Payroll and Benefits Guide United States – Oregon
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
| 0.9% – 5.4% | State Unemployment Insurance (SUI), applied on the first 54,300 USD of an employee’s wages for the calendar year.The applied % varies based on the employer’s experience rating. |
| 2.40% | State Unemployment Insurance (SUI) – New Employer, applied on the first 54,300 USD of an employee’s wages for the calendar year. |
| 1 cent per hour worked | Workers Benefit Fund assessment rate |
| 6.20% | Federal Insurance Contributions Act (FICA) - Social Security, applied on salary up to 176,100 USD per year. |
| 1.45% | Federal Insurance Contributions Act (FICA) – Medicare. An additional 0.9% should be withheld from employees earning above 200,000 USD per year. |
| 0.60% – 6.00% | Federal Unemployment Tax Act (FUTA), applied on salary up to 7,000 USD per year. Employers who pay their state unemployment tax in full and on time are eligible for a 5.4% tax credit, reducing the FUTA rate to 0.6%. |
| 11.55%– 21.45% * plus 1.1 cents per hour worked | Total Employment Cost |
| Employee Payroll Contributions | |
| 1 cent per hour worked | Workers Benefit Fund assessment rate |
| 6.20% | Federal Insurance Contributions Act (FICA) - Social Security, applied on salary up to 176,100 USD per year. |
| 1.45% | Federal Insurance Contributions Act (FICA) – Medicare.
An additional 0.9% should be withheld from employees earning above 200,000 USD per year. |
| 7.65% – 8.55% * plus 1.1 cents per hour worked | Total Employee Cost |
| State Employee Income Tax | Annual |
| Single Filers | |
| 4.75% | 0 – 4,300 USD |
| 6.75% | 4,300 – 10,750 USD |
| 8.75% | 10,750 – 125,000 USD |
| 9.90% | Above 125,000 USD |
| Married Couples Filing Jointly | |
| 4.75% | 0 – 8,600 USD |
| 6.75% | 8,600 – 21,500 USD |
| 8.75% | 21,500 – 250,000 USD |
| 9.90% | Above 250,000 USD |
| Standard Deduction and Personal Exemption | |
| Single | 2,745 USD |
| Couple/Married – Joint Filing | 5,495 USD |
| Personal exemption | |
| For individual taxpayers, their spouses and qualifying dependents | 256 USD credit |
| Federal Employee Income Tax | Annual |
| Federal Tax – Singles | |
| 10.00% | Up to 11,925 USD |
| 12.00% | 11,925 – 48,475 USD |
| 22.00% | 448,475 – 103,350 USD |
| 24.00% | 103,350 – 197,300 USD |
| 32.00% | 197,300 – 250,525 USD |
| 35.00% | 250,525 – 626,350 USD |
| 37.00% | Above 626,350 USD |
| Federal Tax – Married, Joint Filing | |
| 0.00% | Up to 23,850 USD |
| 12.00% | 23,850 – 96,950 USD |
| 22.00% | 96,950 – 206,700 USD |
| 24.00% | 206,700 – 394,600 USD |
| 32.00% | 394,600 – 501,050 USD |
| 35.00% | 501,050 – 751,600 USD |
| 37.00% | Above 751,600 USD |
| Federal Tax – Heads of Households | |
| 10.00% | Up to 17,000 USD |
| 12.00% | 17,000 – 64,850 USD |
| 22.00% | 64,850 – 103,350 USD |
| 24.00% | 103,350 – 197,300 USD |
| 32.00% | 197,300 – 250,500 USD |
| 35.00% | 250,500 – 626,350 USD |
| 37.00% | Above 626,350 USD |
| Standard Deduction and Personal Exemption | |
| 15,000 USD | Single |
| 30,000 USD | Married Filing Jointly |
| 22,500 USD | Head of Household |
Minimum Wage
General
The State Minimum Wage in Oregon is dependent on the location of the work:
- 15.95 USD per hour = Portland metro (within the urban growth boundary, including parts of Clackamas, Multnomah, and Washington Counties) –
- 14.70 USD per hour – Standard (Benton, Clatsop, Columbia, Deschutes, Hood River, Jackson, Josephine, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Wasco, Yamhill, and parts of Clackamas, Multnomah, & Washington outside the urban growth boundary)
- 13.70 USD per hour – Non-urban (Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler Counties)
The Federal minimum wage rate is 7.25 USD per hour.
Payroll
Payroll Cycle
Employees in Oregon are paid either semi-monthly or monthly, with payments on set dates stipulated in the contract.
13th Salary
There is no legislation for 13th-month payments in Oregon.
Working Hours
General
In Oregon, the working week is a maximum of 40 hours per week, eight hours per day.
Overtime
Oregon adheres to the Fair Labor Standards Act (FLSA) and overtime is paid where employees work more than 40 hours in a single working week.
