compensation for services is
subject to transit taxes, including
services performed by corporate
officers and shareholders.
ORS 267.380
S corporations and professional
corporations are treated the same
as other corporations.
S corporations and professional
corporations are treated the same
as other corporations.
S corporations and professional
corporations are treated the same
as other corporations.
Dividends are reportable to the
extent they are reasonable
compensation for services.
Dividends are not subject to
withholding.
Dividends are not subject to
withholding.
Dismissal/Severance Pay
Subject
Subject ORS 316.162
Subject ORS 267.380
Domestic Service in a
Private Home, Fraternity
or Sorority
Subject if employer paid cash
wages of $1,000 or more in any
calendar quarter to workers doing
domestic service. Reported
quarterly or annually.
See ORS 657.050 for the
domestic service definition.
Not subject. However, Oregon
income tax can be withheld if the
household employee asks you to
withhold and you agree.
ORS 316.162(2) (c)
OAR 150-316-0237(3)
Not subject
ORS 267.380
Family Employee: son or
daughter under 18
employed by parent;
spouse employed by
Not subject. ORS 657.060
Subject. ORS 316.162
OAR 150-316-0237
Subject
ORS 267.380
39
spouse; parent employed
by son or daughter
WAGES
PAID
FOR
STATE
UNEMPLOYMENT
INSURANCE TAX
STATE
WITHHOLDING
TAX
TRANSIT TAX FOR
WAGES PAID IN
DISTRICT
Fishing (Commercial)
Exempt if crew is normally fewer
than 10 and paid a share of the
catch or share of the proceeds
from the sale of the catch.
ORS 657.053
Employees engaged in fishing as
defined by Title 46 of the United
States code, are exempt.
ORS 316.162(2)
Employees engaged in fishing as
defined by Title 46 of the United
States code, are exempt.
ORS 316.162(2)
Insurance Agents or
Solicitors
Not subject to the extent that the
person is compensated by
commissions. ORS 657.085
Not subject if self-employed and
paid solely by commissions.
OAR 150-316-0237
Only domestic insurance
companies (insurers actually
underwriting policies), health
care service clubs are subject.
All foreign insurers are exempt,
including all insurance adjusters,
agents and agencies, as well as
their office support staff.
Interstate Common
Carriers (for hire)
Transportation performed by
motor vehicle for a for-hire carrier
and who personally operates,
furnishes, and maintains the
equipment and provides the
services, is exempt.
In addition, the person who
furnishes, and maintains the
vehicle is deemed the employer of
others who operate it.
ORS 657.047
Nonresident employees engaged
in interstate commerce, (e.g.,
railroad, trucking, or bus
employees) having regularly
assigned duties in more than one
state are not subject to Oregon
tax. ORS 316.162
OAR 150-316-0237
Nonresident employees of
interstate common air carriers
having regularly assigned duties
on aircraft are not subject to
Oregon tax if scheduled flight
time in Oregon is less than 50%
of the total scheduled flight time.
Nonresident employees engaged
in interstate commerce, (e.g.,
railroad, trucking, or bus
employees) having regularly
assigned duties in more than one
state are not subject to Oregon
tax.
Nonresident employees of
interstate common air carriers
having regularly assigned duties
on aircraft are not subject to
Oregon tax if scheduled flight
time in Oregon is less than 50%
of the total scheduled flight time
Meals and Lodging
Subject except when paid for
agricultural labor or domestic
service, or for employee travel
expenses excluded under OAR
471-31-0020
Meals – subject unless furnished
for employer’s convenience and
on the employer’s premises
OAR 150-316-0237
Lodging – subject unless
furnished on employer’s
premises, for the employer’s
convenience and as condition of
employment
Meals – subject unless furnished
for employer’s convenience and
on the employer’s premises
Lodging – subject unless
furnished on employer’s
premises, for the employer’s
convenience and as condition of
employment
Newspaper Carrier
Delivering to Customers
Not subject. ORS 657.080
Not subject. ORS 657.080
Not subject. ORS 657.080
Real Estate Broker, or
Principal Real Estate
Brokers
Not subject if paid solely by
commissions. ORS 657.085
Oregon follows federal law in
permitting real estate salespeople
to be treated as self-employed
individuals if they have a
contract with a broker that
provides that the individual will
not be treated as an employee
with respect to the services for
Oregon tax purposes. Income
If not subject to state
withholding, not subject to
transit taxes.
40
from commissions on sales is not
subject to withholding by the
broker.
OAR 150-316-0237
WAGES
PAID
FOR
STATE
UNEMPLOYMENT
INSURANCE TAX
STATE
WITHHOLDING
TAX
TRANSIT TAX FOR
WAGES PAID IN
DISTRICT
Religious Organizations
Including Churches
Pay for services (including fair
market value of housing) to lay
employee or clergy by a religious
organization including a church or
religious order is subject.
OAR 471-31-090
Duly ordained, commissioned or
licensed ministers of a church,
when performing the duties of
the ministry, and members of a
religious order, when performing
religious duties required by the
order are exempt.
OAR 150-316-0237
Not subject
Retirement and Pension
Plans:
Employer contributions to
individual retirement
account
Not subject
Not subject ORS 316.162
Not subject
Employer contributions to
qualified cash or deferred
compensation plan
Employer-paid contributions to
401(k) plans are excluded
Not subject ORS 316.162
Not subject unless employer is
making a matching 401(k)
contribution (see page 28)
Retirement and pension
payments
Not subject if from qualified plan.
ORS 657.115
Not subject if qualified plan
ORS 316.189
Not subject
Contributions to deferred
compensation plans at
election of employee
Employee-paid contributions to
401(k) plans are subject
Not subject ORS 316.162
Subject ORS 267.3840(4)(a)
Securities Salesperson
Not subject if paid solely by
commissions. ORS 657.085
Subject ORS 316.162
Subject
Sickness or injury
payments:
Worker’s compensation
Not subject
Not subject ORS 316.162
Not subject
Employer payment of sick
pay (voluntary or
mandatory)
Subject
Subject OAR 150-316-0239
Subject
Third-party payment of
sick pay
Subject
Not subject
Not subject
Tips
Subject, for all tips reported in
writing to employer.
ORS 657.117
Tips reported to the employer
whether cash or credit card are
subject to withholding. All tips
are subject to income tax.
Subject
Wages
Wages are subject when paid and
include all cash and non-cash
remuneration for employment.
Agricultural and domestic wages
include only cash
Employers must withhold tax
from employees’ wages at the
same time employees are paid.
ORS 316.162
Subject ORS 267.380
41
Draws/Advances on salary or
employee wages are subject at
the time they are paid.
42
WORKERS’ BENEFIT FUND (WBF) ASSESSMENT
One of the responsibilities of the Department of Consumer and Business Services (DCBS) is to administer Oregon’s
workers’ compensation laws and system. As part of this role, DCBS is responsible for administering the Workers’
Benefit Fund. This fund pays for programs that encourage the employment and re-employment of previously
injured or handicapped workers, offers Oregon employers monetary incentives to hire or rehire Oregon injured
workers, and pays monthly cost-of-living increases to permanently and totally disabled workers and to the spouses
and children of workers who have died as the result of an occupational injury or disease. The WBF assessment, paid
jointly by workers and employers, funds the Workers’ Benefit Fund. Employers contribute half of the WBF
assessment and deduct half from their workers’ wages.
Who Reports and Pays the WBF Assessment
Oregon law links who is subject to the WBF assessment to employers and workers who have (or, by law, should
have) workers’ compensation insurance coverage. Individuals subject to the WBF assessment are 1) all paid
workers for whom the employer is required by Oregon law to provide workers’ compensation insurance coverage
(see section, “Obtain Workers’ Compensation Insurance” in this guide); 2) all paid individuals (workers, owners,
officers) that may otherwise be non-subject, but whom the employer chooses to cover under workers’ compensation
insurance; and 3) all paid individuals performing personal support work who are eligible for workers’ compensation
insurance coverage under House Bill 3618 (2010).
Employers are not required to report the hours worked or pay the WBF assessment for volunteer workers even when
they are covered by workers’ compensation insurance. Volunteers are workers who receive no money for the work
they perform.
IMPORTANT: The WBF assessment is separate from workers’ compensation insurance and does not provide
coverage to employees. You must obtain a workers’ compensation policy to provide coverage for your workers.
How to Calculate the WBF Assessment
The WBF assessment is based on the total number of hours and partial hours worked by all paid workers (whether
paid by the hour or on a basis other than by the hour). These hours are multiplied by a “cents per hour” rate that is
determined and set annually by the Department of Consumer and Business Services. Employers contribute at least
half of the assessment and deduct no more than half from their workers’ wages.
