Oregon State Tax Guide
State tax registration guide for Oregon.
Need to register taxes in another state? Review the State Tax Guide section in our Tax Services Toolkit.
REQUIRED REGISTRATIONS
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Unemployment Insurance: State of Oregon Employment Department
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Income Tax Withholding: State of Oregon Central Business Registry
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The Oregon employment tax agencies (listed above) issue a single BIN for all your Oregon employment taxes (excludes local taxes.)
REQUIRED INFORMATION
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BIN ID # (format: XXXXXXX-X)
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SIT payment frequency
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Current year SUI rate
Required Information for Localities
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South Clackamas Transit System Tax ID # (format XXXX)
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All other Local Oregon Transit & Excise taxes have the same ID # as BIN (listed above.)
REGISTERING FOR UNEMPLOYMENT INSURANCE
If this is your first time running payroll in Oregon you'll need to register with the state here.
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Future-date registration is possible for this state's unemployment insurance!
Once you've registered, you'll receive an Unemployment Account Number (UI) and Unemployment Rate (%) which you will need to enter into Namely Payroll under Company > Tax (UI tax).
Your Overall Tax Rate appears on the top right of the Notice of Tax Rate you'll receive from the Employment Department.
CONTACT:
Call the agency at (503) 947-1488 if you need further assistance.
If you’re a new employer in the State of Oregon look here for your new employer tax rate.
REGISTERING FOR INCOME TAX WITHHOLDING
If this is your first time running payroll in Oregon you'll need to register with the State of Oregon Central Business Registry . New employers in Oregon will receive their BIN one to three business days after registering online with the Central Business Registry.
TIP:
Future-date registration is possible for this state's income tax withholding!
Once registered, you'll receive a Withholding Tax Account Number (WH) which you will need to enter into Namely Payroll under Company > Tax (WH tax).
Businesses that have run payroll in Oregon previously can find their BIN on any notice received from the Department of Revenue.
CONTACT:
Call the agency at (503) 947-1488 if you need further assistance.
ADDITIONAL REQUIRED STATE TAXES
South Clackamas, OR
If your business is located in South Clackamas, you will need to call the South Clackamas Transportation District at (503) 829-7000, and they will provide you with a 4-digit tax ID.
Eugene, OR
If your business is located within the Eugene city limits, refer to Eugene, OR Community Safety Payroll Tax for instructions!
Portland Metro and Multnomah County, OR
Both of these taxes must be added to eligible employees manually, once you confirm they meet the criteria detailed below.
Multnomah County Tax Details
If your business is located within Multnomah County, you are within the jurisdiction of the Multnomah County Preschool for All Personal Income Tax. Beginning the calendar year 2022, employers were required to withhold from employees that work within Multnomah County and earn $200,000 or more during the calendar year.
You should withhold this tax for employees making over $200,000 per year regardless of martial or tax filing status.
For non-residents of Multnomah County, only income sourced within the County will be subject to the tax thresholds.
Refer to PFA Personal Income Tax Calculator for withholding calculation and Preschool for All Personal Income Tax FAQ for additional and up-to-date information.
If your business has a physical location or nexus within the Portland Metro Area and/or Multnomah County, you will need to register for this tax.
TIP:
If you only have employees working from home in Multnomah County and your business does not have a physical location in Portland Metro Area or Multnomah County you are not required to withhold this tax from your employees.
To register, go to Portland Revenue Online and select the appropriate link.
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Create an online account by selecting Create PRO Username
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Register your Business > Business Taxes and select Register My Business (Including Rideshare Drivers)
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Register for a withholding account > Withholding and select Register for a Withholding Account
Tax Set Up in Namely Payroll
If your business has a physical location or nexus within Multnomah County, you will need to:
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Add the OR Mult Tax to your Company Tax Set up page.
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For more information refer to Adding and Editing Company Tax Codes and Rates in Namely Payroll.
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Enter your FEIN as the Tax ID.
If your business has no physical location or nexus within Multnomah County there is no action.
If your business has a physical business location within Multnomah County and has employees that are expected to earn $200,000 or more during the calendar year you will need to add the OR-Mult Tax to their employee tax page. This tax will not be added automatically. See Adding and Editing Employee Tax Information for instructions.
An employee may use the Metro/MultCo OPT Form to opt-in or out of withholding or to designate a different withholding amount, based on their tax situation.