The employer must pay 150% of the regular salary rate for the extra hours worked as overtime. If employees are scheduled to work on weekends or rest days, no additional payment is required.
However, should an employer request an employee work in exceptional circumstances on these days, then overtime will be payable at 150% of the regular salary rate for the extra hours worked.
The Wage and Hour Division (WHD) of the Department of Labor (DOL) is responsible for the administration and enforcement of the FLSA.
Leave
Annual Leave (vacation)
Public holidays are not mandatory paid days off, but employers commonly allow workers to take federal holidays as paid days off.
Some companies might also agree to allow workers to take off state holidays; workers can find specific state holiday dates from their local government.
Usually when an agreed public holiday falls on a weekend, a day off in lieu is given on the Friday before or the Monday after the holiday.
| Date | Day | Holiday |
|---|---|---|
| January 1 | Thursday | New Year’s Day |
| January 19 | Monday | Martin Luther King, Jr. Day |
| February 16 | Monday | Presidents’ Day |
| May 25 | Monday | Memorial Day |
| June 19 | Friday | Juneteenth |
| July 3 | Friday | Independence Day (Observed) |
| September 7 | Monday | Labor Day |
| November 11 | Wednesday | Veterans Day |
| November 26 | Thursday | Thanksgiving Day |
| November 27 | Friday | Day after Thanksgiving |
| December 25 | Friday | Christmas Day |
Sick Days
It is common for an employer to follow the Family and Medical Leave Act (FMLA) which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons (maternity leave, serious illnesses or if the employee needs to care for a spouse or child).
In Oregon, employers with ten or more employees (unpaid if fewer than 10) or employers in large cities (500,000+ population) with six or more employees anywhere in the state (unpaid if fewer than six), are required to provide employees with paid sick and safety leave. Employees must provide one hour of paid sick leave for every 30 hours worked, up to an annual maximum of 40 hours of paid sick leave.
Employees are eligible for FMLA if they have worked for their employer for at least one year, completed a minimum of 1,250 hours over the past year, and worked at a location where the company employs 50 or more employees within 75 miles.
Maternity Leave
It is common for an employer to follow the Family and Medical Leave Act (FMLA) which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons (maternity leave, serious illnesses or if the employee needs to care for a spouse or child).
Employees are eligible for FMLA if they have worked for their employer for at least one year, completed a minimum of 1,250 hours over the past year, and worked at a location where the company employs 50 or more employees within 75 miles.
FMLA eligible employees are entitled to 12 working weeks of leave in any one year for a child’s birth and to care for the child within one year of birth.
In addition to the FMLA, Oregon Family Leave Act (OFLA) requires employers with 25 or more employees to provide 12 weeks of unpaid family leave within any 12 months or an additional 12 weeks leave for any OFLA purpose for women who are taking any pregnancy-related disability leave.
To qualify for this leave, an employee must have worked for at least 180 days and averaged 25 hours per week during the 180 days prior to the leave.
Paternity Leave
See parental leave below for more information.
Parental Leave
See sick leave above.
It is common for an employer to follow the Family and Medical Leave Act (FMLA) which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons (maternity leave, serious illnesses, or if the employee needs to care for a spouse or child).
Employees are eligible for FMLA if they have worked for their employer for at least one year, completed a minimum of 1,250 hours over the past year, and worked at a location where the company employs 50 or more employees within 75 miles.
FMLA eligible employees are entitled to:
- 12 working weeks of leave in any one year for a child’s birth and to care for the newborn child within one year of birth.
- Leave for the adoption or foster care of a child and care for the newly placed child within one year of placement.
- Care for the employee’s spouse, child, or parent who has a severe health condition.
- Leave in the event of a serious health condition that makes the employee unable to perform the essential functions of their job.
- Any qualifying exigency arising out of the fact that the employee’s spouse, son, daughter, or parent is a covered military member on “covered active duty.”
OR
- Twenty-six working weeks of leave during a single one-year period to care for a covered servicemember with a serious injury or illness if the eligible employee is the service member’s spouse, son, daughter, parent, or next of kin (military caregiver leave).
Other Leave
See parental leave above for more information.
In addition to the federal law USERRA, Oregon law provides Protection against discrimination for members of U.S. armed forces, reserves, National Guard, commissioned corps of the Public Health Service, and any other category of persons designated by the president in a time of war or emergency.
Employers with 25 or more employees must provide eligible employees with up to 14 days of unpaid protected military family leave when an employee’s spouse or same-sex domestic partner is called to active duty or has impending leave from deployment during a period of military conflict.
To qualify for this leave, an employee must have been employed for 180 days immediately preceding the leave and have worked at least an average of 25 hours per week during the 180 days in Oregon.
