Oregon Salary Paycheck and Payroll Calculator

Calculating paychecks and need some help? Use Gusto’s salary paycheck calculator to determine withholdings and calculate take-home pay for your salaried employees in Oregon.

We’ll do the math for you—all you need to do is enter the applicable information on salary, federal and state W-4s, deductions, and benefits.

The information provided by the Paycheck Calculator provides general information regarding the calculation of taxes on wages for Oregon residents only. It is not a substitute for the advice of an accountant or other tax professional. The Paycheck Calculator may not account for every tax or fee that applies to you or your employer at any time. ZenPayroll, Inc., dba Gusto ("Gusto") does not warrant, promise or guarantee that the information in the Paycheck Calculator is accurate or complete, and Gusto expressly disclaims all liability, loss or risk incurred by employers or employees as a direct or indirect consequence of its use. By using the Paycheck Calculator, you waive any rights or claims you may have against Gusto in connection with its use.

Oregon Salary Paycheck Calculator

Payroll tax is likely almost as much fun as the constant rain in Portland. But when you’re prepared for it, it can be beautiful! Below we outline some essential basics and need-to-know information regarding Oregon payroll taxes and rules.

Oregon withholding tax

Oregon requires payment of state income tax. 

Since the federal withholding form no longer includes allowances and instead uses dependents, the federal Form W-4 won’t work for Oregon. Each new employee will complete an OR-W-4, Oregon Withholding form. They will provide information about their filing status, number of allowances, and any additional amount they want to be withheld from their pay. Some employees may be exempt from withholding, and they will indicate that on the form. 

With the information from OR-W-4, payroll software can help calculate the withholding amount.

Oregon unemployment tax

Oregon has a state unemployment tax.

In general, if you do not employ agricultural workers or domestic workers (such as an in-home nanny, house cleaner, etc.) and you paid more than $1,000 in a quarter, or have one or more employees for 18 weeks in a calendar year, you’ll pay unemployment insurance. This tax is paid exclusively by the company.  

These parameters change if employing agricultural workers. Paying $20,000 cash wages in a quarter or having ten or more employees in a 20 week period in a calendar year will trigger unemployment tax.

The calculation itself can become complicated, so it is advisable to enlist a professional’s assistance. 
For 2022, Oregon’s unemployment tax rate is an average rate of 1.97 percent on the first $47,700 paid to each employee. New businesses will pay 2.6% until 2024, when the rate will be adjusted to reflect past claims and payroll amounts.

Don’t forget about federal payroll taxes

The federal payroll tax system might seem more intimidating. We’ll take some of the confusion out of it. Let’s jump into some of the specifics of the most important federal tax issues you will want to be aware of.

Federal income tax

Every employer in the U.S. is required to withhold income tax from their employees unless they are exempt. You will obtain a Form W-4 from each employee. The W-4 will provide information on the employee’s dependents, filing status, and other variables, which, along with their wage information, will allow you to determine the appropriate withholding rate. Learn more about how to fill out Form W-4.

This tax is only paid by the employee, which you withhold and submit to the Internal Revenue Service (IRS).

FICA tax

Federal Insurance Contributions Act (FICA) is made up of the Medicare tax and the Social Security tax.
In 2022, the Social Security tax requires employers and employees to each contribute 6.2% of wages up to $147,000.The Medicare tax requires each to contribute 1.45% of all wages. See the IRS webpage for details, like maximum thresholds.

Additional Medicare tax

Certain employees may be responsible for the Additional Medicare tax. You’ll withhold 0.9% on any wages greater than $200,000 per employee per year.

This tax must be withheld, but the employee may not be required to pay this. That is something they will determine when they file their taxes.

FUTA tax

FUTA stands for Federal Unemployment Tax Act. Like the state, the federal government also has an unemployment tax. FUTA is an annual tax employers pay on the first $7,000 of each employee’s wages. The FUTA rate for 2022 is 6%, but most employers only have to pay 0.6% each year.

What else do I need to be aware of in Oregon?

Here are some additional tips related to payroll taxes in Oregon. 

  • New Hires: Based on Oregon law, employers must report new hires and rehires (including temp workers) within 20 days of hiring to the Division of Child Support of the Oregon Department of Justice
  • Federal salary threshold: The federal salary threshold is now $684 per week (equivalent to $35,568 per year for a full-year worker). The Department of Labor permits employers to count some bonuses, commissions, and other incentive payments toward meeting the standard salary level (up to 10%). Employees who earn at least $107,432 per year may qualify as “highly compensated.” See this Department of Labor fact sheet for details.
  • Paid sick leave: Oregon law requires providing sick leave to employees. The employees are allotted up to 40 hours of protected sick time, which is accrued by one hour for every 30 hours worked. However, this benefit is unpaid unless the employer has more than ten employees (six employees if in the Portland Metro area). 
  • Final paychecks: Oregon imposes hefty penalties if you do not pay wages owed to someone after quitting or being fired. Final paycheck requirements include the following:
    • If 48 hours of notice was given, then the final paycheck is due on the last day of employment. 
    • If less than 48 hours notice was provided, then the final paycheck is due within five business days or on the next regular payday, whichever comes first. 
    • If fired or laid off, the final paycheck is due by the end of the following day. 
  • Workers’ Compensation: Requirements to obtain Workers’ Compensation vary by state, this table outlines some of these requirements. If you determine that your company is required to purchase Workers’ Compensation insurance in your state, learn how to sign up for this insurance with Gusto. Sometimes, companies get a request for a workers’ comp audit—head to this article and click the workers’ comp audit reports dropdown for more information. 
  • Agriculture industry: If you are in Oregon’s agriculture industry, there are different rules to withhold tax. You have the option to withhold 2% of all wages above $300 in a calendar year. For additional considerations, check out the Oregon Department of Revenue page. 
  • Portland specific tax: A 1% tax on earnings greater than $200,000 is withheld from all wages earned in Portland to fund a supportive housing initiative. 
  • Multnomah County specific tax: A tax on all wages earned in Multnomah County came into effect on January 1, 2021, to fund the Preschool for All program. Tax rates are:
Multnomah County Preschool for All Tax
Single Filers
Annual IncomeTax rate
$0 – $125,0000.0%
over $125,000 to $249,9991.5%
over $250,0003.0%
*in 2026, the rates increase by 0.8%
Multnomah County Preschool for All Tax
Joint Filers
Annual IncomeTax rate
$0 – $200,0000.0%
over $200,000 to $399,9991.5%
over $400,0003.0%
*in 2026, the rates increase by 0.8%
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