Oregon Paycheck Calculator

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.

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:

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. 

Paying Payroll Taxes

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. 

For quarterly SUTA taxes, register on the Employment Department’s online portal.

Your municipality may also require certain tax registrations, so be sure to check with your local government for requirements. 

Using a Payroll Tax Service

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!