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Updated: December 6, 2023
Oregon is a state filled with adventure, and running your own small business is nothing short of an adventure. Whether your small business takes tourists on a trip through the mountaintop or feeds Portlandians with savory sandwiches and craft beer, all small business owners have one terribly dull thing in common: payroll taxes.
Luckily, our payroll taxes are here to take the dull out of payroll taxes so you can get back to the adventure of your small business. All you need to do is input W-4 and wage information for each employee, and our payroll tax calculator will calculate both Federal and Oregon payroll taxes for you.
First of all, let’s go through an overview of federal payroll taxes that all employees have to pay, no matter which state they live in. If you would learn more about each individual withholding, head on over to the step-by-step guide that we created just for you.
Now that we’re done with federal income taxes, let’s tackle Oregon state taxes. The State of Oregon has one of the highest top marginal income tax in the country. It’s a progressive income tax ranging from 4.75% to 9.9%, meaning the more money your employees make, the higher the income tax.
Oregon Employers have to pay unemployment insurance that covers those unemployed through no fault of their own. The wage base for 2023 is $50,900. In 2022, it was $47,700. Rates range from 0.7% to 5.4%. If you’re a new employer, use the standard rate of 2.1%.
You’re almost at the finish line! All you have to do after calculating your employee’s net pay is cut those checks. Don’t forget to set aside your own employer taxes so you can remit them to the IRS quarterly.
Federal tax filings are done by filing Form 941 (quarterly) and Form 940 (annually), but deposits can be made on an ongoing basis through the EFTPS payment system. You can learn more about the tax reporting due dates here.
Oregon Department of Revenue | Withholding Tax Tables | Withholding & Transit Taxes | Register As An Employer | Payroll Taxes | Employer Guide | Unemployment Insurance
These rates are based on local legislation and can change at any time. Always consult a tax professional if you are unsure about your obligations.
Oregon employers are able to use the payroll calculator at the top of this page to quickly calculate their employees’ gross pay, net pay, and deductions in a few clicks. But every so often, a company needs to do a little more math before they’re able to cut employee paychecks. For example, do you own a business where employees get tips from customers? Keep in mind that you are responsible for withholding taxes from your employees’ paychecks based on the tips they receive. Additionally, if an employee leaves for another employer, you’ll need to calculate their final pay. So, if you need a little more help with the number-crunching, check out some of the calculators below.
Try OnPay out yourself to see how easy payroll and HR can be. To get started, just share a few basic details about your business. Our team of pros will set everything up and import your employees’ information for you.