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Starting January 1, 2023, Oregon requires that all employers withhold premiums from employees' checks for Paid Leave Oregon unless the employer has received approval for a private plan. Click here for more information regarding Paid Leave Oregon on the Oregon website. Employers and their employees are both responsible for funding the program and may split the cost 60/40. The premiums are set to 1.0% of the employee’s wage, with 0.6% paid by the employee and 0.4% paid by the employer. If the business employs 25 or more employees, they will participate and pay into the program. Employers and employees share the costs, which means the company will pay 40% of the contribution and the employees will pay 60%. If the business is a small employer – with fewer than 25 employees – the company is not required to make payments, but will still need to collect and submit the employees’ contributions. You will have to select OR as the Default FamLv State on the Company Payroll Defaults tab and set up a Family Leave Employee payroll item in each company any time before the first paycheck in 2023. The employee rate has been set up by us on the Fam Emp tab in Setup>Payroll Taxes. This is a global setting and if you change this rate you will be changing it for all employees for all clients. For clients with an approved private plan, you will have to mark each employee as Fam EMP exempt on the Exemptions tab. Select Setup>Company Information and select the Company Payroll Defaults tab as shown below. Select OR from the list as the Default FamLv State. Go to Setup>Payroll Items and create a Family Leave Employee item as shown below. If a client has 24 or fewer employees, you do not have to set up an employer portion of the tax. To set up the employer portion of the premium for clients with 25 or more employees: Do NOT add these items to the Payroll Templates Set up an Other Income item as shown below to reimburse the employee and add it to the bottom grid of the payroll template(s). Set up an Other Income item as shown below to reimburse the employee and add it to the top grid of the payroll template(s) below the Family Leave Employee item. You will have to enter the amount that should be withheld in both fields.
Paid Leave Oregon
If the employer is paying the employee share of the tax for Payroll Check writing:
If the employer is paying the employee share of the tax for After-the-Fact Payroll:
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