Contribution rate for Paid Leave Oregon also announced
NFIB Oregon members are reminded that their unemployment insurance taxes will increase slightly in 2024 and the 1% contribution rate to fund Paid Leave Oregon will remain in effect for 2024.
“As a self-balancing fund, Oregon’s Unemployment Insurance Trust Fund is one of the healthiest in the country,” according to a news release issued by the Oregon Employment Department. “The trust fund balance also earns interest, which helps keep employers’ tax rates lower. The goal of the statutory formula is to reach a balance between revenue and expenditures, where the state takes in about the same amount of money in taxes as it pays out in benefits. Oregon’s trust fund has recovered so well from the pandemic that the state has been able keep tax revenue lower than benefit payments for several years, and that will continue in 2024.”
As for paid leave, the department says, “The Paid Leave Oregon contribution rate for 2024 is 1% of employee wages and applies to up to $168,600 of wages. This is the Social Security taxable maximum wage amount for 2024. Contributions for Paid Leave Oregon are divided between employees and employers, with 60 percent of the rate paid by employees and 40 percent by employers.”
As noted by Paid Leave Oregon’s “Small employers” resource page, “Small employers with fewer than 25 employees are not required to pay the employer contribution to Paid Leave Oregon.” However, employees of small employers are still covered by Paid Leave Oregon, so small employers must withhold employees’ contributions, file quarterly reports, and pay employees’ contributions via Frances Online.