Reporting and Paying
Employers report and pay the WBF assessment with Oregon withholding tax, unemployment insurance tax, and
applicable transit taxes using the Oregon Combined Payroll Tax report (Form OQ) and payment coupon (Form
OTC). If you report and pay quarterly any of the other payroll taxes to which you are subject, you also report and
pay the WBF assessment quarterly. If the only other payroll tax to which you are subject is reported and paid
annually, you report and pay the WBF assessment annually.
Annual reporting of the WBF assessment generally applies only to agricultural employers who are not subject to
unemployment insurance or transit taxes and report withholding taxes annually, and to domestic employers that
report all their payroll taxes annually.
Employers with “ghost” or “if any” policies may be exempted from reporting and paying the WBF assessment for
as long as they continue to have no covered workers. To obtain a WBF assessment reporting exemption, complete a
Corrections and Changes Notification Form. This form is available at www.oregon.gov/dcbs/wbf/ or by calling 503-
947-7589.
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Late or Incorrect Payments and Reports
Employers may be subject to a late filing penalty and interest on unpaid balances, if the WBF assessment report is
filed or payment is received after the due date. In addition, DCBS audits accounts that appear to report incorrectly.
DCBS has the authority to assess civil penalties, to estimate WBF assessments owed, and to enforce those
estimations by order. If you fail to pay, DCBS will exercise legal rights to collect the delinquent debt. This may
result in warrants, garnishments, offsetting your tax refund, or assigning the debt to DOR or a collection agency. If
your debt is assigned to collections, you will be charged nine percent interest on overdue balances. You may also be
charged a fee totaling 28 percent of your debt (ORS 293.231).
How to Update or Close Your WBF Assessment Account
The process to update or close an employer’s WBF Assessment account is different from other payroll tax accounts
in the Combined Payroll Tax Reporting System. If you change ownership, discontinue business, or cease to employ
workers, contact your workers’ compensation insurance company with the corrected information. Filing a Business
Change in Status Form will not close the WBF Assessment account. You remain liable for reporting the WBF
assessment as long as you have active workers’ compensation insurance in Oregon. Not all businesses choose to
cancel their workers’ compensation insurance when they cease to have payroll, particularly if they envision the
situation to be temporary.
If you have cancelled your coverage, you can expedite closure of your WBF Assessment account by completing the
“Corrections and Changes Notification for WBF Assessment” form, located online at
https://wcd.oregon.gov/WCDForms/211_158.pdf.
Need More Information?
For more information about the WBF assessment, contact the Department of Consumer and Business Services,
Central Services Division, Assessments Unit, by email at wbf.assessments@dcbs.oregon.gov, by phone at 503-378-
2372, or visit www.oregon.gov/dcbs/wbf/. The website includes information about programs funded by the
Workers’ Benefit Fund, how to update or close your WBF assessment account, and answers to the most frequently
asked questions about how to calculate, report, and pay the WBF assessment.
EMPLOYEE FEDERAL TAX WITHHOLDING (W-4 FORM)
W-4 Form
Employers are required to have each employee complete a W-4 Form. The information on this form is necessary to
determine the amount of withholding tax for an employee. For a supply of forms, contact your local Internal
Revenue Office or call toll-free 800-829-3676, or go online.
Internal Revenue Service
The federal tax information provided in this publication is by no means all-inclusive. For complete requirements
and responsibilities, contact the Internal Revenue Service.
Internal Revenue Service
1220 SW Third Avenue
Portland, OR 97204
www.irs.gov
For tax assistance, call 800-829-1040.
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To order forms or publications, call 800-829-3676.
Who Must Withhold Federal Taxes?
The criteria for defining an employer for federal purposes are similar to those used for state withholding tax
purposes. For income tax withholding purposes, the term “employer” also applies to organizations that may be
exempt from income tax, such as religious, educational, charitable, and government organizations. Certain nonprofit
and tax-exempt organizations, previously exempt from Social Security withholding, are now required to withhold
Social Security tax from employees for wages earned. Most employers must withhold and pay their share of Social
Security tax. For more information, consult IRS Publication 15 - Employers Tax Guide.
Social Security and Medicare Taxes
The computation of Social Security tax is separated into two parts. The old age, survivors, and disability insurance
part is referred to as Social Security. The hospital insurance part is referred to as Medicare. You must report each of
these items separately on Forms 941 and W-2.
The tax rate for Social Security is 6.2 percent each for employers and employees (12.4 percent total). The tax rate
for Medicare is 1.45 percent each for employers and employees (2.9 percent total). All wages will be subject to the
2.9 percent total Medicare tax. Employers must also withhold a 0.9% Additional Medicare tax from wages paid to
an employee in excess of $200,000 in a calendar year. For more information on wages that are subject to Social
Security and Medicare taxes, please consult IRS Publication 15 - Employers Tax Guide.
Reporting Requirements
Agricultural employers must now withhold federal income tax on cash wages that are subject to FICA. Employers
(other than agricultural and household) are required to report withholding taxes (federal income and Social
Security) quarterly, using Form 941. Due dates for the form are April 30, July 31, October 31, and January 31.
Payment of withheld taxes is determined by the amount of the tax liability incurred. Liability for payment (and
reporting) is incurred on the date wages are paid, regardless of when they were earned.
Tax liability consists of the federal income tax withholding, 12.4 percent of Social Security wages (subject to wage
base limitations) and 2.9 percent of Medicare wages for the calendar year.
Deposit Schedules & Electronic Federal Tax Payment System (EFTPS)
The paperless way to make your federal tax deposit is the Electronic Federal Tax Payment System.
EFTPS is an electronic service of the U.S. Dept. of the Treasury that allows online or by phone federal tax
payments without the hassle and expense of the manual process that use paper coupons. Visit us online.
To enroll online, at least 15 to 20 days prior to your tax payment due date, you will need to go to the EFTPS
website and select the enrollment tab. You will need to provide the following information:
• An employer identification number (EIN) for a business, or a Social Security number (SSN) for an
individual.
• A check or deposit slip for the account to debit your government tax payment. Use the check or deposit slip
to identify the bank’s Routing Transit Number and your account number.
While your account is being set up, a temporary password is sent to you by mail that you will use (together with
your EIN or SSN and the personal identification number (PIN) you selected) to login or call to make a payment.
To enroll by paper, at least 23-30 days prior to your tax payment due date, call the IRS Distribution Center at 800-
829-3676 to request enrollment forms, and mail the appropriate business or individual enrollment forms to: EFTPS,
PO Box 173788, Denver, CO, 80217-3788.
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The forms require your employer identification number (EIN) for business or Social Security number (SSN) for
individuals. Refer to the check or deposit slip for the account from which you wish to debit your government tax
payment. Use the check or deposit slip to identify the bank’s Routing Transit Number and your account number.
While your account is being set up, a temporary password is sent to you by mail that you will use together with your
EIN or SSN and the personal identification number (PIN) you selected, to login or call to make a payment.
How do I make a payment?
At least one day prior to your tax payment due date (before 8 a.m. Eastern time), visit the EFTPS website and select
login or call 800-555-3453 for a business payment or 800-315-4829 for an individual’s tax payment. You’ll be
prompted for your EIN or SSN, your PIN, and your password. You’ll then provide the information necessary to
complete the transaction.
Where can I get more information online?
The EFTPS website has a FAQ section located in the left-hand menu, which covers a variety of topics. In addition,
you can download the EFTPS instruction booklet.
Who can I call for more information?
EFTPS Customer Service by phone for businesses: 800-555-4477
EFTPS Customer Service by phone for individuals: 800-316-6541
Am I protected?
Yes. Visit the EFTPS website and select the Help & Information tab for security and disclosure/privacy statement
information.
Payment is required as follows:
There are two deposit schedules—monthly or semiweekly—for determining when you deposit Federal employment
and withholding taxes (other than FUTA taxes). The deposit schedule for a calendar year is determined from the
total taxes reported on Form 941 in a four-quarter look back period (July 1 of the second preceding calendar year
through June 30 of last year).
• If $50,000 or less of employment taxes has been reported for the look back period, you are a monthly depositor.
• If more than $50,000 was reported, you are a semiweekly depositor.
There are two exception rules, the $2,500 rule and the $100,000 one-day rule (see below):
New employers during the first calendar year of business have a look back period of zero. Therefore, new
employers are monthly depositors for the first year of business (however, see the $100,000 one-day rule
exception).
