Oregon employer tax information
About Oregon employer tax information
With Square, you can run payroll, pay your taxes and stay ahead of the compliance to focus on running your business. This guide is intended for your state taxes only. It’s important to note that laws vary by jurisdiction, and this guide does not attempt to address all jurisdictions or federal taxes — for example, counties or cities often have requirements that differ from federal and state law.
Before you begin
To sign up for Square Payroll in Oregon, you must be registered with the Oregon Department of Revenue and Oregon Employment Department so we can pay and file your state taxes.
For Oregon Department of Revenue, you need your:
Oregon Business Identification Number (9 digits, must begin with a 0)
For Oregon Employment Department, you need your:
Oregon Unemployment Insurance Tax Rate
For City of Sandy, you need your:
City of Sandy Transit Tax Account Number (4 digits)
For City of Wilsonville, you need your:
City of Wilsonville Business License Number (8 digits)
For South Clackamas Transportation District, you need your:
South Clackamas Transportation District Account Number (4 digits)
Oregon payroll tax details
Square Payroll processes the following per the frequency for the listed state agencies.
Withholding Tax Payment: processes after every pay run
State Transit Tax Payment: processes quarterly
Worker’s Benefit Fund Assessment Payment: processes quarterly
Wage and Tax Statement (W-2): processes annually
Annual Withholding Tax Reconciliation Report (Form WR): processes annually
Combined Payroll Tax Report (Form OQ): processes quarterly
Quarterly UI Wage Detail Reporting (Form 132): processes quarterly
Quarterly Withholding Filing (Schedule B): processes quarterly
New Hire Report for Employees: processes as needed
New Hire Report for Contractors: does not file
Oregon local transit tax details
Quarterly Payroll Tax Return: processes quarterly
Quarterly Payroll Tax Return: processes quarterly
Quarterly Payroll Tax Return: processes quarterly
South Clackamas Transportation District
Quarterly Payroll Tax Return: processes quarterly
Make Oregon payroll tax payments
To make Oregon state withholding tax payments, you’ll need to create a Oregon Revenue Online account with the Oregon Department of Revenue(DOR). In order to create an account, you will need an email address, Federal Employer Identification Number, Social Security Number and Business Identification number (BIN) or account ID.
- To pay online, sign in to your Oregon Revenue Online Account. Choose to pay directly from your bank account or by credit card.
- To pay by mail, send all filings with payments or deposit to: Oregon Department of Revenue, PO Box 14800, Salem, OR 97309-0920.
- If no payment or deposit is attached, send to: Oregon Department of Revenue, PO BOX 14260, Salem OR 97309-5060.
If you have any questions, you can contact the Oregon Department of Revenue at (503) 378-4988 or 800-356-4222. You can also email them at questions.dor@oregon.gov.
To make Oregon state unemployment insurance payments, you must be registered with the Oregon Department of Revenue. In addition to the Oregon Combined Payroll Tax report, employers subject to the Unemployment Insurance tax must report employee wage detail information. Reports are due by the last day of the month following the end of each calendar quarter (filing periods are April, July, October, and December).
- To pay online, sign in to your Oregon Revenue Online Account. It will prompt you on how to make an Electronic Funds Transfer (EFT) payment.
- To pay by mail, send all payments directly to: Oregon Department of Revenue, PO Box 14800, Salem, OR 97309-0920.
For additional information, contact the Oregon Department of Revenue at 1-800-356-4222 or email them at payroll.help.dor@oregon.com.
Make payroll withholding, unemployment, and Paid Family Leave tax filings
Combined Quarterly Tax Returns (Form OQ) are due by the last day of the month following the end of the calendar quarter (for example, on April 30 for the first quarter).
To file, sign in to Oregon Frances Online.
For questions about reporting or paying payroll taxes, contact the Oregon Department of Revenue at 503-945-8091 or payroll.help.dor@oregon.gov.
Unemployment tax reports and payments are due by the last day of the month following the end of the calendar quarter (for example, on April 30 for the first quarter).
- To file, sign in to Oregon Frances Online.
- To file by mail, visit the Oregon Employment Department website to order a paper Form 132 or call 503-945-8100.
Daily Withholding tax reports are due by the last day of the month following the end of the calendar quarter (for example, on April 30 for the first quarter).
To file, sign in to Oregon Frances Online.
