Oregon New Employer Information
Congratulations on your decision to become a new employer in Oregon! You will need a few things in place before you run your first payroll:
Federal and State Tax Accounts
Federal Tax Accounts:
- Although it is not required, we suggest you register online for the EFTPS (Electronic Federal Tax Payment System).
- EFTPS is an easy way to pay your federal taxes online or view any tax filings made on your behalf by Patriot. To find out more about the EFTPS, read our article, “What Is EFTPS?”
State of Oregon Tax Accounts:
- Oregon new employers will need to register their businesses with the Oregon Secretary of State by registering online with the Secure Access System.
- You will receive an Oregon BIN. This will be your business identification number for your state income taxes (SIT), state unemployment insurance (SUI), Workers’ Benefit Fund Assessment, and the local TriMet or LTD taxes.
- For more information, visit the Oregon Department of Revenue.
- Employers in Oregon will receive a new State Unemployment Tax Assessment (SUTA) rate every year.
- The Oregon new employer SUTA rate is 2.6% for 2021.
- Oregon also has a special offset tax of .12% for the 1st quarter and .09% for the 2nd, 3rd, and 4th quarters for 2021. This is for your information only. As a Patriot customer, we calculate this automatically for all Oregon payroll without you needing to enter anything in the system.
- To learn more about SUTA, read our article, “What Is SUTA Tax?”
Setting Up Your New Employee:
- Fill out the required Form I-9 for employee verification for working in the USA.
- This is a two-part form. The first section is filled out the by the employee and the second part is to be filled out by the employer. Learn more about Form I-9.
- You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, read, “What Should Be in an Employee File?”
- Oregan has three minimum wages. From July 1, 2020 until July 1, 2021, the standard minimum wage is $12.00, the Portland Metro is $13.25, and the nonurban minimum wage is $11.50 per hour.
- From July 1, 2021 until July 1, 2022, the standard minimum wage is $12.75, the Portland Metro is $14.00, and the nonurban minimum wage is $12.00 per hour.
- By law, you are required to post the minimum wage poster for your employees.
Once you have all the necessary information, you will be able to set up your payroll for your business.
You will want to keep all payroll records for at least three years. For more information, read our help article, “What Employers Should Know About Employee Payroll Records.”
Let us know if you have any questions. We are here to help!