Under the monthly rule, employment taxes withheld on payments made during the calendar month must be
deposited by the 15
th
day of the following month. Monthly depositors should not file Form 941 monthly; it remains
quarterly.
Under the semiweekly rule, employment taxes withheld on payments made on Wednesday, Thursday, and/or
Friday must be deposited by the following Wednesday. Amounts accumulated on payments made on Saturday,
Sunday, Monday and/or Tuesday must be deposited by the following Friday.
PAYMENT DAYS/DEPOSIT PERIOD
DEPOSIT BY
Wednesday, Thursday and/or Friday
following Wednesday
Saturday, Sunday, Monday and/or Tuesday
following Friday
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$2,500 Rule
If an employer accumulates less than a $2,500 tax liability during a quarter, no deposits are required, and this
liability may be paid with the tax return for the quarter.
$100,000 One-Day Rule
If the total accumulated tax reaches $100,000 or more on any day during a deposit period, it must be deposited by
the next banking day, whether an employer is a monthly or semiweekly depositor.
If a monthly depositor accumulates a $100,000 employment tax liability on any day, the employer becomes a
semiweekly depositor on the next day and remains so for at least the remainder of that calendar year and for the
following calendar year.
Agricultural Employers
Agricultural employers are required to report withholding taxes (federal income, Social Security, and Medicare)
annually, using Form 943. For more information on special rules for agricultural employers and for deposit
requirements, consult IRS Publication 51.
Non-Payroll Items
Non-payroll items (including withholding for pension, annuities, IRAs, and gambling winnings) will be reported on
Form 945, Annual Return of Withheld Federal Income Tax. Form 945 is an annual tax return, and the return is due
on or before January 31 of the following year.
Electronic Deposit of Taxes
The IRS has issued regulations that significantly increase the number of electronic transactions between taxpayers
and the federal government. The regulations (REG 153340-09) eliminate the rules for making federal tax deposits
by paper coupon. The proposed regulations generally maintain existing rules for depositing federal taxes through
the Electronic Federal Tax Payment System (EFTPS). Using EFTPS to make federal tax deposits provides
substantial benefits to both taxpayers and the government. EFTPS users can make tax payments 24 hours a day,
seven days a week, from home or office. Deposits can be made online with a computer or by telephone. EFTPS also
significantly reduces payment-related errors that could result in a penalty. The system helps taxpayers schedule
dates to make payments even when they are out of town or on vacation when a payment is due. EFTPS business
users can schedule payments up to 120 days in advance of the desired payment date. Information on EFTPS,
including how to enroll, is found online, or by calling Customer Service at 800-555-4477.
Some businesses paying a minimal amount of tax may make their payments with the related tax return, instead of
using EFTPS. More details regarding taxes required to be deposited using EFTPS, dollar thresholds, and other
specific requirements are in the proposed regulations.
Additional Information:
• Publication 4132 explains the process of enrolling and paying via the Internet.
• Publication 966, The Secure Way to Pay Your Federal Taxes for Businesses and Individuals.
• Publication 4169, Tax Professional Guide to Electronic Federal Tax Payment System.
• Publication 4320, the EFTPS Toolkit, contains PDF(s) and descriptions of EFTPS educational materials and
their intended target audience, and is for use by tax professionals and financial institutions to assist in
educating their clients on the benefits of EFTPS.
• Publication 4275, Express Enrollment for New Businesses.
• Electronic Payment Options Home Page.
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If you are required to make deposits by electronic funds transfer and fail to do so, you may be subject to a 10%
penalty. Use EFTPS to deposit taxes reported on any of the following tax forms: 720, 940 or 940-EZ, 941, 943, 945,
990-C, 990-PF, 990-T, 1041, 1042, 1120 or 1120-A, and CT-1.
Employers who are not required to make electronic deposits may voluntarily participate in EFTPS. For information
on EFTPS, call 800-945-8400 or 800-555-4477. These numbers are for EFTPS information only. To enroll and use
EFTPS-online, go to www.eftps.gov.
Annual and Final Reporting
File Forms W-2 and W-3, Transmittal of Income and Tax Statements, with the Social Security Administration. The
IRS does not require annual reporting. An employer who is terminating business or who will have no employees in
the future should check the final return box and enter the date the final wages were paid on Form 941.
Penalties and Interest
Interest is charged on all taxes not paid by the due dates of Form 941. The interest rate varies. Penalties are assessed
for failure to report, failure to file, and failure to pay. Employers who incur a liability in excess of $2,500 per
quarter are required to make federal tax deposits. For more information, consult IRS Publication 15.
Who Pays Federal Unemployment Tax?
Generally, any employer who in the current or preceding year paid wages of $1,500 or more in any calendar quarter,
or at any time had one or more employees in any of 20 calendar weeks, must pay federal unemployment tax. The
federal unemployment tax rate is 6.2 percent of the first $7,000 of each employee’s wages. The employer is allowed
a 5.4 percent tax credit, regardless of the applicable experience rate, for timely payment of state unemployment tax.
Reporting
Federal Unemployment Tax Returns are due on or before January 31st of the following year. Employers whose
federal unemployment tax liability equals or exceeds $100 per quarter must make federal tax deposits. The amount
to be deposited is computed by multiplying .008 by the first $7,000 of each employee’s wages paid during the
quarter.
How to get Forms
To get forms, publications, or answers to questions, contact your local IRS office. Once an employer begins to file
Form 941 and make federal tax payments, the forms will be mailed automatically. Forms can also be obtained by
calling 800-829-3676 or going to www.irs.gov.
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IMMIGRATION & NATURALIZATION I-9 FORMS
General Information and Resources
Employers are required to have each employee complete an employment eligibility verification form (I-9 Form)
supplied by U.S. Citizenship and Immigration Services. Unlike tax forms, I-9 forms are not filed with the U.S.
government. Employers are required to maintain I-9 records in their own files for 3 years after the date of hire or 1
year after the date of the employee’s employment is terminated, whichever is later. This means that Form I-9 needs
to be retained for all current employees, as well as terminated employees whose records remain within the retention
period. Form I-9 records may be stored at the worksite to which they relate or at a company headquarters (or other)
location, but the storage choice must make it possible for the documents to be transmitted to the worksite within 3
days of an official request for production of the documents for inspection.
When filling out an I-9 Form, employees must show their employer proof that they are a United States citizen or
that they have permission to work in the United States. A Handbook for Employers: Instructions for Completing
Form I-9 provides complete instructions for the verification process and completing the forms. The I-9 Resources
website includes the form, the Handbook, and other resources.
You may request both the forms and the handbook explaining the rules and regulations regarding I-9 Forms by
leaving a request on the forms line listed below. If you have other questions, call the general information number.
US Citizenship & Immigration Services
511 NW Broadway, Room 17
Portland, OR 97209
800-375-5283 (general information)
800-870-3676 (to request blank forms)
OREGON CHILD SUPPORT PROGRAM
New Hire Reporting
The Oregon Department of Justice Division of Child Support administers the Child Support Program. References to
the Division of Child Support and the Child Support Program are interchangeable for the purposes of employer
responsibilities related to reporting, withholding, and submitting child support payments.
Oregon law (ORS 25.790) requires all Oregon employers to report new and rehired employees and engaged and
reengaged independent contractors, to the Oregon Department of Justice, Division of Child Support within:
• 12 to 16 days, if transmitting the data electronically through the Oregon Employer Services Portal
accessible from OregonChildSupport.gov/employers.
• 20 days if submitting the new hire form by another method. A fillable New Hire Reporting form is available
here.
“Rehire” means to re-employ any individual who was laid off, separated, furloughed, granted leave without pay, or
terminated from employment for more than 60 days.
“Reengage” means to engage an independent contractor who previously performed services as an independent
contractor for the employer but who has not performed services for the employer within the previous 60 days.
Reporting this information helps in collection of child support by allowing timely issuance of Income Withholdings
for Support (IWO) and National Medical Support Notices (NMSN) and can be completed through the secure online
Oregon Employer Services Portal. This information is used nationwide to match employment for non-custodial
parents with a child support case. It is also used to detect fraud in public assistance cases, workers’ compensation
cases, unemployment, and Paid Leave Oregon benefits.
49
For questions about reporting requirements, contact ChildSupportEmployerServi[email protected]s.
Electronic Funds Transfer (EFT)
Employers doing business in Oregon and employers with registered agents in Oregon who have received an
Withholding Income for Support notice must send child support payments to the Department of Justice, Division of
Child Support by Electric Funds Transfer (EFT) (OAR 137-055-5035).
