Oregon Paid Leave
Starting January 1, 2023, Oregon has implemented "Paid Leave Oregon".
How is Paid Leave Oregon paid for?
Paid Leave Oregon is a program we all pay into and benefit from. Employees and their employers share the payments.
Employees pay 60% of the contribution, while employers with 25 or more employees pay 40% of the contribution rate.
The contribution rate for 2023 is 1% of up to $132,900 in wages.
The employee’s amount is taken out of their paycheck. The contribution amount is decided before the beginning of each year by the Oregon Employment Department and will not be more than 1% of their gross wages.
For example, if an employee’s paycheck totals $1,000 dollars, they would pay $6 as their portion of the contribution for that paycheck.
For full detailed information regarding Paid Leave Oregon please visit the following links:
Employers with fewer than 25 employees. Here’s what you need to know:
1. Your employees will participate in the program, no matter the size of your business.
2. As a small employer, you are not required to pay the employer portion of Paid Leave Oregon contributions but you will still need to submit your employees’ portions.
3. Even though you do not make payments, your employees are still covered and get the same benefits.
4. Payments are still taken from their paychecks, and you’ll still collect and submit them.
5. If you choose to make the employer payments, you can apply for an assistance grant that helps cover costs, such as hiring a temporary worker when an employee takes leave.
In AccountEdge, Paid Leave Oregon is set up as an Employee Tax at .6% with the Taxable Wage Base of $132,900:
This will be applied to each employee's card automatically:
Employers with 25 or more employees pay 40% of the 1% contribution rate. To set up the Employer Expense portion:
1) Go to Payroll>Payroll Categories.
2) Click on the "Expenses" tab and then click "New" at the bottom:
3) Enter a name for the Expense. The default name AccountEdge will provide for this Expense (when creating your first Oregon employee) is "PFML - OR".
4) Next click on the "Type of Expense" drop-down menu and choose "PFML".
5) After this select OR for the State Code. Enter the PFML rate as 0.4% and set the Taxable Wage Base at $132,900:
6) Lastly, click on the "Employee" button at the bottom and select the checkbox at the top left corner to select all employees: