Payroll Oregon, Unique Aspects of Oregon Payroll Law and Practice

regon State Agency that oversees the collection503-378-2868 or on the web at does not allow
and reporting of State income taxes deductedcompulsory direct deposit Oregon requires the
from payroll checks is:Department offollowing information on an employee's pay
RevenueRevenue Bldg.955 Center St., N.E.Salem,stub:Gross and Net Earningsstraight time and
OR 97301(503) 945-8100 allows you to use theovertime payhours workedpay period
Federal W-4 form to calculate state income taxdatesemployer's nameemployer's
withholding.Not all states allow salary reductionsaddressemployer's phone numberannual pay
made under Section 125 cafeteria plans or 401(k)statement for previous year by March 10 if
to be treated in the same manner as the IRSemployee requestsitemized deductionsOregon
code allows.In Oregon cafeteria plans are notrequires that employee be paid no less often than
taxable for income tax calculation; not taxable forevery 35 days.In Oregon there are no statutory
unemployment insurance purposes if used torequirements concerning the lag time between
purchase medical or life insurance 401(k) planwhen the services are performed and when the
deferrals are not taxable for income taxes;employee must be paid.Oregon payroll law
taxable for unemployment purposes.In Oregonrequires that involuntarily terminated employees
supplemental wages are taxed at a 9% flatmust be paid their final pay by the end of the
rate.W-2s are not required in Oregon unless statefirst business day after discharge or
requests them. The Oregon State Unemploymenttermination.Voluntarily terminated employees must
Insurance Agency is:Employmentbe paid their final pay earlier of next regular
DepartmentUnemployment Insurance Tax875payday or 5 business days; immediately if 48
Union St., N.E.Salem, OR 97311(503) 947-1488hours' notice is given. Deceased employee's
State of Oregon taxable wage base forwages must of $10,000 be paid to the surviving
unemployment purposes is wages up tospouse, children, or guardians (in equal
$27,000.00. Oregon has optional reporting ofshares).Escheat laws in Oregon require that
quarterly wages on magneticunclaimed wages be paid over to the state after
media.Unemployment records must be retained inthree years.The employer is further required in
Oregon for a minimum period of three years.ThisOregon to keep a record of the wages
information generally includes: name; social securityabandoned and turned over to the state for a
number; dates of hire, rehire and termination;period of 3 years.Oregon payroll law mandates no
wages by period; payroll pay periods and paymore than $7.05 may be used as a tip credit.In
dates; date and circumstances of termination.TheOregon the payroll laws covering mandatory rest
Oregon State Agency charged with enforcing theor meal breaks are only that all employees must
state wage and hour laws is:Bureau of Labor andhave 30 minutes rest after five hours of work;
IndustriesWage and Hour Division800 N.E. Oregon10 minutes rest each 4 hours.Oregon statute
St., Ste. 1070Portland, OR 97232(503) 731-4200requires that wage and hour records be kept for
minimum wage in Oregon is $7.05 per hour.Thea period of not less than two years.These
general provision in Oregon concerning payingrecords will normally consist of at least the
overtime in a non-FLSA covered employer is oneinformation required under FLSA.The Oregon
and one half times regular rate after 40-houragency charged with enforcing Child Support
week (10-hour day in some industries). OregonOrders and laws is: Department of JusticeDivision
State new hire reporting requirements are thatof Child SupportDepartment of Human
every employer must report every new hire andResources1495 Edgewater St., NWSalem, OR
rehire.The employer must report the federally97304(503) 986-6090 has the following provisions
required elements of:Employee's nameEmployee'sfor child support deductions:When to start
addressEmployee's social securityWithholding?Next payday after 5 days after
numberEmployer's nameEmployersreceipt.When to send Payment?Within 7 days of
addressEmployer's Federal Employer IdentificationPayday.When to send Termination Notice?next
Number(EIN) This information must be reportedpaydayMaximum Administrative Fee?$5 per
within 20 days of the hiring or rehiring.Themonth.Withholding Limits?50% of disposable
information can be sent as a W4 or equivalent byearnings.Please note that this article is not updated
mail, fax or electronically.There is no penalty for afor changes that can and will happen from time to
late report in Oregon.The Oregon newtime.
hire-reporting agency can be reached at