Oregon New Employer Information
Federal, State, and Local Tax Accounts
Federal Tax Accounts:
- If you don’t already have an Employer Identification Number (EIN, aka FEIN) you can easily apply for an EIN with the IRS online. There is no cost to apply for an EIN.
- The EIN is a unique nine-digit number assigned by the IRS to identify your business. Learn more by reading, “What Is an FEIN?”
- To read more about applying for an EIN, read our help article, “Your Step-by-step Guide on How to Apply for EIN.”
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 2.4% for 2022.
- Oregon also has a special offset tax of 0.09% per quarter in 2022. 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?”
Local Tax Accounts:
- Some Oregon employers are responsible for local taxes. Local taxes include Metro Supportive Housing Services (SHS) tax, Multnomah County Preschool for All (PFA) tax, Eugene Community Safety Payroll tax, Canby transit tax, Lane transit tax, Sandy transit tax, South Clackamas transit tax, TriMet transit tax, and Wilsonville transit tax. The Oregon Department of Revenue administers the TriMet and Lane County transit tax programs. The other transit tax programs are managed by individual districts/cities, so you will need to get an EIN and report.
- You must register with local tax accounts if you are responsible for local taxes.
- Metro SHS: Portland Revenue Online (PRO) system
- Multnomah PFA: Portland Revenue Online (PRO) system
- Eugene Community Safety Payroll tax: MUNIRevs website
- Canby transit tax: City of Canby website
- Lane transit tax: Oregon Secure Access System
- Sandy transit tax: City of Sandy Oregon website
- South Clackamas transit tax: South Clackamas Transportation District website
- TriMet transit tax: Oregon Secure Access System
- Wilsonville transit tax: Wilsonville, Oregon website
- For more information on Oregon local taxes, check out our help article.
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 by the employee and the second part is to be filled out by the employer.
- You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, read, “Form I-9 In a Nutshell.”
- Employees need to fill out Form W-4, Employee’s Withholding Certificate for federal income taxes.
- For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know.”
- Employees need to fill out Form OR-W4, Employee’s Withholding Certificate for Oregon income taxes.
- Oregan has three minimum wages. 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.
- From July 1, 2022 until July 1, 2023, the standard minimum wage is $13.50, the Portland Metro is $14.75, and the nonurban minimum wage is $12.50 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!