Oregon Paid Family Leave

Effective January 1, 2023

The Oregon contribution rate for 2023 is 1% of each employee’s wages, up to a maximum of $132,900 for the year. Employees pay 60% of the contribution rate and employers pay 40% of the contribution rate. For example, if an employee made $1,000 in wages, the employee would pay $6 and the employer would pay $4 for this paycheck. Employers with fewer than 25 employees are not required to pay the employer portion of contributions.

See https://paidleave.oregon.gov/Documents/Paid-Leave-Oregon-Employer-Guidebook-EN-September-2022.pdf for more information.


To create a pay factor for this payroll tax, please follow these instructions:

  1. Backup your company data before making these changes.
  2. Go to Payroll/Configure/Tax Calculations and create a new Tax as follows. Click OK and Save Changes.
    Tax Calculations Oregon 2023 
  3. Go to Payroll/Configure/Taxes and assign the tax to a Remittance Vendor, select relevant earnings, and assign Liability and Expense accounts similar to the following.

    4. Taxes Oregon 2023

  4. Click OK and Save changes.
  5. Assign the Tax to your relevant employees.
  6. After posting your payroll, review the amounts in the Payroll/Print Taxes Activity report.

    7.