Daniel Eisner is a payroll specialist with over a decade of practical experience in senior accounting positions.
Updated on July 21, 2024
Curious about your net earnings after all taxes and deductions in Oregon?
Our Oregon Paycheck Calculator is designed to provide the answers.
This practical tool simplifies paycheck calculations by including all necessary withholdings and Oregon-specific deductions.
Get a clearer understanding of your paycheck’s breakdown and enhance your financial planning with the help of our reliable paycheck calculator.
State
Where are you employed?
Salary
How much do you get paid annual?
Salary frequency
How often are you paid?
Marital status
What is your federal filing status?
Dependent(s)
Children under 17 and students under 24
All other dependents
Employee Location
Where do you live?
Benefits and Deductions
Help
The addition of employee benefits such as 401(k)s and health insurance can affect
how your paycheck is calculated. Please add any deductions for benefits offered by
your company.
Choose a calculation method:
Fringe Benefits
Help
Fringe benefits are additional non-cash benefits offered by employers and are
often taxable, which can affect an employee’s paycheck and final take-home pay.
Please skip this section if you don’t use any of these benefits.
Choose a calculation method:
Gross Pay
$0
Income taxes
0%
$0
Federal Income Tax
0%
$0
Alabama State Tax
0%
$0
Local Tax
0%
$0
FICA taxes
0%
$0
Social Security
0%
$0
Medicare
0%
$0
Additional Medicare
0%
$0
Pre tax
0%
$0
Post tax
0%
$0
What Are Payroll Taxes?
Payroll taxes withheld from employee paychecks fund Social Security and Medicare, to which the employer also makes payroll tax contributions.
The Social Security tax is paid by both the employee and the employer at a rate of 6.2% of the employee’s wages. The Medicare tax is also paid by both employee and employer, but at a rate of 1.45%.
Employers are also required to pay taxes under the Federal Unemployment Tax Act (FUTA) and the State Unemployment Tax Act (SUTA). The employer must also collect federal income tax from employee paychecks, and pay that amount to the IRS. The rate is determined by the employee’s tax bracket.
Each state also has specific state payroll taxes that must be withheld and paid.
Oregon Payroll Taxes
There are four Oregon employer payroll taxes to keep track of in addition to Social Security and Medicare.
Employers contribute to:
State Unemployment Tax Account (SUTA)
Transit Tax (Only in certain localities)
Employees pay into:
State Income Tax
Statewide Transit Tax
SUTA
Under SUTA, companies must allocate a portion of their payroll taxes toward the state’s unemployment program, which pays out benefits to the unemployed until they find a new job or the predetermined benefit runs out.
The current taxable wage base is $47,700, with rates ranging from 0.9% to 5.4% based on an experience factor. If you’re a new employer, you will use a standard rate of 2.4%.
Transit Tax
Oregon has two employer-paid transit taxes, according to the Oregon Secretary of State website, which are as follows:
TriMet tax is an employer-paid excise tax based on payrolls for services performed in Multnomah and parts of Washington and Clackamas counties.
Lane Transit District covers the Eugene/Springfield area of Lane County. This excise tax is based on the same principle as TriMet.
For employees, the tax rate is 0.001%, or $1 for every $1,000 in wages. The tax applies to Oregon residents and nonresidents working in the state. Find more information on the Oregon Department of Revenue website.
State Income Tax
Oregon state income tax rates are based on income and filing status. You can find withholding tax tables on the Oregon Department of Revenue website.
Just as you need an EIN to pay federal payroll taxes, in Oregon you’ll need to register for state withholdings with the Oregon Business Registry and register to make payments with the Oregon Department of Revenue.
In Oregon, payroll and payroll taxes come with countless laws and restrictions, which is why many business owners turn to a payroll service provider to ensure their business remains fully compliant. It’s usually less expensive than creating a new staff position for managing payroll, and relatively easy.
You’ll just send over your digital timesheets and relevant information and the service provider will take care of the calculations, payments and taxes, freeing you up to focus on growing your business.
We highly recommend hiring a payroll service — as a busy entrepreneur, you won’t regret it!