Payroll Oregon Unique Aspects of Oregon Payroll Law and Practice
Below is a MRR and PLR article in category Business -> subcategory Other.
Payroll in Oregon: Understanding Unique Aspects of State Payroll Law and Practice
Overview
Oregon's payroll system has distinct characteristics and laws. This article covers essential aspects including tax withholding, unemployment insurance taxes, wage and hour laws, and child support withholding.
Key Aspects of Oregon Payroll
Tax Withholding and Reporting
The Department of Revenue manages state income tax collection and reporting:
- Address: Revenue Bldg., 955 Center St., N.E., Salem, OR 97301
- Phone: (503) 945-8100
- Website: [www.dor.state.or.us](http://www.dor.state.or.us)
Oregon uses the Federal W-4 form for state income tax calculations. Here are some key points:
- Section 125 cafeteria plans are not taxable for income tax or unemployment insurance if used for medical or life insurance.
- 401(k) plan deferrals are not taxable for income taxes but are for unemployment purposes.
- Supplemental wages are taxed at a 9% flat rate.
- W-2s are not required unless specifically requested by the state.
Unemployment Insurance
The Employment Department handles unemployment insurance:
- Address: 875 Union St., N.E., Salem, OR 97311
- Phone: (503) 947-1488
- Website: [www.emp.state.or.us](http://www.emp.state.or.us)
The taxable wage base for unemployment is $27,000. Oregon optionally allows quarterly wage reporting on magnetic media. Unemployment records must be retained for at least three years and should include:
- Employee details (name, SSN, dates of hire, etc.)
- Wages by period
- Payroll periods and pay dates
Wage and Hour Laws
The Bureau of Labor and Industries is in charge of enforcing wage and hour laws:
- Address: 800 N.E. Oregon St., Ste. 1070, Portland, OR 97232
- Phone: (503) 731-4200
- Website: [www.boli.state.or.us](http://www.boli.state.or.us)
Important points include:
- Minimum wage: $7.05 per hour
- Overtime: 1.5 times the regular rate after 40 hours a week or 10 hours a day in some industries
- New hires must be reported within 20 days without penalty for late reports
Additional Payroll Regulations
- Oregon prohibits mandatory direct deposit.
- Pay stubs must include detailed earnings, hours, employer information, and itemized deductions.
- Employees should be paid at least every 35 days.
- Final pay for terminated employees varies based on the nature of termination.
Child Support Withholding
The Department of Justice manages child support orders:
- Address: 1495 Edgewater St., NW, Salem, OR 97304
- Phone: (503) 986-6090
- Website: [http://dcs.state.or.us](http://dcs.state.or.us)
Key child support provisions include:
- Withholding starts by the next payday after 5 days of receipt.
- Payments must be sent within seven days of payday.
- A termination notice is required by the next payday.
- The maximum administrative fee is $5 per month, and withholding limits are 50% of disposable earnings.
Note
Please be aware that payroll laws can change, and it’s essential to stay updated with the latest information.
You can find the original non-AI version of this article here: Payroll Oregon Unique Aspects of Oregon Payroll Law and Practice.
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