Oregon Paid Leave

Paid Leave Oregon is a program created to ensure individuals have the time they need to care for themselves and loved ones. The program is funded 40% by the employer and 60% by the employee.

This tax consists of these components.

• Family Leave Insurance Employee

• Family Leave Insurance Employer

However, there are some areas you should consider.

• What is the employee eligibility criteria

• How to override the tax rate

• How to opt your organization out of this tax

• How to exclude individual employees

• How to cost Paid Family and Medical Leave taxes

• What wage basis rules it follows

Employee Eligibility Criteria

The payroll process automatically imposes this tax on Oregon employees unless they are excluded.

Override the Tax Rate

To override the tax withholding rate:

1. To change this tax at the payroll statutory unit (PSU) level, start the Legal Entity Calculation Cards task from your implementation project.

   Use the Legal Reporting Unit Calculation Cards task to change this tax at the tax reporting unit (TRU) level.

   Settings at the TRU level override those at the PSU level.

2. In Component Groups, select the Oregon state regional node.

3. In Calculation Components, select State FLI.

   Create it if it doesn't already exist.

   1. Select the Oregon regional node in Component Groups.

   2. Click Create in Calculation Components.

   3. In Create Calculation Component, select State FLI.

   4. Select OR.

4. Click Enterable Calculation Values on the Calculation Card.

5. Add the FLI Combined Rate, and set the appropriate value.

6. Save your work.

Note: You can also override these values.

Opt Out Your Organization

There are cases where you want to exempt an organization from this tax. For further info, see the Oregon state tax authority website.

To opt an organization out of these taxes:

1. To opt out at the PSU level, start the Legal Entity Calculation Cards task from your implementation project.

   To opt out at the TRU level, start the Legal Reporting Unit Calculation Cards task.

2. In Component Groups, choose the Oregon state regional node.

3. In Calculation Components, choose State FLI.

   Create it if it doesn't already exist.

   1. Select the Colorado regional node in Component Groups.

   2. Click Create in Calculation Components.

   3. In Create Calculation Component, select State FLI.

   4. Select OR.

4. Select Enterable Calculation Values on the Calculation Card.

5. Select Exempt from Family Leave Insurance.

6. In Value, enter Yes.

7. Save your work.

Exclude Individual Employees

To exclude an individual employee from this tax:

1. Use the Calculation Cards task to open the person's Tax Withholding card editing.

2. Choose the Oregon state regional node.

3. In Withholding Exemption, choose Yes for Exempt from Family Leave Insurance.

Cost the Tax

To process FLI taxes, cost the following predefined elements using the FLI Tax Calculated or Tax Calculated input value.

• Family Leave Insurance Employee Tax

• Family Leave Insurance Employee Tax Not Taken

• Family Leave Insurance Employer

For further info, see Payroll Costing of Elements for the US in the Help Center.

Wage Basis Rules

The Oregon rules follow Oregon state unemployment insurance (SUI) wage basis rules.