Payroll Oregon, Unique Aspects of Oregon Payroll Law and Practice

The Oregon State Agency that oversees theinformation on an employee's pay stub:Gross and Net
collection and reporting of State income taxesEarnings
deducted from payroll checks is:Department ofstraight time and overtime pay
Revenuehours worked
Revenue Bldg.pay period dates
955 Center St., N.E.employer's name
Salem, OR 97301employer's address
(503) 945-8100employer's phone number
allows you to use the Federal W-4 form to calculateannual pay statement for previous year by March 10
state income tax withholding.Not all states allow salaryif employee requests
reductions made under Section 125 cafeteria plans oritemized deductionsOregon requires that employee be
401(k) to be treated in the same manner as the IRSpaid no less often than every 35 days.In Oregon there
code allows. In Oregon cafeteria plans are not taxableare no statutory requirements concerning the lag time
for income tax calculation; not taxable forbetween when the services are performed and when
unemployment insurance purposes if used to purchasethe employee must be paid.Oregon payroll law
medical or life insurance 401(k) plan deferrals are notrequires that involuntarily terminated employees must
taxable for income taxes; taxable for unemploymentbe paid their final pay by the end of the first business
purposes.In Oregon supplemental wages are taxed atday after discharge or termination. Voluntarily
a 9% flat rate.W-2s are not required in Oregon unlessterminated employees must be paid their final pay
state requests them.The Oregon State Unemploymentearlier of next regular payday or 5 business days;
Insurance Agency is:Employment Departmentimmediately if 48 hours' notice is given.Deceased
Unemployment Insurance Taxemployee's wages must of $10,000 be paid to the
875 Union St., N.E.surviving spouse, children, or guardians (in equal
Salem, OR 97311shares).Escheat laws in Oregon require that unclaimed
(503) 947-1488wages be paid over to the state after three years.The
State of Oregon taxable wage base foremployer is further required in Oregon to keep a
unemployment purposes is wages up torecord of the wages abandoned and turned over to
$27,000.00.Oregon has optional reporting of quarterlythe state for a period of 3 years.Oregon payroll law
wages on magnetic media.Unemployment recordsmandates no more than $7.05 may be used as a tip
must be retained in Oregon for a minimum period ofcredit.In Oregon the payroll laws covering mandatory
three years. This information generally includes: name;rest or meal breaks are only that all employees must
social security number; dates of hire, rehire andhave 30 minutes rest after five hours of work; 10
termination; wages by period; payroll pay periods andminutes rest each 4 hours.Oregon statute requires that
pay dates; date and circumstances of termination.Thewage and hour records be kept for a period of not
Oregon State Agency charged with enforcing theless than two years. These records will normally
state wage and hour laws is:Bureau of Labor andconsist of at least the information required under
IndustriesFLSA.The Oregon agency charged with enforcing
Wage and Hour DivisionChild Support Orders and laws is:Department of
800 N.E. Oregon St., Ste. 1070Justice
Portland, OR 97232Division of Child Support
(503) 731-4200Department of Human Resources
minimum wage in Oregon is $7.05 per hour.The1495 Edgewater St., NW
general provision in Oregon concerning payingSalem, OR 97304
overtime in a non-FLSA covered employer is one and(503) 986-6090
one half times regular rate after 40-hour weekhas the following provisions for child support
(10-hour day in some industries).Oregon State new hiredeductions:When to start Withholding? Next payday
reporting requirements are that every employer mustafter 5 days after receipt.
report every new hire and rehire. The employer mustWhen to send Payment? Within 7 days of Payday.
report the federally required elements of:Employee'sWhen to send Termination Notice? next payday
nameMaximum Administrative Fee? $5 per month.
Employee's addressWithholding Limits? 50% of disposable earnings.
Employee's social security numberPlease note that this article is not updated for
Employer's namechanges that can and will happen from time to
Employers addresstime.Charles J. Read, CPA has been in the payroll,
Employer's Federal Employer Identification Numberaccounting and tax business for 30 years, the last
(EIN) This information must be reported within 20 daysfifteen in private practice. Mr. Read is the author of
of the hiring or rehiring."How to Start a New Business".For Professional
The information can be sent as a W4 or equivalentPayroll services at a Budget Price go to a Paperless
by mail, fax or electronically.Payroll Company.Go to For a full service payroll
There is no penalty for a late report in Oregon.Theservice bureau with CPA's on staff.See an excerpt of
Oregon new hire-reporting agency can be reached atMr. Read's interviews from William Shatners
503-378-2868 or on the web at does not allow"Heartbeat of America" television show on the
compulsory direct depositOregon requires the followingwebsites linked above.