The new Oregon paid family leave program, Paid Leave Oregon, is set to begin next year. This program is designed to give families, individuals, and employees the time and support they need to care for themselves, and others, during life’s most important moments.
When does Oregon Paid Family Leave Take Effect?
Oregon Paid Family Leave will begin to impact employers and families in 2023. Beginning January 1, 2023, employers with 25 or more employees will be required to pay into the program. On September 3, 2023, employees can apply for benefits.
Which Employers and Employees are Impacted and How?
Employers with more than 25 employees will be required to remit 1% of employee wages. Employers’ portion of this 1% is 0.40%.
Employees will contribute the remaining 0.60% of the 1% tax through payroll withholding. Employers with fewer than 25 employees are not required to pay the 0.40% but will still be required to withhold and remit the employee portion.
Small employers may elect to contribute the employer portion in order to obtain grants to assist with costs incurred as the result of employees taking paid leave.
Equivalent Plans
Employers with existing paid leave benefits can apply for relief from this tax. The employer plan must offer the same or greater benefits and cannot withhold more from employee’s wages than the Oregon Paid Family leave withholding amount. This relief must be granted by the Oregon Employment Department.
Next Steps for Employers
Employers are required to post a notice within the workplace regarding Paid Leave in Oregon. More compliance information with be forthcoming.
Contact your payroll processing company to be sure they are ready to help you implement this system by January 1, 2023. Visit the Paid Leave Oregon frequently asked questions page, or get in touch with our Oregon team to get more information.
