Oregon Paid Leave
Table of Contents
Background
The state of Oregon’s Paid Family Leave (PFL) program took effect in 2023. Employees and, if applicable, employers fund the Paid Family Leave program. All employers are responsible for withholding premiums from employee wages. Employers with 25 or more employees must also contribute. You may be exempt from participating if you offer a private paid family leave plan to employees that the Oregon Employment Department has approved.
For full detailed information regarding Paid Leave Oregon please visit the state website.
Contribution Rates
The total combined contribution rate for 2024 and 2025 is 1.0% per employee.
All Employers are required to withhold and collect the Employee share of the total premium.
Employees pay 60% of the 1% contribution rate. For example, if you have $1 million in payroll, the total employee withholding would be $6,000 (60% of the 1% contribution rate) per year.
Employers with 25 or more Employees (Large Employers)
Large employers must pay the employer contribution to Paid Leave Oregon. The rate is 40% of the total contribution rate (which is 1% for 2024 and 2025), up to the social security wage limit per employee, per year (2025 is $176,100, 2024 is $168,600)
Employers with fewer than 25 Employees (Small Employers)
Small employers are not required to pay the employer contribution, but can choose to contribute 0.40% for an assistance grant.
AccountEdge Setup
Employee Responsibility
All employers must collect the employees' share (0.6%) of the Oregon Paid Family Leave premium. The Oregon Paid Family Leave tax is automatically applied to all Oregon employees and updated as needed with new tax table releases.
Employer Responsibility
If you are required to contribute to the program, this will be handled through an Employer Expense. The PFML - OR Employer Expense is automatically created. The wage limit will be automatically updated, but you must set your PFML rate based on your employee count (refer to the details below).
Set Up Edit Oregon PFML Employer Expense
Go to Payroll > Payroll Categories > Expenses
- Select the PFML - OR Employer Expense and click Edit.
- The 2025 Employer PFML Rate is 0.4% and the Wage Limit is $176,100.00. The 2024 Employer PFML Rate is 0.4% and the Wage Limit is $168,600.00.
- Enter the appropriate PFML Rate based on the number of employees you have. (0.0% if you have less than 25 employees or 0.4% if you have 25 or more Employees).
- Click the Employee button to add PFML - OR to all Oregon Employees.