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Free Oregon payroll tax
calculator (and OR tax rates)

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  • 1

    Pay Details

  • 2

    Exemptions

  • 3

    Federal Information

  • 4

    State Information

  • 5

    Locale Information

  • 6

    Voluntary Deductions

  • 7

    Calculate Paycheck

Welcome to our payroll calculator!

Before we jump in, who are you using this calculator for?

Thanks!

Our calculators are designed for employers, and they’ll ask for information you may not have. For a better experience, please check out this employee-focused paycheck calculator.

How much did your employee earn?

Gross Pay: This is the total amount of wages your employee earned before taxes and deductions are withheld.


For salaried employees, gross pay equals their annual salary divided by the number of pay periods per year. For hourly employees, gross pay equals the number of hours worked multiplied by their hourly wage.


(Don’t forget to add on any tips, commissions, or bonuses!)

Gross Pay Method: Is the gross pay amount based on your employee’s annual compensation, or by how many hours they worked in the last pay period?

Gross Pay YTD: Enter the total gross pay your employee has earned this year, prior to this paycheck. Normally, this can be found on the last pay stub.

Pay Frequency: How often do you normally issue paychecks?

Check Date: Enter the check date that should appear on your paycheck.

Is your employee exempt from any taxes?

Federal: In some cases, public and governmental employees are exempt from federal taxes. Check “yes” if your employee is exempt and Federal taxes should not be deducted.

FICA: In some cases, public and governmental employees are exempt from FICA. Check “yes” if your employee is exempt and FICA taxes should not be deducted.

Medicare: In some cases, public and governmental employees are exempt from Medicare taxes. Check “yes” if your employee is exempt and Medicare taxes should not be deducted.

Please enter your employee’s withholding information.

2020 W4: Would you like to use the 2020 withholding tables? Here’s an article that covers the 2020 W-4 updates if you aren’t sure.

Federal Filing Status: Select your employee’s filing status for federal withholding. This helps determine how much federal tax will be withheld.

Two Jobs: If the employee indicated that they have more than one job or are married and filing jointly with a working spouse, select Yes here.

Dependents Amount: Enter the amount your employee listed on Line 3 of their W-4, if any. This is where they claim dependents.

Other Income: If your employee listed another other income on line 4(a) of their W-4, enter the amount here.

Deductions: Enter any deductions that your employee listed on line 4(b) of their W-4, if applicable.

Additional Federal Withholding: If your employee has asked to have additional funds withheld from each paycheck, enter the amount here. If they have not, enter “0”.

Round Federal Withholding: Would you like us to round your employee’s withholding totals to the nearest dollar? (It’s not required, but it is permitted)

Now, add information for their state.

State: Select the state where withholding should be calculated. It should be the same state where the work was performed.

Now, add locale information if applicable.

Does your employee have any voluntary deductions?

Please add any additional deductions for items like health insurance, 401(k), HSAs/FSAs, or any other benefits.


Select type of deduction needed:

401(k)

Add deduction

HSA

Add deduction

Custom

Add deduction

Let’s finish crunching the numbers!

Click the button below to see your paycheck calculated.

Here’s your paycheck information:

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Updated: May 6, 2024

We built a payroll calculator with Oregon employers in mind. 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.

Federal payroll taxes for Oregon employers

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.

  1. Calculate Gross Pay.
    1. If you have hourly employees, simply multiply their hourly rate by the number of hours worked during the pay period. Remember, you have to pay a higher rate for overtime hours.
    2. If you have salaried employees, take their annual salary and divide it by the number of pay periods. This number will stay constant unless (or until) you give them a raise.
    3. And don’t forget bonuses, commissions, or tips all get added into gross wages as well!
  2. Subtract Pre-Tax Deductions. If your employees participate in 401(k), HSA, or FSA plans, for example, subtract their contributions from gross pay so that their taxable income is reduced by this amount.
  3. Withhold Federal Income Tax. Now that you have adjusted gross pay, you can determine the federal income tax that you have to withhold. The tax rate ranges from 0% to a high of 37%. We won’t get into the nitty-gritty here, but you can find all the tax bracket information in the IRS Publication 15-T.
  4. Deduct FICA Taxes. FICA stands for Federal Insurance Contributions Act, which was first introduced to the American population back in 1935. It collects two taxes that both employees and employers have to pay: Social Security and Medicare.
    1. Social Security Tax: Withhold 6.2% of each employee’s taxable wages up to $168,600 for the 2024 tax year. If an employee makes more than $168,600, any salary above this amount is exempt. As an employer, you also have to pay the IRS 6.2% of your employee’s salary dollar-for-dollar.
    2. Medicare Tax: Withhold 1.45% of each employee’s taxable wages up to $200,000 for the 2024 year. If an employee makes more than $200,000, an Additional Medicare Tax (super original, we know) of 0.9% should be withheld. As an employer, you are only responsible for matching 1.45% of the first $200,000. You do not need to match the Additional Medicare Tax.
  5. Calculate the Employer FUTA Tax. FUTA stands for the Federal Unemployment Tax Act. Employers are responsible for paying 6% of each employee’s first $7,000 of taxable income. Your employees are not responsible for paying FUTA. The good news is that if you pay state unemployment tax in full and on time, you are eligible to receive a 5.4% tax credit, bringing your effective FUTA tax rate all the way down to 0.6%.
  6. Subtract Post-Tax Deductions. Most of your employees won’t have post-tax deductions, but if they do, you will need to make a deduction here and send the deduction to the appropriate jurisdiction. Post-tax deductions can be anything from garnishments like child support to life insurance.
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Oregon payroll taxes

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.

 

  • Employees who work in Oregon also continue to pay a transit tax of 0.01% in 2024. You must withhold this tax from employee wages.
  • Employers who do business in TriMet or Lane have to pay a transit tax. Rate information can be found here.

Retirement savings mandate

Did you know that most Oregon employers are required by law to provide their employees with access to a retirement savings plan. Learn more about the OregonSaves program.

Oregon state unemployment insurance (SUI)

Oregon Employers have to pay unemployment insurance that covers those unemployed through no fault of their own. The wage base for 2024 is $52,800. In 2023, it was $50,900. Rates range from 0.7% to 5.4%. If you’re a new employer, use the standard rate of 2.4%.

Staying compliant

Did you know that almost all employers in the state are required to carry workers’ compensation? Learn more about who needs coverage and the benefits it provides in our employer’s guide to Oregon workers’ comp requirements.

Sign those paychecks

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.

Additional OR payroll tax resources:

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.

Other payroll calculators for Oregon employers

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.

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