Oregon Payroll & Paycheck Tax Calculator
Running payroll in the Beaver State shouldn't feel like paddling upstream on the Columbia River. From Portland to Pendleton, our Oregon Payroll Tax Calculator makes calculating employee withholdings as refreshing as Oregon rain. Navigate the state's unique transit taxes, paid leave program, and high income tax rates with confidence—all in one powerful tool.
Oregon Payroll Tax Steps
Oregon’s progressive income tax system ranks among the nation’s highest, and when you add transit taxes, paid leave contributions, and some of the strictest labor laws in the country, payroll can feel as dense as an Oregon forest. Our calculator helps you clear a path through the complexity, ensuring accurate calculations whether you’re in the Willamette Valley or the high desert.
Here are some key steps you’ll have to take to make smarter payroll decisions.
Step #1: Register with Oregon Department of Revenue and Employment Department
To legally hire in Oregon, you'll need to register with the Oregon Department of Revenue for withholding taxes and the Oregon Employment Department for unemployment insurance. Oregon's Revenue Online system streamlines registration. Don't forget to register for Paid Leave Oregon, the state's mandatory paid family and medical leave program.
New employers pay 2.4% unemployment tax on the first $52,800 of each employee's wages—one of the highest wage bases nationally.
Step #2: Handle Oregon's Comprehensive Form Requirements
The Beaver State's paperwork includes some unique elements:
- Federal W-4 and Oregon OR-W-4 forms for withholding
- Federal forms from the IRS: • Form 941 (Quarterly federal tax return) • Form 940 (Federal Unemployment Tax, FUTA) • W-2 and 1099 (Year-end wage reporting)
- New Hire Reports: Submit within 20 days to Oregon New Hire Registry
- Workers' Compensation: Through SAIF or private carriers, mandatory for all
- Form OQ: Combined quarterly tax report
- Transit tax registration (Portland metro area)
- Paid Leave Oregon reporting and contributions
Oregon's statewide transit tax and local Portland-area transit taxes add extra layers to payroll calculations.
Step #3: Know Oregon's Minimum Wage and Overtime Rules
Oregon has a three-tiered minimum wage system based on location:
- Portland metro: $15.95 per hour
- Standard counties: $14.70 per hour
- Non-urban counties: $13.70 per hour
Tipped employees must receive the full minimum wage before tips—no tip credit allowed. Agricultural workers and certain other categories have specific exemptions.
Oregon follows federal overtime rules but with stricter requirements for certain industries. Manufacturing employees receive 1.5x pay after 10 hours daily in addition to the standard 40-hour weekly overtime.
Step #4: Meet Oregon's Pay Period and Leave Requirements
Oregon doesn't specify pay frequencies for most employees, but requires regular, established paydays. Most employers choose weekly, bi-weekly, or semi-monthly schedules. Final paychecks have strict deadlines: terminated employees must be paid by the end of the next business day, while employees who quit with 48+ hours notice must be paid on their last day.
Oregon mandates multiple leave programs:
- Paid Leave Oregon: Up to 12 weeks paid family, medical, and safe leave
- Sick leave: 1 hour per 30 hours worked (up to 40 hours annually)
- Portland requires additional sick leave for larger employers
Step #5: Use our Simple Oregon Payroll Calculator
Oregon's complex tax structure requires careful calculation:
- Federal income tax withholding
- Oregon state income tax (4.75% to 9.9% based on income)
- Statewide transit tax (0.1% of wages)
- TriMet tax (Portland area: 0.7937% of wages)
- Paid Leave Oregon contributions (1% split between employer/employee)
- Workers' compensation (varies by industry)
- FICA taxes (Social Security and Medicare)
- Unemployment taxes (FUTA and state UI)
Our calculator processes all these elements instantly, providing accurate net pay calculations.
Step #6: Submit Taxes and File Oregon's Multiple Reports
Oregon employers manage numerous filing obligations:
- Quarterly OQ combined reports for withholding and transit taxes
- Quarterly payroll reports for unemployment
- Paid Leave Oregon quarterly reports and payments
- Workers' compensation reports
- Annual reconciliation (Form WR) by January 31
Most employers remit taxes quarterly. After about two years, unemployment rates adjust based on experience, ranging from 0.9% to 5.4%.
Fingercheck and any related entities do not offer tax, accounting, or legal advice. This content is designed for informational purposes only and should not be considered a source of tax, legal, or accounting advice. It is recommended that you consult your tax, legal, and accounting advisors before undertaking any related activities or transactions.