Employers: What do you need to know about Paid Leave Oregon?
Paid Leave Oregon is a new program that ensures individuals, employers, and families have paid time off when they need it the most. Your responsibilities as an employer depend on the size of your business.
How It Works:
Starting Jan 1, 2023, employees and employers with 25 or more employees pay into the program. Note for:
Employers with fewer than 25 employees: you do not need to make the employer contribution, but you still need to collect employee contributions
Self-employed individuals and independent contractors: you are not required to participate, but can choose coverage
2. Starting Sept. 3, 2023, employees are eligible to apply for benefits
3. Paid Leave Oregon will manage employee applications and pay employees a portion of their wages while on leave
What Does This Mean for Your Business?
If you are an employer in the state of Oregon, and are processing payroll, your payroll provider should withhold and remit the taxes due on your behalf. Companies like Gusto, Paychex and ADP are automatically doing this. If you are using another provider or self-preparing your payroll tax returns, be sure to use your Frances Online account to remit the tax due.
What if I don’t process payroll? I’m a sole-proprietor…
As a self-employed individual, you are NOT automatically covered under this program. You can choose to participate if your work is in Oregon and you earned at least $1,000 in Oregon net income from self-employment in the prior tax year. To find out more, check out the Self-Employed page on the Paid Leave Oregon site.
If you’ve decided you want coverage, you can create a Frances Online account and apply here.
How are the contributions calculated as a sole-proprietor? The total contribution rate is 1%. You will be responsible for paying 60% of that contribution (0.6%). You will then submit your tax return at YE for review for final tax due calculations/verification. Calculate your contribution here.
What if I don’t want to Participate?
If your company already has a PTO program and is not interested in participating in Paid Leave Oregon, you may apply to have your Equivalent Plan approved. The state of Oregon will approve your Equivalent Plan if it offers the same or greater benefits than Paid Leave Oregon. The plan must be employer-administered or fully insured by an insurance company approved to sell Paid Leave Oregon products.