Oregon Paid Family and Medical Leave (PFML) Setup Guide

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 at https://paidleave.oregon.gov.

Contribution Rates

All Employers

All employers are required to withhold and collect the employee share of the total premium. Employees pay 60% of the 1% contribution rate (0.6%). For example, if you have $1 million in payroll, the total employee withholding would be $6,000 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 (0.4%), up to the Social Security wage limit per employee, per year.

Employers with Fewer than 25 Employees (Small Employers)

Small employers are not required to pay the employer contribution, but can choose to contribute 0.4% for an assistance grant.

Note: Employers can use the contributions calculator (https://paidleave.oregon.gov/contributions-calculator) to estimate their contribution. Employers can also choose to pay all or a portion of the employee contribution as an added benefit.

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.

Set Up Oregon PFML Employer Expense:

1. Go to Payroll > Payroll Categories > Expenses
2. Select PFML - OR Employer Expense and click Edit
3. Verify the wage limit:
   • 2026: $184,500
   • 2025: $176,100
4. Enter the appropriate PFML Rate based on the number of employees you have:
   • Fewer than 25 employees: 0.0% (or 0.4% if choosing to participate for assistance grant)
   • 25 or more employees: 0.4%
5. Click the Employee button to add PFML - OR to all Oregon Employees.