Oregon is implementing a Paid Family and Medical Leave Insurance program (Paid Leave Oregon) funded by a new payroll tax. As this new tax takes effect on Jan. 1, 2023, we wanted to provide more information about this change.
What you need to know
- ADP® will automatically set up your Paid Leave Oregon tax profile with the same service level as your OR SUI tax profile.
- Paid Leave Oregon contributions are a percentage of taxable wages. The rate for 2023 is 1 percent, up to $132,900 in wages. Employees pay 60 percent of the set contribution rate and employers employing 25 or more nationwide pay 40 percent.
- Employers employing fewer than 25 employees nationwide are not required to pay the employer portion (40 percent) of contributions but must withhold and submit the employee portion of contributions. However, small businesses choosing to pay into the program will be eligible for grant programs to help cover the cost of replacement workers.
- Beginning Sept. 3, 2023, eligible employees may receive up to 12 weeks of leave and wage replacement benefits for covered reasons per benefit year. In some pregnancy-related situations, eligible employees may be able to take an additional two weeks.
- ADP is in the process of finalizing updates to our system to support the Paid Leave Oregon withholding and deposit.
- You may receive a notification in ADP SmartCompliance® when this new tax profile is set up.
For more details about Paid Leave Oregon requirements, please review the Agency website. If you have any other questions, please reach out to your service team – we’re always here to help.