There are two methods to send payments electronically:
• ACH Credit – The business authorizes a bank-to-bank transaction between themselves and the Oregon
Child Support Program. Financial institutions may charge a fee when using the ACH option.
• ACH Debit (Oregon Employer Services Portal) – The business authorizes the Department of Justice
Division of Child Support to debit its bank account using a secure web-based debit transaction process.
For questions about electronic funds transfer, contact ACHEmployerQuestions@doj.state.or.us.
For additional information on the laws pertaining to employers and their obligations, contact:
Employer Services
Oregon Child Support Program
PO Box 14680
Salem, OR 97309
Phone: 866-907-2857
Fax: 877-877-7415
Email: ChildSupportEmployerSe[email protected]tate.or.us
Website: OregonChildSupport.gov/employers
CONTACT BUREAU OF LABOR AND INDUSTRIES (BOLI)
Services Offered
The Bureau of Labor and Industries (BOLI) provides resources to help Oregon employers understand and follow
employment and civil rights laws. This includes information on wage and hour laws, the employment of minors,
various leave laws, discrimination protections, and disability law.
BOLI’s web address is www.oregon.gov/boli. Employers can find answers to their questions and download forms
and applications. Click the “For Employers” tab for information about BOLI seminars, publications, laws and
regulations, and answers to the most frequently asked questions.
Employer Assistance at BOLI provides support to employers by phone and email: 971-361-8400 or
employer.assist[email protected].gov. Employer Assistance also offers a regular seminar schedule on various
employment law topics. Employers can contract with Employer Assistance for customized trainings direct to their
organizations. Topics include Effective Supervision; Wage and Hour Laws; Oregon and Federal Leave Laws;
Workplace Harassment; Recordkeeping Requirements; Legal Hiring Practices; Policy Writing; Documentation,
Discipline and Discharge; and a New Supervisor Training series. Note: there are fees for the seminars and direct-to-
business training services. View seminar schedules and descriptions, as well as costs and registration information,
on BOLI’s Training for Employers page.
BOLI also provides assistance to agricultural employers who have questions about wage and hour laws, including
overtime for agricultural employees. If you are an agricultural employer and have questions or would like to
schedule a training, please contact us at ag.overtime@boli.oregon.gov.
50
BOLI also provides information on using or setting up apprenticeship programs for your business through the
Apprenticeship and Training Division, or you can call 971-673-0760.
Resource Materials
BOLI publishes several employer handbooks that are excellent resources for Oregon businesses:
Civil Rights Laws .........................................................................................$45
Documentation, Discipline & Discharge ....................................................$45
Employee Classification and Wage & Hour Exemptions ...........................$45
Employment Leave Laws .............................................................................$45
Legal Hiring Practices ................................................................................$45
Policy Writing Guidelines ...........................................................................$45
Wage and Hour Laws ..................................................................................$45
Commonly Required Posters in Oregon ......................................................$17
Postings for Agricultural Employers ...........................................................$25
The availability and cost of these materials is subject to change. Employers can get information about the latest
version, cost, and how to purchase on the website, or by calling 971-361-8400.
OREGON MINIMUM WAGE
In 2016, the Oregon Legislature made significant changes to the state minimum wage law effective July 1, 2016. In
addition to a new “standard” state minimum wage rate, the law sets out separate wage rates that apply to employers
who employ employees in an urban growth boundary (UGB) of a metropolitan service district in the state
(currently, only the Portland metropolitan area has such an urban growth boundary), and employers who employ
employees in specific “nonurban” counties identified in the law. Effective July 1, 2023, the state “standard”
minimum wage rate will be adjusted annually based on any increase to the U.S. City Average Consumer Price Index
for All Urban Consumers, with the UGB rate set at $1.25 per hour over the standard minimum wage rate and the
“nonurban county” rate at $1.00 per hour less than the standard minimum wage. For information on the current or
scheduled minimum wage rates, contact the Bureau of Labor and Industries (BOLI) at 971-361-8400 or
employer.assist[email protected].gov, or see BOLI’s online fact sheet.
POSTERS REQUIRED FOR EMPLOYERS
Background
Oregon employers are required to display certain informational posters for their employees. Required employment
posters are available for free, if you contact the appropriate agency. For your convenience, BOLI has combined
commonly required state and federal postings into a wall chart which can be purchased online for $17. For more
information, contact Employer Assistance at 971-361-8400 or employer.assistan[email protected]ov . Please note
that certain employers may have additional posting requirements.
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Bureau of Labor and Industries Required Posters
Required posters issued by the Bureau of labor and Industries (BOLI) include:
• Oregon Minimum Wage (updated each July)
• Oregon Breaks/Overtime
• Oregon Equal Pay
• Oregon Family Leave Act (employers with 25 or more employees)
• Oregon Protection for Victims of Domestic Violence, Harassment, Sexual Assault and Stalking
Employers may download and print each of these publications from BOLI’s website.
U.S. Department of Labor Posters
The U.S. Department of Labor has produced required posters on the federal minimum wage and the Polygraph
Protection Act. Employers must also notify their employees of rights under the Uniformed Services Employment
and Reemployment Rights Act. All public agencies, all public and private elementary and secondary schools, and
companies with 50 or more employees, must also display the Family and Medical Leave Act poster. For additional
information contact:
U.S. Department of Labor
Wage and Hour Division
620 SW Main St, Room 423
Portland, OR 97205
503-326-3057 or 866-4-USWAGE (866-487-9243)
Equal Employment Opportunity Commission Poster
Employers with 15 or more employees, employment agencies, and labor organizations must display this poster,
which is available in English or Spanish. The notice for the Americans with Disabilities Act (ADA) is included. For
information, write or call:
Equal Employment Opportunity Commission (EEOC)
Federal Office Building
909 First Ave Ste 400
Portland, OR 97201
503-326-3057
Safety and Health Poster
All employers with one or more employees must display this poster, which is available at no cost in English and
Spanish. For information write, call, or download from the Web:
Department of Consumer & Business Services
Oregon OSHA
350 Winter Street NE
PO Box 14480
Salem, OR 97309-0405
503-378-3272 or 1-800-922-2689
osha.oregon.gov
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Workers’ Compensation Notice of Compliance
This notice is issued by the Workers’ Compensation Division (WCD) upon receipt of a proof of coverage filing
from the employer’s insurer. Every employer with one or more subject workers must obtain insurance and post the
notice in a place where the workers can see the notice. You should automatically receive this notice after purchasing
worker’s compensation insurance. If you do not receive this notice or need a duplicate, write or call:
Department of Consumer & Business Services
Workers’ Compensation Division
PO Box 14480
Salem, OR 97309-0405
503-947-7814
wcd.oregon.gov
Unemployment Insurance Notice (Form 11)
As required by ORS 657.625(3), employers subject to Unemployment Insurance law in Oregon must post this
notice. The Employment Department will automatically send you this notice when processing your registration. If
needed, you can obtain a duplicate or Spanish version. Have your state business identification number ready when
you call to obtain this notice. For information, write or call:
Employment Department
Tax Section Room 107
875 Union Street NE
Salem, OR 97311
503-947-1488
https://www.oregon.gov/employ/Businesses/Pages/Contributions.aspx
Paid Leave Oregon Model Notice Poster
As required by ORS 657B.440, employers subject to Paid Leave Oregon law must post this notice in a visible place.
Employers must post the model notice poster at each work site and provide a copy to any remote employees. You
can download a printable version of the poster here.
For more information, you can:
• Visit our website at paidleave.oregon.gov
• Reach us by email at paidleave@oregon.gov; or
• Contact us by phone at 833-854-0166.
COMPLY WITH AMERICANS WITH DISABILITIES ACT
Background
The American with Disabilities Act (ADA) is a federal law that prohibits discrimination against disabled persons in
the areas of employment, public accommodation, and public services.
Title III of the ADA requires that public accommodations make facilities and services accessible to the disabled.
Many private businesses are considered public accommodations under this law. The ADA specifies twelve types of
entities that, regardless of size, are public accommodations: places of lodging, exhibition or entertainment, public
gathering, public display or collection, recreation, and exercise; private educational institutions; establishments
53
serving food or drink; sales or rental establishments; service establishments; stations used for specific public
transportation; and social service center establishments.
Title I of the ADA deals with private employment and prohibits discrimination against “any qualified individual
with a disability” in all aspects of employment. Title I applies to employers who have 15 or more employees.
