Oregon Paid Leave

The Paid Leave Oregon program is the state’s implementation of family medical leave insurance (FMLI). It provides employees with the time they need to care for themselves and loved ones. It's funded 40% by the employer and 60% by the employee.

This tax consists of these components.

• Family Leave Insurance Employee

• Family Leave Insurance Employer

Before you implement Oregon paid leave, there are some areas you need to consider.

• What are the employee eligibility criteria

• How to override the legislative rates and percentages

• How to opt out your organization

• How to exclude individual employees

• How to cost the tax

• What wage basis rules it follows

For further info, see the following sections.

What are the employee eligibility criteria

To be eligible for the Oregon Paid Leave tax, an employee must have:

1. Valid tax card with a tax reporting unit (TRU) association

2. Oregon identified as one of the following

   • Family leave insurance (FLI) state on the person's Tax Jurisdictions card

   • State unemployment insurance (SUI) state on their Tax Withholding card (if FLI state is undefined)

How to override the legislative rates and percentages

To override the legislative tax rates and percentage distribution between employee and employer components:

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

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

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

2. Open the calculation card for editing.

3. In Component Groups, select Oregon.

   Create it if it doesn't exist.

4. In Calculation Components, select State FLI.

   Create it if it doesn't exist.

5. Click Enterable Calculation Values on the Calculation Card.

6. Click Create.

7. To change the total tax rate, search for and select FLI combined rate.

   To override the distribution between the employee and employer rates, use FLI employee percentage and FLI employer percentage. Enter the values as percentages. For example, enter 50% as 50. The sum of these percentages must equal 100%.

   To override the annual wage limit, use Family leave insurance wage limit.

8. Save your work.

How to opt out your organization

To opt out an entire organization:

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. Open the calculation card for editing.

3. In Component Groups, select Oregon.

4. In Calculation Components, select State FLI.

   Create it if it doesn't exist.

5. Select Enterable Calculation Values on the Calculation Card.

6. Click Create.

7. Search for and select the appropriate calculation value.

   • FLI employee tax exemption

   • FLI employer tax exemption

8. In Value, select the appropriate exemptions status.

9. Save your work.

How to exclude individual employees

To exclude an individual employee from this tax:

1. Open the person's tax card for editing.

2. Open the Oregon component for editing.

3. In Withholding Exemption, select the appropraite exemption for Family Leave.

4. Save your work.

How to cost the tax

To process FMLI taxes, cost these predefined elements using the FLI Tax Calculated or Tax Calculated input values.

• Family Leave Insurance Employee Tax

• Family Leave Insurance Employee Tax Not Taken

• Family Leave Insurance Employer

What wage basis rules it follows

When configuring the wage basis rules for Oregon Paid Leave, find them under State FLI in the Component Group Rules task.