Oregon New Employer Information
Congratulations on your decision to become a new employer in Oregon! You will need a few things in place before you run your first payroll.
For help registering your business in Oregon, check out our partner, CorpNet.
Federal, State, and Local Tax Accounts
Federal Tax Accounts:
- Although it is not required, we suggest you register online for the EFTPS (Electronic Federal Tax Payment System).
- EFTPS is an easy way to pay your federal taxes online or view any tax filings made on your behalf by Patriot. To find out more about EFTPS, read our article, “What Is EFTPS?”
State of Oregon Tax Accounts:
- Oregon new employers will need to register their businesses with the Oregon Secretary of State by registering online with the Secure Access System.
- You will receive an Oregon BIN. This will be your business identification number for your state income taxes (SIT), state unemployment insurance (SUI), Workers’ Benefit Fund Assessment, and the local TriMet or LTD taxes.
- For more information, visit the Oregon Department of Revenue.
- Oregon has a Paid Family leave program. You can learn more about Oregon’s Paid Family Leave program by reading our help article here.
- Employers in Oregon will receive a new State Unemployment Tax Assessment (SUTA) rate every year.
- The Oregon new employer SUTA rate is 2.4% for 2024.
- Oregon also has a special offset tax of 0.12% for the first quarter, then 0.09% for every quarter after. This is for your information only. As a Patriot customer, we calculate this automatically for all Oregon payroll without you needing to enter anything in the system.
- To learn more about SUTA, read our article, “What Is SUTA Tax?”
Local Tax Accounts:
- Some Oregon employers are responsible for local taxes. Local taxes include Metro Supportive Housing Services (SHS) tax, Multnomah County Preschool for All (PFA) tax, Eugene Community Safety Payroll tax, Canby transit tax, Lane transit tax, Sandy transit tax, South Clackamas transit tax, TriMet transit tax, and Wilsonville transit tax. The Oregon Department of Revenue administers the TriMet and Lane County transit tax programs. The other transit tax programs are managed by individual districts/cities, so you will need to get an EIN and report.
- You must register with local tax accounts if you are responsible for local taxes.
- For more information on Oregon local taxes, check out our help article.
State-mandated Requirements:
- You must have workers’ comp insurance if you have at least 1 employee in Oregon. You can sign up for workers’ comp insurance through a private provider or state-operated fund. Learn more about workers’ comp requirements in Oregon here.
- Patriot’s online payroll offers free pay as you go (PAYG) workers’ comp integration with our partner, NEXT Insurance. You can get a free quote with NEXT here.
- Oregon requires that all employers enroll in OregonSaves or offer a qualifying retirement plan alternative.
- Patriot has partnered with Vestwell to offer affordable retirement plans for small businesses that integrate with our payroll software. Learn more here.
Setting Up Your New Employee:
- Fill out the required Form I-9 for employee verification for working in the USA.
- This is a two-part form. The first section is filled out by the employee and the second part is to be filled out by the employer.
- You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, read, “Form I-9 In a Nutshell.”
- Oregon has three minimum wages. From July 1, 2023 until July 1, 2024, the standard minimum wage is $14.20, the Portland Metro is $15.45, and the nonurban minimum wage is $13.20 per hour.
- By law, you are required to post the minimum wage poster for your employees.
Once you have all the necessary information, you will be able to set up your payroll for your business.
You will want to keep all payroll records for at least three years. For more information, read our help article, “What Employers Should Know About Employee Payroll Records.”
Let us know if you have any questions. We are here to help!
This is not an all-inclusive list for new employers. Please check with your state and federal government for full compliance.
Your feedback will not receive a reply. If you have a specific issue, please reach out to our support team here.