Paid Leave Oregon Reminder for Oregon Employers

Starting January 1, 2023, Oregon employers will be required to start withholding contributions to the new state’s program – Paid Leave Oregon. This program allows workers in Oregon to take paid time off for qualifying Family, Medical and Safe Leave. Employers must also provide job protection to employees taking paid leave if they have been employed for at least 90 calendar days. Paid Leave Oregon is administered by the Oregon Employment Department (OED).

The Paid Leave Oregon program, created in 2019, is funded by both employer and employee contributions. Employers with 25 or more employees will begin paying at least 40% of contributions and withholding up to 60% of contributions from employee wages, up to a maximum 1.0% combined contribution rate on employee wages of up to $132,900 (indexed annually for inflation). The OED will annually determine both the contribution rate and taxable wage limit. Employers with fewer than 25 employees are exempt from paying the employer contribution. However, if employers with fewer than 25 employees elect to pay the 40% employer portion, they may be eligible for a state grant. Self-employed individuals may also opt-in to the program.

Starting September 1, 2023, eligible employees may receive up to 12 weeks of paid leave benefits. The benefit amount will be determined based on the employee’s previous wages and the state average weekly wage (set by the OED annually). OED will use the state average weekly wage to set a minimum weekly benefit amount and maximum weekly benefit amount. The minimum is 5% of the state average weekly wage, and the maximum is 120% of the state average weekly wage.

Employers will report subject employee wages, contributions based on those wages, and employer contributions on a revised quarterly employer tax report (Form OQ). Payments will be made to the Oregon Department of Revenue (DOR) on or before the due date of the Form OQ (the last day of the month following the quarter to which the report relates). Revenue will then transfer the funds to OED.

Question? The program can be contacted at Paidleave@oregon.gov or by calling 833-854-0166.

Resources

• Frances Online Reporting System:

https://www.oregon.gov/employ/frances/Pages/default.aspx

• Employer Resources:

https://paidleave.oregon.gov/Pages/resources.aspx

• Paid Leave Equivalent Plan Checklist:

https://paidleave.oregon.gov/Documents/PaidLeave-EquivalentPlanChecklist-EN.pdf

• Paid Leave FAQ’s:

https://paidleave.oregon.gov/Documents/PaidLeave-FAQJuly2022-EN.pdf

Our state and local tax (SALT) professionals are available to assist if you have questions about this new program. Please contact our SALT Team at SALT@GMCO.com.

For more information: Please get in touch with Andrea Potter at apotter@gmco.com