For questions about reporting or paying payroll taxes, contact the Oregon Department of Revenue at 503-945-8091 or payroll.help.dor@oregon.gov.
You don’t need to file an Employee Details Report (Form 132) if you filed a non-payroll Form OQ, Combined Quarterly Tax Return (i.e., a Form OQ that shows you didn’t have any payroll for the quarter). For more information on state unemployment taxes, contact Oregon Employment Department (OED) at 503-947-1488, email oed_taxinfo_user@oregon.gov, or visit their website.
Register as a new employer in Oregon
Register online as a new business. You will receive your Oregon Business Identification Number immediately after completing the registration online.
Find your local transit tax account numbers
You must retrieve your Transit Tax Account Number directly from the City of Sandy. For more information, visit their website.
You must retrieve your Business License Number directly from the City of Wilsonville. For more information, visit their website.
You must retrieve your South Clackamas Transportation District Account Number directly from the agency. For more information, visit their website.
Find your Oregon tax ID numbers and rates
Look this up online or on any correspondence received from the OR Department of Revenue. If you have a Business Identification Number that is 8 digits long, add a 0 to the beginning.
If you’re unsure, contact the agency at 503-945-8091 or 800-356-4222.
File new hire reports for contractors
If you are an employer in Oregon, Square does not file new hire reports for contractors. If you hire contractors starting January 1, 2024, you need to file new hire reports for each new hire. Qualified contractors are:
Contractors who are expected to perform services for more than 20 days.
Contractors who previously performed services for the business and will perform services again at least 60 days later.
If your contractor meets these qualifications, you must submit a new hire report within 20 days of their start date. To submit new hire report for Oregon-based contractors:
Fill and save a copy of your contractor’s Oregon New Hire Reporting Form.
Fax or mail the form to the Division of Child Support of the Oregon Department of Justice.
Visit the Division of Child Support of the Oregon Department of Justice for more information.
Oregon Family and Medical Leave Insurance
Oregon requires employers to withhold and pay premiums to the Family and Medical Leave Insurance program. The Paid Leave Oregon program allows employees to take paid time off for qualifying life events and is funded by employee and/or employer contributions. All Oregon employers are required to participate in the program with the exceptions of offering employees an approved equivalent plan or if you are self-employed, a Federal employer, or a Tribal government.
Eligibility to apply for the benefits is determined after employees have earned at least $1,000 in wages within the state in the prior year. To learn more about the program, visit the Paid Leave Oregon website.
Square Payroll supports Paid Leave Oregon premium calculations, withholdings, payments, and reporting.
Employee premiums of 0.6% will be withheld from the employee’s paychecks and withholdings will be reported on their W-2s. Any premiums not withheld from the employee’s paychecks will be collected from the employer to ensure the total amount remitted to Oregon will be correct, and the employer will need to collect the premiums from the employee. Employer premiums of 0.4% will be withheld from employers who indicate they have 25 or more employees.
Square Payroll does not offer the option for employers to cover the W-2 employee’s portion of the Paid Leave Oregon tax that is withheld from the employee’s paychecks. Square Payroll also does not have the option to make contributions and report Paid Leave Oregon taxes on behalf of independent contractors.
Employers who have fewer than 25 employees may be eligible for financial help when an employee takes paid time off covered by the Paid Leave Oregon Program. Employers could receive assistance grants up to $1,000 to help with significant wage-related costs or up to $3,000 if you hire a temporary replacement worker while a permanent employee is on leave. Learn more about assistance grants by visiting the Paid Leave Oregon website.
To receive a grant, you’ll need to
- Apply in Frances Online.
- Submit documentation as proof that:
- You’ve hired a temporary replacement employee.
- You’ve incurred wage-related costs, such as overtime or training costs.
- Commit to paying the employer contribution rate of 0.4% for at least two years after receiving the grant.
Square Payroll will help you report the number of replacement employees on your quarterly Form OQ (Oregon Combined Payroll Tax Report). To indicate that an employee is a temporary replacement worker:
- Sign in to your Square Dashboard and select Staff & payroll > Team.
- Select the employee’s profile.
- Go to Tax Settings and select This employee is a temporary replacement worker.
If you decide to convert a temporary employee to a permanent employee, you will need to uncheck the replacement worker setting in the employee’s profile.
Your employees’ status on the last day of the quarter will be used to determine the number of replacement workers to be reported on your tax return.