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
Except in mass dismissals or as provided for in an employment contract or a collective bargaining agreement, U.S. law does not impose a formal notice period to terminate an individual employment relationship and employment is stipulated at will.
This means that either the employer or the employee may end the employment relationship without giving either notice or reason, provided it is not illegal, notable discrimination on the grounds of a category protected by law, and as per the Federal Worker Adjustment and Retraining Notification Act (WARN).
The employment contracts of executives and other highly skilled individuals often incorporate a just cause termination clause which mandates that the employer may only terminate the employee for cause and lists the permissible grounds.
In such cases, the parties negotiate the foundations for a just cause termination case-by-case.
Notice Period
In Oregon, most employees are employed at will, and either party can terminate the employment relationship without notice. An employer’s policy or employee contract governs whether earned or unused vacation is paid on separation.
Still, employers will generally pay an employee for unused vacation days, provided the employee gave some advanced notice of resignation. There is no official notice period, but general practice is two weeks’ notice.
In mass dismissal cases, the Worker Adjustment and Retraining Notification Act (WARN Act) must be followed and employers must give 60 days’ notice to impacted employees.
Severance Pay
Except as otherwise provided in an employment contract or collective bargaining agreement, employers need not make severance payments to terminated employees. Employers who choose to offer severance would need to have the provisions within the employee’s contract and agreed upon by both parties.
Many employers choose to offer severance payment linked to the employee’s length of service. The most common is one week’s pay for every year of service.
Probation Period
No legal provision governs a formal trial/probation period.
However, it is common practice for employers to set a performance evaluation after an initially stated period of employment of 90 days.
Minimal Statutory Termination Costs
Some states require PTO balances to be paid out during termination, also any bonuses or commissions that were promised in the employment contract
Immigration
Foreign nationals without permanent resident status or a work visa are not permitted to work in the United States.
An employer seeking to hire a foreign national may file a petition with the United States Department of Homeland Security/United States Citizenship and Immigration Services (USCIS) for an employment visa on behalf of the prospective employee. If the petition is approved, the prospective employee must obtain a visa stamp from a United States embassy or consulate (Canadian citizens are exempt from this requirement).
To get a temporary U.S. work visa, an employer must file a petition with U.S. Citizenship and Immigration Services (USCIS). An approved petition must be part of the visa request. The types of visas include:
- H-1B – For applicants with a college degree hired to do specialized work. The visa is valid for three years and can be extended for an additional three years. The visa is connected to the employer that filed the petition. If there is a change of employer, the new employer must repeat the process. There are 65,000 H-1B visas available each year.
- H-1B1 – For applicants with a college degree from Chile and Singapore. The US government grants up to 1,400 visas to Chilean citizens and 5,400 from Singapore each year.
- H-2A – For temporary or seasonal agriculture work. It is limited to citizens of qualified countries. Usually valid for up to one year and can be extended to a maximum of three years.
- H-2B – For temporary non-agricultural work. These visas are limited to citizens of qualified countries. Usually valid for up to one year and can be extended to a maximum of three years.
- L – For intercompany transfers (people transferred from a foreign company to a U.S. branch of the company.) The applicant must have been employed at the company for a year before the transfer and work in a managerial-level position or higher with specialized knowledge.
- 0 – For people with extraordinary ability in science, arts, education, business, or athletics.
The standard procedure is to obtain a short-term work visa and then apply for an immigrant visa after the employee has started working in the United States.
For those seeking employment-based immigrant visas:
- E-1 – Highest priority employment for those with extraordinary ability in science, arts, education, business, and athletics.
- E-2 – For those with advanced degrees or exceptional ability.
- E-3 – For skilled workers and professionals, as well as unskilled workers.
- E-4 – Members of certain immigrant groups.
- E-5 – Immigrant investors in US companies (substantial investment).
Alternatively, an employer may sponsor a potential employee’s application for permanent resident status, referred to as a green card, if the employer can establish that the potential employee is a multinational executive/manager transferee, has unique skills, or has been offered a job in the United States.
The employer must have been unable to recruit a U.S. worker who meets the position’s minimum requirements.
All employers are obligated to verify that all individuals they employ are authorized to work in the United States.
VAT
General
Oregon has no States or local sales tax.
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Payroll and Benefits Guide
in United States – Oregon
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday |
|---|---|---|
| January 1 | Thursday | New Year’s Day |
| January 19 | Monday | Martin Luther King, Jr. Day |
| February 16 | Monday | Presidents’ Day |
| May 25 | Monday | Memorial Day |
| June 19 | Friday | Juneteenth |
| July 3 | Friday | Independence Day (Observed) |
| September 7 | Monday | Labor Day |
| November 11 | Wednesday | Veterans Day |
| November 26 | Thursday | Thanksgiving Day |
| November 27 | Friday | Day after Thanksgiving |
| December 25 | Friday | Christmas Day |
Questions & Answers