TIP:
You can store Opt-out forms and process them in Namely using our Managing eSignature Documents feature.
Process for Employees that Opt-Out
If an employee opts out, the tax should not be set up at the employee level. See Adding and Editing Employee Tax Information for instructions.
If the employee has opted out and has wages of over $200,000 for the year, the wages need to be reported on the employee's W2 form.
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At each year-end after the last payroll has been processed and prior to the year-end corrections deadline, log a case in the Help Community with the following information:
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Product Name: Payroll
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Product Feature: Corrections
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Function: YTD Adjustments
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Subject: Oregon Multnomah County YTD Wage reporting on W2
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In the detail section explain that Oregon Multnomah County YTD Wages need to be reported on the employee's W2.
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Process for Employees that Opt-In
If an employee opts in, add the OR-Mult tax to their employee tax page. See Adding and Editing Employee Tax Information for instructions.
If the employee has opted in but would like to designate a specific tax amount to be withheld each paycheck that is different from the default you must submit a ticket in the Help Community. Namely can only withhold the amounts on a quarterly basis by processing a YTD tax adjustment.
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Two weeks before processing the last payroll of the quarter for the employees that have opted in, log a case in the Help Community with the following information:
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Product Name: Payroll
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Product Feature: Corrections
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Function: YTD Adjustments
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Subject: Oregon Multnomah County Tax Withholding Correction
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In the details section, explain that Oregon Multnomah County QTD tax amount needs to be withheld.
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Give the specific employee details and the amount that needs to be withheld for the quarter.
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We will process a YTD cycle to update those employee records and collect the taxes from you.
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You are responsible for deducting the total quarterly tax amount from the employee's next paycheck.
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TIP:
If you have any questions on this tax or would like more information on the acceptable tax ID format please contact PFA.tax@portlandoregon.gov.
Metro Supportive Housing Services Income Tax
In 2020, voters in the greater Portland area approved a measure to raise money for supportive housing services for people experiencing homelessness or at risk of experiencing homelessness. The program is funded by both a personal income tax and a business income tax. These taxes went into effect for tax years beginning on or after January 1, 2021.
Please note that Namely does not support the business tax, meaning that you will be liable to report and file for this tax which is a percentage of the business net income.
Metro Personal Income Tax Details
To remain compliant with state guidelines, you must offer to withhold the Metro Personal Income Tax from employees’ wages. Employees may use the Metro OPT Form to elect a different withholding amount based on their taxable income and tax filing status.
TIP:
You can store OPT forms and process them in Namely using our Managing eSignature Documents feature.
If your business has a physical location or nexus within the Portland Metro Area and/or Multnomah County, you will need to register for this tax. Use the Find Your Councilor Tool to see if your business falls within the Portland Metro area.
TIP:
If you only have employees working from home in Portland Metro Area and your business does not have a physical location in Portland Metro Area or Multnomah County you are not required to withhold this tax.
Please refer to Metro Supportive Housing Services Income Tax Employer Withholding Requirements for withholding calculation and more information on the tax.
For additional information, refer to the following resources:
Tax Set up in Namely Payroll
If your business has a physical location or nexus within the Portland Metro Area, you will need to:
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Add the OR Metro Supp EE Tax to your Company Tax Set Up page.
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For more information refer to Adding and Editing Company Tax Codes and Rates in Namely Payroll.
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Enter your FEIN as the Tax ID.
If your business has no physical location or nexus within the Portland Metro area there is no action.
If your business has a physical business location within the Portland Metro area and has employees that are expected to earn $200,000 or more during the calendar year you will need to add the OR-Metro Tax to their employee tax page. This tax will not be added automatically. See Adding and Editing Employee Tax Information for instructions.
An employee may use the Metro/MultCo OPT Form to opt-in or out of withholding or to designate a different withholding amount, based on their tax situation.
Process for Employees that Opt-Out
If an employee opts out, the tax should not be set up at the employee level. See Adding and Editing Employee Tax Information for instructions.
If the employee has Opted out and has wages of over $200,000 for the year, the wages need to be reported on the employee W2 form. Follow the process below.
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At each year-end after the last payroll has been processed and prior to the year-end corrections deadline, log a case in the Help Community with the following information:
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Product Name: Payroll
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Product Feature: Corrections
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Function: YTD Adjustments
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Subject: Oregon Metro YTD Wage reporting on W2
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In the detail section explain that Oregon Metro County YTD Wages need to be reported on the employee W2.