General information on the ADA is available from:
Northwest ADA (serving OR, WA, ID, AK)
Center for Continuing Education in Rehabilitation
6912 220
th
St. SW, Suite 105
Mountlake Terrace, WA 98043
800-949-4232 (Relay: 71-1-1)
For additional information on Title III of the ADA (public accommodation issues), contact:
Civil Rights Division
U.S. Department of Justice
950 Pennsylvania Ave NW
Disability Rights Section – NYAV
Washington DC 20530
800-514-0301 (Voice) or 833-610-1264 (TTY)
www.ada.gov
For additional information on Title I of the ADA (private employment issues), contact:
Equal Employment Opportunity Commission
909 First Avenue Suite 400
Seattle, WA 98104-1061
800-669-4000 (Voice) or 206-220-6882 (TDD)
https://www.eeoc.gov/
Employers with six or more employees are subject to the state disability law and should contact the Bureau of Labor
and Industries for information at 971-673-0824 or employer.assistance@boli.oregon.gov .
CONTACT OREGON OSHA
General Information
All Oregon businesses with employees must comply with the state’s occupational safety and health standards set
and enforced by Oregon Occupational Safety and Health (OSHA).
Please note that all employers are required to have safety committees or safety meetings. Tools are available from
Oregon OSHA for developing your program.
Services Offered
The Oregon OSHA Resource Center has a lending library offering hundreds of videos and an extensive collection
of books and journals covering all aspects of workplace safety and health. The Resource Center, in the Labor and
Industries Building in Salem, is available to the public 8 a.m. to 5 p.m. Monday through Friday. Printed
publications can be ordered online at any time.
Oregon OSHA offers free online training on a number of safety and health topics, including some in Spanish.
General classes cover basic safety and health management, safety committee activities, recordkeeping, and accident
investigation. Technical classes include topics such as ergonomics, hazard communication, fall protection, and
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lockout/tagout. To take an online course, register for classes, or get training materials, visit our Education and
Training website at osha.oregon.gov.
Employers may take advantage of Oregon OSHA’s consultation program to have a free worksite evaluation to help
identify hazards and keep employees safe. The assistance is confidential and no cost to employers in Oregon. Call
800-922-2689 (toll-free), call one of our office locations, or email consult.web@dcbs.oregon.gov to make a
consultation request. Experienced consultants will offer suggestions and options for eliminating hazards.
To get information on the regulations that apply to your business and to learn more about Oregon OSHA services,
contact:
Department of Consumer and Business Services
Oregon OSHA
350 Winter Street NE
PO Box 14480
Salem, OR 97309-0405
503-378-3272 (voice/TTY) or 800-922-2689 (in Oregon)
osha.oregon.gov
Field Office Numbers
Information is also available from the Oregon OSHA field offices in the following locations:
Office Information Consultations
Bend .................541-388-6066 ............ 541-388-6068
Eugene ..............541-686-7562 ............ 541-686-7913
Medford ............541-776-6030 ............ 541-776-6016
Pendleton ..........541-276-9175 ............ 541-276-2353
Portland ............503-229-5910 ............ 503-229-6193
Salem ................503-378-3274 ............ 503-373-7819
HEALTH INSURANCE ASSISTANCE
Through special benefits and reforms, the State of Oregon is making health insurance more available and affordable
for employers, their employees, and employees’ dependents.
Oregon Health Insurance Marketplace
The first step to considering whether to offer health coverage to your employees is to understand the health
coverage options available in Oregon:
• Employer-sponsored group coverage
o Small employers with 50 or fewer employees may be eligible for small group coverage.
▪ If you have fewer than 25 FTE (full-time equivalent), you may be eligible for the Small
Business Health Care Tax Credit (see below).
o Large employers with more than 50 FTE must offer employer-sponsored health coverage to their
employees that meets the employer shared responsibility provisions (go.usa.gov/xt335).
• Individual health coverage
o Oregon Health Plan
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▪ Individuals and families who work part time may qualify for Oregon's Medicaid program,
also called Oregon Health Plan, which is free coverage for low-income Oregonians.
▪ To find out more about the Oregon Health Plan visit OHP.Oregon.gov.
o Private health insurance
▪ People who are not offered employer-sponsored health coverage, Oregon Health Plan, or
Medicare can purchase health coverage through a health insurance company or through the
Health Insurance Marketplace.
▪ Financial help is only available through the Marketplace to reduce the monthly premium
and out-of-pocket costs.
▪ American Indians and Alaskan Natives may qualify for additional savings and protections
through the Marketplace.
▪ Oregonians can preview plans and savings available to them at
OregonHealthCare.gov/WindowShop.
o Medicare
▪ Federal health coverage program through Social Security for people who are 65 or older,
are on Social Security Disability for 24 months, or have end-stage renal disease (ESRD).
▪ For assistance with Medicare, contact the Oregon Senior Health Insurance Benefits
Assistance (SHIBA) program at 800-722-4134 (toll-free) or visit SHIBA.Oregon.gov.
• Association health plans
o Allow many small- to medium-sized companies the ability to come together under one health plan,
potentially reducing costs and increasing benefit options.
o There are regulations around these entities and criteria to participate, but coverage is not regulated
or guaranteed for essential health benefits or pre-existing conditions.
• Health reimbursement arrangements
o HRAs allow employers to contribute pre-tax funds to help employees pay for medical expenses.
Small-group coverage
Small-group coverage is available year-round, unlike individual health insurance, which has a set enrollment
window.
If you have at least one employee who receives a W-2, you can purchase coverage for yourself and your workers at
any time. Small businesses with one to 50 employees can purchase a plan from any insurer offering a small-group
plan in Oregon.
**Employees and family members who are offered employer-sponsored coverage likely are not eligible for
financial assistance through HealthCare.gov.
If you are not currently offering health insurance, but want to get an estimate of what offering coverage through a
Marketplace certified plan may cost, use our premium calculator (orhim.info/24SHOPcalc) You can then use
that information to use the tax credit estimator (go.usa.gov/xt33D).
If you need help getting more information about these plans or other available options, please contact a licensed
agent. You can find a local agent at OregonHealthCare.gov/GetHelp.
Coverage for family members
Can your organization sponsor health coverage for additional family members? If not, the family may get a better
deal through HealthCare.gov (possibly getting financial assistance) or the Oregon Health Plan if they are eligible,
rather than being offered full-cost coverage through a family member's employer.
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Don't have employees?
An individual can apply for financial help and enroll in individual coverage through HealthCare.gov:
• During open enrollment, Nov. 1 to Jan. 15.
• Year-round through the Oregon Health Plan.
• During a special enrollment period. This is a 60-day period that can be triggered by certain life events, such
as getting married, having a baby, or losing other health insurance coverage.
Health Care Tax Credit
Small businesses with fewer than 25 full-time employees may be eligible for the Small Business Health Care Tax
Credit if they choose one of the small-group plans certified by the Oregon Health Insurance Marketplace. If your
business qualifies, the tax credit may cover up to 50 percent of the employer paid premiums.
Tax-exempt nonprofits also qualify for a tax credit up to 35 percent of premiums paid. For nonprofits, the credit is
a refund on quarterly payments made to the IRS for income tax withholdings or Medicare withholdings from
employee wages.
Get free expert help
Health coverage experts are available to assist individuals and employers evaluate their health coverage
options, apply for coverage and financial help, and enroll in health coverage. Find an expert for free help near you
at OregonHealthCare.gov/GetHelp or contact the Oregon Health Insurance Marketplace at 855-268-3767 (toll-free).
If employees have questions about Medicare or related insurance
The Senior Health Insurance Benefits Assistance (SHIBA) program is a joint federal and state program that
provides free statewide personalized counseling assistance to people with Medicare and their caregivers.
Call toll free 800-722-4134 (toll-free) or visit OregonSHIBA.org
The Division of Financial Regulation’s Consumer Advocacy unit has advocates that answer other health insurance
questions and complaints such as claim payments. Call 888-877-4894 (toll-free) or visit dfr.oregon.gov.
Small Business Guide to Insurance and Worksite Safety
The Department of Consumer and Business Services regulates areas that are important to small employers, ranging
from insurance to worksite safety. As a business owner, understanding the types of insurance that can protect your
investment and what you can do to promote worksite safety is key to your success. The Oregon Small Business
Guide to Insurance and Worksite Safety provides an overview of these topics, along with contact information so
you can easily obtain more detailed information.
EMPLOYEE RETIREMENT SAVINGS
Oregon Retirement Savings Program
OregonSaves is the state of Oregon’s retirement savings program that provides Oregonians with an easy and
automatic way to save for the future. Employers that do not offer a workplace retirement plan now have an easy
way to help their employees save for retirement, with no employer fees, no fiduciary responsibility, and minimal
ongoing responsibilities (just add employees and submit employee payroll contributions). The program can also
help level the playing field when you compete to attract and retain employees.
Eligible employers of all sizes can register for OregonSaves at any time. All Oregon employers must either 1)
register, if they don’t already offer a workplace retirement plan, or 2) certify their exemption, if they already offer a
plan or have no W2 employees.
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The registration deadline has passed for all Oregon employers. Don’t delay—you can still register today! Visit
www.oregonsaves.com.
For more information, to register your business, or claim exemption, call 844-661-1256 for our customer service
center.
OregonSaves is administered by the Oregon Treasury Savings Network (OTSN), which is a division of the Oregon
State Treasury.
WORKSOURCE OREGON
The Employment Department, through its Workforce Operations Division, manages a statewide system of 38 field
offices and one-stop partnerships to provide services to employers and job seekers. It serves job seekers by
providing them with resources and job referrals that result in employment. Services are delivered in partnership
with Workforce Innovation and Opportunity Act (WIOA) agencies and other community-based organizations under
the WorkSource Oregon Brand. Some partners include regional and local training providers (Workforce Innovation
and Opportunity Act Title 1B), the Oregon Workforce Investment Board, local Workforce Investment Boards,
Higher Education Coordinating Commission (HECC), the Oregon Department of Human Services, local economic
development organizations, the seventeen Oregon community colleges, and others. The Employment Department is
an active partner in WorkSource Oregon, a network of public and private partners working together for businesses
and workers. WorkSource Oregon partners connect businesses with the local resources they need to grow their
businesses and train their workforce. Employment’s job listings service generates and maintains the largest pool of
job openings and job seekers in Oregon.
The department offers Business and Employment Services (B&ES) to connect Oregon Employers with job seekers
through iMatchSkills® (an online job matching tool where employers match job requirements to qualified
candidates, and job seekers match their skills and experience to available jobs), and other programs that represent
almost one third of all job listings in the state. WorkSource Oregon serves employers by providing qualified
applicants for employers and supplying statewide and local labor market information.
These services can reduce recruitment costs, save valuable time and money, stabilize local economies during times
of economic slowdown, and provide quality labor market information to inform decisions. The department
recognizes and appreciates the contributions employers make to the development of Oregon’s workforce. The
services outlined in this section are mostly funded and supported by employer payroll taxes.
Recruitment Services at No Additional Charge
Businesses can reduce personnel recruitment costs, gain job listing exposure, and find top quality candidates by
using WorkSource Business Services. All services are prepaid through the Federal Unemployment Tax Act (FUTA)
and State Unemployment Tax Act (SUTA) taxes paid by employers.
Through local Business Services Teams (BST), your company will gain access to industry experts who are
experienced in recruitment, training and development, and labor market conditions, to help inform decision making
and craft a recruitment strategy that works for you. Whether you need assistance with a recruitment (i.e., a staff-
assisted recruitment) or want to just do it yourself (i.e., a self-assisted recruitment), our dedicated teams are here to
help you through the process.
If your business needs assistance with recruitment, a BST representative will partner with you to develop your job
description (if needed), listen to have a full understanding of your ideal employee(s), and conduct an onsite visit in
person or virtually to understand your company and culture. To support your recruitment, we will:
• Post the position on our online job board called iMatchSkills® while maintaining employer confidentiality.
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• If appropriate, post to our local Facebook page, Twitter and/or LinkedIn accounts with employer permission
to recruit potential candidates.
• Run a match to filter through thousands of job seeker profiles registered within iMatchSkills® that
potentially match the job description, experience, education, etc. set by the employer.
• Notify potential candidates of the position while maintaining employer confidentiality.
• Conduct pre-screen and first round interviews either in-person or virtually to validate candidate skills as
requested by employer.
• Refer the most qualified candidates to meet the employer’s needs for consideration.
If your business would like to develop your own recruitment, you can use iMatchSkills® independently of our BST.
Employers can post a job listing online and choose to have it automatically open so that it is live and ready for
applicants to view. Employers can also run matches to find potential candidates. WorkSource staff can assist
employers with setting up an iMatchSkills® account and entering job listings into the system.
WorkSource can also help employers set up and promote job fairs and hiring events. In some cases, local
WorkSource Centers can host these events and provide space for interviewing candidates.
Business Services Teams can also assist with other business needs such as resource development, network
connections, training dollars, and more. WorkSource Oregon has helped thousands of Oregon businesses reduce
their recruitment costs and save time. Give them a call today to see how they can help your business succeed. Visit
them online to find your local WorkSource Center.
Work Opportunity Tax Credit (WOTC)
The WOTC program provides businesses with a federal tax credit when they hire certain target group members. For
most WOTC certified new hires, an employer claims a credit of up to $2,400; however, this may go up to $9,600 for
some service-connected disabled veterans.
How can you participate?
To qualify for the tax credit, an employer must apply for and receive an employer certification.
1. Have the potential new hire complete page one of the Pre-Screening Notice (IRS Form 8850) during the
application process and before a job offer is made.
2. If the new employee indicates potential WOTC eligibility on page one of Form 8850, complete page two of
this form.
3. Complete the ETA-9061 form.
4. Submit the forms via the Oregon WOTC online portal, or:
5. Mail the completed forms 8850 and 9061and any supporting documents to:
Oregon Employment Department
WOTC Unit, Room 201
875 Union Street NE
Salem, OR 97311
Important! These forms must be submitted online or mailed within 28 calendar days of the employee’s start
date.
The timeliness of the request is determined by postmark date if mailed, or submission date if completed online. If
the request is timely and the applicant is eligible, an Employer Certification will be returned to the business
authorizing the tax credit. At the end of the tax year, claim the credit on your WOTC certified employee(s) by
completing IRS Form 5884.
The general information below is broken into two areas, Veterans and Non-Veterans.
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New hires from one of these veteran groups may qualify you for the WOTC. The maximum tax credit for these
target groups ranges from $2,400 to $9,600.
• Veterans receiving Supplemental Nutrition Assistance Program (SNAP).
• Veterans unemployed for any 4 weeks in the year prior to hire.
• Veterans with a service-connected disability.
New hires from one of these non-veteran groups may qualify you for the WOTC. The maximum tax credit for
these target groups ranges from $1,200 to $9,000.
• Member of family receiving Temporary Assistance for Needy Families (TANF).
• Member of family receiving Supplemental Nutrition Assistance Program (SNAP).
• Summer Youth from 16 to 17 years old living in an enterprise zone.
• Vocational Rehabilitation referrals.
• Ex-felons recently convicted or released.
• Supplemental Security Income (SSI) recipients.
For more information and required forms, please contact the Oregon Employment Department at 800-237-3710 and
ask for the Work Opportunity Tax Credit Coordinator.
You may also visit us online to access detailed information and required forms.
Foreign Labor Certification Program
Employers who cannot find sufficient able, willing, and qualified U.S. workers to fill their labor needs can contact
the Employment Department Labor Certification Unit for assistance. This program is operated in conjunction with
the U.S. Department of Labor to certify foreign-national workers for temporary agriculture and non-agriculture
labor needs. The process assures that adequate recruitment has been done to find qualified U.S. workers and that the
hiring of foreign-national workers will not adversely affect wages and working conditions of U.S. workers. Please
visit the US Department of Labor for program details and forms. For staff assistance, call 800-237-3710 and ask for
the Foreign Labor Certification Unit.
Veteran Services for Employers
What does the Veteran’s Program offer?
As veterans leave the armed forces, thousands of highly trained and qualified workers are coming back into the
civilian labor pool. The WorkSource Oregon Employment Department’s Local Veteran’s Employment
Representatives (LVERs) work with employers who want to hire the best-trained workforce in the country.
Additionally, each of the Oregon WorkSource offices has staff who assist employers in recruiting veterans for their
positions. Veterans seeking work apply for services with the Employment Department and their information is
placed into iMatchSkills®. By law, veterans are given priority service. They are the first considered for openings
and the best-qualified veteran applicants are referred to employers. Additionally, veteran representatives may also
contact employers to talk about veterans gaining skills through an on-the-job training program.