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Process for Employees that Opt-In
If an employee opts in, add the OR-Metro Tax to their employee tax page. See Adding and Editing Employee Tax Information for instructions.
If the employee has opted in but would like to designate a specific tax amount to be withheld each paycheck that is different from the default you must submit a ticket in the Help Community. Namely can only withhold the amounts on a quarterly basis by processing a YTD tax adjustment.
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Two weeks before processing the last payroll of the quarter for the employees that opted in, log a case in the Help Community with the following information:
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Product Name: Payroll
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Product Feature: Corrections
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Function: YTD Adjustments
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Subject: Oregon Multnomah County Tax Withholding Correction
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In the details section explain that Oregon Multnomah County QTD tax amount needs to be withheld
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Give the specific employee details and amount that needs to be withheld for the quarter
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The total quarterly tax amount will be deducted from the employee's next paycheck.
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Paid Family and Medical Leave
Beginning on January 1, 2023, the state of Oregon started collecting contributions to the Paid Family and Medical Leave tax. This tax applies to all active employees with an Oregon work location.Employers are required to report how many temporary employees are hired to cover for workers on Paid Leave benefits during the quarter on their tax return.
Program Administration
Oregon Paid Family Medical Leave can be administered in one of two ways, depending on your total employee count. Please note the employee count includes all employees, both those inside and outside of Oregon. Employers count the size using the average number of employees on the 12th of each month from the previous twelve months.
For more information about employee size, see the resource here.
EINS with under 25 employees (Employee-only tax)
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Employees are taxed at the current year rate up to the current year Wage Base.
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Employers with fewer than 25 employees are exempt from paying the employer portion of the tax, although you may still contribute if desired.
To exempt the Employer portion of the tax, submit a ticket to our Help Community using the information below:
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Product Name: Payroll
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Product Feature: Tax Services
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Function: General Questions
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Subject Line: Exempt tax: OR PFML - Employer Tax Only
EINs with 25 employees are considered large (Employee/Employer split)
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Employers and their employees are both responsible for funding the program.
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Employees are taxed at the current year rate up to the current year Wage Base.
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Employers are taxed at the current year rate up to the current year Wage Base.
This tax is remitted on a quarterly pay frequency.
If you provide an equivalent or private PFML plan, a special setup is required.
To be excluded from the collection or request a special setup, submit a ticket in the Help Community using the following information:
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Product Name: Payroll
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Product Feature: Tax Services
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Function: General Questions
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Subject Line: Private plan: OR PFML - Private Plan
Please note that insurance benefits will be available to employees starting September 3, 2023, and extended from January 1, 2023.
You are required to post the model notice at each work site and you must provide it electronically or by mail to any remote workers.
For more information please visit the Oregon Paid Leave website.
POWER OF ATTORNEY FORMS
Please note, Namely does not require a Power of Attorney for this state at this time. It is not required to file or remit payments on your behalf. If one is needed to resolve a tax matter, the tax notice team will request one from you at that time.
If a Power of Attorney is requested from you, you should email completed copies of the forms namelyPOA@Namely.com with the CID in the subject line for processing. We will update our system and maintain a copy of each form for record-keeping purposes
For additional information on Power of Attorney, read Completing the Power of Attorney Package.
STATE INCOME WITHHOLDING FORMS
Namely uploads Federal and State W-4 documents to your HRIS site for use during Onboarding, or if you need to send W-4s to employees who need to make withholding adjustments.
TIP:
The most up-to-date W-4 documents can be found in the Namely section of the Document dropdown menu in Onboarding and Manage eSignature.
Form Name: OR-W-4
Accepts Fed W-4: See Comments.
Comments: Effective Jan. 1, 2020, Oregon uses Form OR-W-4, Oregon Employee's Withholding Statement, and Exemption Certificate, for state withholding purposes. Oregon previously used the federal Form W-4, where they allowed employees to fill out a second Form W-4 for state purposes to claim a different number of state withholding allowances than their federal allowance.
Employees who filed a second Form W-4 for state purposes in 2019 or earlier do not need to adjust their state withholding or file Form OR-W-4 unless they change their federal Form W-4 in 2020.
PAYROLL + TAX FACTS
Refer to this document for more information:2022-2023 Federal and State: Payroll and Tax Fact Sheet.