Veterans Administration Vocational Rehabilitation Programs
Your business may be eligible for Veterans Administration Vocational Rehabilitation approved on-the-job training
or apprenticeship programs. The on-the-job training program reimburses you for wages paid to qualified veterans
who are in training. The Employment Department also offers recruiting assistance to federal contractors to meet
veteran-related affirmative action plans. For more information, visit benefits.va.gov/benefits/.
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Who can I contact to hire a veteran or list a job opening?
To contact your nearest WorkSource Oregon office, visit the Employment Department online. Check out their
Recruiting Resources for Veteran Employment Services and other Job Accommodation Resources or look in the
government section of your phone directory.
Special Requirements for Federal Contractors
Federal contractors (for procurement of personal property or non-personal services including construction) who
have a federal contract of at least $100,000 with the federal government must take affirmative action to hire and
promote qualified special disabled veterans and any other veterans who served on active duty during a war or
in a campaign or expedition for which a campaign badge has been authorized. This requirement is covered under
Title 38 chapter 42 of the US Code. It is called the Federal Contractor Job Listing (FCJL) requirement.
Work Share Program
The Work Share program offers an alternative to laying off employees. Under the program, instead of being laid
off, employees work reduced hours and receive reduced unemployment insurance benefits. You may request to
participate if you reduce your employees’ workweek between 10 % and 50 %. Work Share can affect your tax rates.
For more information, call 800-436-6191; or in Salem, 503-947-1800. For more information, visit
www.oregonworkshare.com.
UNDERSTAND UNEMPLOYMENT INSURANCE BENEFITS
Unemployment Insurance benefits replace part of the income lost when a person becomes unemployed through no
fault of their own. This softens the impact job losses have on communities. Workers maintain purchasing power to
support businesses in the area where they live.
Qualifying
A claim is based on a one-year period known as the base year. The base year is the first four of the last five calendar
quarters completed at the time the initial claim is filed. Claimants who do not qualify using the above base year may
use a base year consisting of the last four completed quarters.
There are two ways to qualify:
First: claimants qualify if they have employment and wages of at least $1,000 in employment subject to
unemployment insurance law AND total base year wages equal to at least one and one-half times the wages in
the highest quarter of the base year. OR
Second: if an individual does not qualify the first way, a person may qualify for benefits if the individual has
wages and worked at least 500 hours of employment subject to unemployment insurance law during the base
year.
Benefit amounts are set by law as a percentage of the wages received during the base year. The weekly benefit
amount is 1.25% of the total base year wages but with a fixed lower limit of 15% and an upper limit of 64% of the
state average weekly wage in covered employment.
A claim lasts for 52 weeks that make up the benefit year. This is the 12-month period beginning with the week they
first file for benefits to set up a claim.
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Claimants may receive up to 26 weeks of benefits within the benefit year as long as they meet all weekly eligibility
requirements for each week that they seek benefits. Minimum claims may have fewer than 26 weeks available.
Extended benefits may be paid beyond the 26 weeks during periods of high unemployment.
Disqualifications and Penalties
Receipt of unemployment insurance is based on eligibility, not need. A worker who worked enough during the base
year may receive benefits if they are out of work through no fault of their own. The person must be able, available,
and actively seeking work each week that they seek benefits.
Some reasons for disqualification, denial, or reduction of benefits are:
1. Voluntarily leaving work without good cause, discharge or suspension for misconduct connected with work, or
failing to accept a job offer or referral to a job without good cause. If disqualified, claimants must work and
earn at least four times their weekly benefit amount before they may receive benefits. In addition, the total
benefits a person can receive are reduced. As a rule, the total reduction is eight times the person’s weekly
benefit amount for each disqualification.
2. Discharged because of a felony or theft connected with work. If disqualified, all benefit rights based on the
wages earned before the date of discharge are canceled.
3. Being involved in a labor dispute. The claimant may be disqualified as long as the labor dispute continues.
4. Not being able to work, not being available for work, and/or not actively seeking work. This is a week-to-week
denial. The disqualification ends when the claimant is able, available, and actively seeking work.
5. Receipt of retirement pay from a base year employer. Retirement is deducted dollar for dollar from the weekly
benefit payment.
6. School employees working in an instructional, research, or principal administration capacity between terms and
school years. Generally, school employees working in these types of roles at least 50% of the time do not
receive benefits based on school wages if they have reasonable assurance of returning to work when school re-
opens.
7. Not having authorization to work in the United States. Benefits will not be paid unless a person has
authorization to work in this country.
8. Fraudulently receiving benefits. Misrepresentation to receive benefits may result in a disqualification of up to
26 weeks and criminal prosecution.
Working and Receiving Benefits
Under unemployment insurance law, workers are “unemployed” when working less than full-time and earning less
than their weekly benefit amount. A person may earn up to 10 times Oregon’s minimum wage or one-third of the
weekly benefit amount (whichever is greater) before benefits are deducted dollar for dollar from the weekly benefit
amount. When working full time or earning more than the weekly benefit amount, the individual is not
“unemployed” and not eligible for benefits.
Notice of Claim Filed (Form 220)
When a person files or restarts a claim, the most recent employer receives a Notice of Claim Filed, Form 220. If a
claimant did not work and earns four times the weekly benefit amount from their last employer, the Employment
Department will also mail a Form 220 to the next-to-last employer. Mail or fax Form 220 to the Employment
Department within ten days after the date the form was mailed to you to protect your appeal right.
Employment Department adjudicators investigate separation and eligibility issues and rely on you, the employer, for
much of the information about a claimant’s eligibility. Your timely response to the Notice of Claim Filed Form 220
entitles you to a decision you can appeal if an issue exists that may affect the claimant’s eligibility for benefits. If a
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claimant stopped working for you for any reason other than lack of work, provide details of the separation in the
space provided on the form and use the back, if necessary. Please be sure your information is correct and true.
Willful false statements can result in additional charges against your account. It is important that you respond to
requests for separation information on former employees. The facts surrounding an employee’s separation can
directly affect your tax rate because we decide to pay or deny claimants based, in part, on this information. If you do
not provide any information, the Employment Department will make a decision based on the available information.
Decisions to allow benefits affect all base year employers as their accounts may be subject to charges for benefits
paid because of the person’s most recent separation.
Inquiries from Other States
All states, the District of Columbia, Puerto Rico, the Virgin Islands, and Canada have unemployment insurance
programs. People who work in one state often file for unemployment in another state. If you receive forms from
another state or agency about a former employee, it is to your advantage to reply. UI payments can affect charges to
your account no matter where the claimant lives or files his or her claim.
Reporting a Job Refusal
A worker who refuses suitable work without good cause will be disqualified. The Employment Department has no
way of discovering these issues unless you or the worker tell us. If you offer a job to someone who is claiming
benefits, and that person fails to accept the job or behaves in a way that causes you to withhold a job offer, please
go to our website to report a job refusal at
https://app.smartsheetgov.com/b/form/7a927a47c1cf46059ea48cf5155164ca. If you have questions or need
assistance, please contact the department’s Benefit Payment Control section at 503-947-1995.
Fraud
The Employment Department compares quarterly wage reports to records of unemployment benefit payments to
find those people who work without reporting their earnings on their claims. This is called the quarterly crossmatch
process. The Department also investigates issues brought to our attention from any other source. The Department
credits the accounts of tax-paying employers for any benefits paid because of fraud and credits reimbursing
employers when the Employment Department recovers the benefits paid because of fraud. When claimants are
denied for fraud, they may be disqualified for up to 52 weeks (per occurrence) and are required to repay the money
as well as a monetary penalty of up to 30% of the overpaid benefits. If prosecuted and found guilty, the individual
could be fined, jailed, or both.
HEARINGS
Purpose and Process
Every year the Employment Department issues thousands of administrative decisions. The decisions may concern
unemployment taxes or the payment of unemployment insurance benefits to current or former employees. If you
receive a decision and you believe it to be contrary to law and rule, you may request a hearing. Hearing requests
must be filed with the Employment Department within the 20-day time limit or within ten days if you are appealing
a claim determination. Hearing requests can be submitted online through the department’s Contact Us form and by
selecting Request a hearing/file an appeal under “Issue Description”.
The Office of Administrative Hearings (OAH) will mail you notice of the date, time, and place of the hearing along
with a pamphlet titled “How to Prepare and Present Your Case.” Hearings are held by telephone conference call.
Administrative law judges with the OAH conduct the hearings.
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The hearing process is simple. Individuals can represent themselves. During a hearing, both sides have a chance to
present their cases and ask questions of any witnesses that appear. All testimony is taken under oath or affirmation.
The decision of the administrative law judge is based solely on the facts presented at the hearing, so it is important
you participate in the hearing to make certain your side of the story is told. If you cannot participate in the
scheduled hearing to tell your side of the story, contact the OAH immediately. If you ask for a hearing but then fail
to participate, your appeal will be dismissed. You will receive the administrative law judge’s written decision
approximately 14 days after the hearing.
You may also appeal the administrative law judge’s decision. Unemployment benefit cases are appealed to the
Employment Appeals Board, a three-person panel appointed by the governor. Tax cases are appealed to the Oregon
Court of Appeals. These appeals are a review of the administrative law judge’s decision based on the evidence
presented at the first hearing. This is another reason it is so important to attend a hearing to represent your case. If
you have questions regarding a hearing, contact the OAH at 503-947-1515 or 800-311-3394 or 888-577-2422, or
email OAH@Oregon.gov.
LABOR MARKET INFORMATION
The Employment Department’s Workforce & Economic Research Division has a team of Workforce Analysts who
collect and analyze labor market information for individual businesses, who can then apply that information to their
everyday business decisions. The Workforce Analysts are available to provide concise, up-to-date information
about the local, state, and national economies; on the population trends for those areas; and their effects on
Oregon’s workforce. Their focus is to provide information, as requested by Oregon businesses, related to the labor
market in general, and they can provide specific occupational supply and demand data, or do an analysis of a
business’s wage levels relative to the labor market. Workforce Analysts are also available to create customized
reports for specific businesses when the data is available. The research division also publishes and distributes
information that has been gathered through surveys sent to employers. Businesses can then use this labor market
information to identify challenges and opportunities. Economic development planners, educators and training
providers, job applicants, legislators, and the news media also regularly rely on this information to learn about
workforce issues that affect Oregonians.
Information on the Internet
The Oregon Employment Department maintains a nationally recognized website where employers can find local,
regional, and statewide labor market information. This information includes business ownership characteristics,
competitive wage rates, inflation indexes, projected future employment for jobs, and how changes in the economy
affect them. Research staff are on hand to show businesses how to retrieve such data – and how to apply it directly
to their venture. Visit them online at Qualityinfo.org.
Labor Market Information Publications
Oregon Employment Department staff prepare and distribute thousands of publications to schools, businesses,
planners, and the public. A complete list of labor market information publications is available online.
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UNCLAIMED PROPERTY
Complying with Oregon’s Unclaimed Property Law
For more than 60 years, Oregon’s Unclaimed Property program has protected consumer rights in Oregon and
reunited people with their forgotten assets. The statewide program, which was transferred to the Oregon State
Treasury from the Department of State Lands in 2021, helps safeguard individuals’ unclaimed funds until they can
be claimed by their rightful owner. Unclaimed property is any amount of money owed by a business, nonprofit, or
government agency to someone who cannot be found. Oregon law (ORS 098) requires businesses, public agencies,
and other types of organizations to report all unclaimed assets each year to Oregon State Treasury.
Common types of unclaimed property include:
• Uncashed checks, including payroll checks.
• Refunds and other deposits.
• Accounts receivable – credit balances.
• Stocks and securities.
Property becomes unclaimed when organizations that hold funds for someone else lose contact with the owners.
Every year Oregon governments, businesses, and nonprofits reach out to owners and make one last attempt to
connect them with their property. When these efforts are unsuccessful, these organizations are legally required by
ORS 098 to report any unclaimed funds to the state. Oregon’s annual unclaimed property reporting window runs
from October 1 to November 1. All Oregon businesses—no matter their size—are required by law to report
unclaimed funds to the state during this period. The same goes for state agencies, local governments, and nonprofits
that hold unclaimed property.
Learning how to report unclaimed property is easy. The Unclaimed Property website has information about
reporting requirements, annual summer trainings, holding periods for different types of property, and instructions
for requesting a reporting extension. To connect with our program staff, visit unclaimed.oregon.gov/app/contact-us.
.
OREGON CONSUMER INFORMATION PROTECTION ACT
Oregon law requires individuals, businesses, and organizations that own, license, maintain, store, manage, collect,
process, acquire, or possess personal information to follow requirements that help protect consumers from identity
theft.
Personal information is a consumer’s name combined with one or more of the following data elements, if the data
elements are not encrypted, redacted, or rendered unusable; or if the data elements are encrypted and the encryption
key has been acquired:
• Social Security number;
• Driver license or state identification card number issued by the Department of Transportation;
• Passport or other identification number issued by the United States;
• Financial account, credit card, or debit card number combined with any security code, access code, or
password that would allow access to a consumer’s financial account;
• Data from automatic measurements of a consumer’s physical characteristics, such as an image of a
fingerprint, retina, or iris, that are used to authenticate a consumer’s identity;
• Health insurance policy or subscriber identification number along with any other unique identifier that a
health insurer uses to identify the consumer; and
• Information about a consumer’s medical history or mental or physical condition or about a health care
professional’s medical diagnosis or treatment of the consumer.
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Any data element or combination of data elements is also personal information even without the consumer’s name,
if the information has not been encrypted, redacted, or rendered unusable and the information would enable a
person to commit identity theft against the consumer.
Finally, a username or other identification method together with any authentication method is also personal
information.
If you handle personal information in the course of your business, you must protect it by developing, implementing,
and maintaining reasonable safeguards, including the proper disposal of personal information. If you are an owner
of a small business (100 or fewer employees), you already comply with the reasonable safeguard requirements if
your information security and disposal program contains the administrative, technical, and physical safeguards and
disposal measures appropriate to the size and complexity of your business, the nature and scope of its activities, and
the sensitivity of the personal information it collects.
Oregon law prohibits the printing of Social Security Numbers (SSNs) on any documents mailed to but not requested
by the consumer. If the consumer requests mailed documents that contain an SSN, you must redact the number.
Further, you cannot print an SSN on a card used by the consumer to access products or services, nor can you
publicly display or post (such as on a website) an SSN unless you redact it.
When disposing of, or transferring to another person for disposal, material or media that display a consumer’s SSN,
you or the person who ultimately disposes of the material or media must make the SSN unreadable or
unrecoverable.
If you experience a data security breach, you must notify affected consumers of the breach expeditiously and
without unreasonable delay, but no later than 45 days after discovering or receiving notification of the breach. If the
breach affects over 250 people, you must also notify the Oregon Attorney General in writing or electronically.
These notification requirements, however, do not apply to certain businesses and organizations, including those who
are subject to and comply with regulations under the federal Gramm-Leach-Bliley Act or the Health Insurance
Portability and Accountability Act (HIPAA), though they must still provide the Oregon Attorney General a copy of
the notice sent to consumers or other regulators for breaches affecting over 250 people.
Anyone who violates the OCIPA may incur a civil penalty of up to $1,000 for each violation and up to $500,000 for
a continuing violation.
For further information contact:
Department of Consumer and Business Services
Division of Financial Regulation
350 Winter St. NE, Room 410
Salem OR 97301-3881
503-378-4140 or 888-877-4894 (toll-free in Oregon)
OFFICE OF SMALL BUSINESS ASSISTANCE
Fostering Collaboration for Better Business
Created by the Oregon Legislature in 2013, the Office of Small Business Assistance is housed in the Secretary of
State’s Corporation Division. The Small Business Assistance team provides an objective voice for entrepreneurs
within the halls of government. When problems arise, the team works collaboratively with small businesses and
state agencies to help resolve issues and facilitate communication.
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Get Help
The mission of the Office of Small Business Assistance is to assist entrepreneurs who believe they’ve been
subjected to unreasonable or unfair state regulatory actions, such as investigations, excessive fines, penalties,
threats, or other enforcement by a state agency. The team investigates complaints and works toward a mutually
acceptable resolution.
If you feel your business has been aggrieved by an Oregon agency and you’ve tried to resolve the issue without
success, request assistance online, call the Office of Small Business Assistance toll free at 844-469-5512, or email
business.sos@sos.oregon.gov.
OFFICE OF THE TAXPAYER ADVOCATE
The Taxpayer Advocate, whose office was created in 2021 and is housed in the Department of Revenue, is a voice and a
resource for taxpayers. The Advocate will serve taxpayers whose problems are not resolved through ordinary
channels; receive and evaluate complaints of improper, abusive, or inefficient service by agency employees;
promote taxpayer issues and concerns to department policymakers and state legislators; and problem-solve and
suggest options to taxpayer dilemmas through normal channels of which the taxpayer may not have been aware.
For more information visit the Office website at oregon.gov/dor/Pages/Taxpayer-Advocate.aspx.
