Oregon Unemployment Insurance Guide for Employers 

Like all states, Oregon has an unemployment insurance program to help employees in the state who are unfortunate enough to have been laid off or otherwise qualify for unemployment. Employers in Oregon need to understand what is required regarding Unemployment Insurance such as taxes, reporting, and recordkeeping.

Here is everything businesses need to know about Oregon Unemployment Insurance.

When it comes to Oregon Unemployment Insurance, there are things to know for both employers and employees. Employers have certain responsibilities regarding taxes, reporting, and recordkeeping, while employees need to know how and when to apply if eligible for benefits.

Oregon Unemployment Insurance Employer Requirements

In Oregon, qualified employees can apply and reapply for and reap unemployment benefits under specific circumstances.

While Oregon Unemployment Insurance (UI) is administered by the state, including benefits, Oregon employers still have responsibilities to be aware of. First and foremost, businesses subject to UI laws in Oregon must register through the Secretary of State’s Office using the Central Business Registry.

Registering for unemployment insurance is vital for all businesses, no matter which state. Employers will want to make sure every step in the business’s state registration process is completed, including payroll tax registration beyond state unemployment insurance.

What Employers in Oregon Need to Provide Unemployment Insurance Coverage?

In Oregon, employers must generally provide unemployment insurance to employees if the employer pays $1000 or more to employees in a single calendar quarter, or has at least one employee in each of 18 weeks during a calendar year.

There are special considerations for Oregon employers in the agriculture industry (UI PUB 210) and Domestic (homecare) workers (UI PUB 207)

Oregon Unemployment Insurance Taxes

Oregon Unemployment Insurance is financed by Oregon employers.

Generally, private employers subjected to providing UI coverage for employees must pay a quarterly tax directly to the State of Oregon. For domestic employers, this is done annually. 

State and federal employers subjected to providing UI coverage must reimburse the state for UI benefits paid to former employees.

Local governments and non-profit private sector employers have the option of choosing either of the above two options for paying UI taxes.

How Are Unemployment Insurance Taxes Collected?

Collected taxes are deposited into a trust fund, used to pay UI benefits. The money to administer the Unemployment Insurance program comes from a federal tax, created by the Federal Unemployment Tax Act (FUTA).

How Much Are Oregon Unemployment Insurance Taxes?

Employers can find the UI tax rate on the Oregon Employer-Account Access website, now referred to as Frances Online.

Employers will also have the UI tax rate mailed for the next calendar year by November 15th.

Effective 2025, UI tax rates will return to the standard calculation rules that were established before the COVID-19 pandemic.

The Oregon Unemployment Insurance tax rate for new employers is 2.4% of taxable
wages up to $54,300 for the 2025 calendar year.

How to Report Wages in Oregon for Unemployment Insurance

Oregon employers must report wages, including draws, in the quarter in which UI benefits were paid or in the quarter in which the individual received any compensation other than cash.

Hours worked are reported in the quarter actually last worked.

What Is Considered Wages in Oregon?

In Oregon for Unemployment Insurance purposes, wages are payments made to an individual for personal services, and the cash value of all compensation to that individual (whether through cash or another medium).

Wages in Oregon include (but are not limited to):

• Salaries
• Hourly pay
• Piece rate
• Payments by the job
• Vacation, sick, and holiday pay
• Disability
• Guaranteed wage payments
• Commissions
• Dividends
• Distributions
• Bonuses
• Gifts and prizes
• Fees
• Tips

Exceptions

There are certain exceptions to what is considered to be wages in Oregon regarding Unemployment Insurance. These include:

• Commissions paid on the following specific services:
  
  • Newspaper advertising salesperson
  • Real estate broker or principal real estate broker
  • Insurance solicitor or producer
  • Securities agent or salesperson
  • Individuals soliciting contracts for home improvements
  • Door-to-door sales of consumer goods in the home
• Individuals providing services related to ski activities on a volunteer basis, and receive no other compensation than a ski pass worth $50 or less
• Nontaxable payments, such as:
  
  • Sickness and accident disability payments under workers’ compensation law, paid by employee-funded plans, or payments made after 6 months from the last date of employment
  • Certain dependent care assistance programs
  • Fees paid to directors of a corporation for serving as a board member

Important to note is that when employing family members, depending on the type of business entity and the type of family relationship, certain wages are not subject to UI taxes.

Oregon Unemployment Insurance Recordkeeping Requirements

Oregon employers are required to maintain payroll records of employees for a minimum of three calendar years. 

Records should include: 

• Total payroll by calendar quarter and by individual
• Name
• Social Security Number
• Hours worked
• Pay for each pay period and date
• Date employee was hired, rehired, or returned from vacation, illness, temporary layoff, or other reason
• Date of termination (if applicable)

Records must be available to the Employment Department upon request.

Oregon Unemployment Insurance Employee Benefits

To qualify for Oregon Unemployment Insurance Benefits, an individual must have worked for a covered employer for at least 500 hours or have earned at least $1,000.

Qualified individuals shall receive a benefit of 1.25% of the total base year gross earnings. The “base year” refers to the year of work in which the individual gained eligibility for UI benefits. 

Valid claims are good for up to 52 weeks before expiring and may yield up to 26 weeks of paid benefits during that time. However, individuals must meet weekly eligibility criteria to receive benefits on the claim. This criterion includes:

• Why the individual is out of work or not working full-time
• Confirmation on whether or not the individual is able to work or is available for work
• Confirmation that the individual is actively seeking work
• Meeting the weekly work and earnings criteria

New claims may not be filed until the most recent claim expires, even if all 26 weeks of benefits have been exhausted.

Get Help Managing Oregon Unemployment Insurance Taxes and Employer Requirements

Compliance challenges with Oregon Unemployment Insurance can be easily managed with the help of an Oregon payroll service. When it comes to taxes, UI reporting, and recordkeeping, cloud-based payroll solutions can help make things especially easier.

For help managing unemployment insurance in Oregon, contact us today or get started with finding a provider now.

Guest Author: Scott Herson-Hord

Scott Herson-Hord is the CEO of Great Northern Staff Administrators (GNSA), an Oregon payroll and HR services company that specializes in serving small to mid-size businesses with administrative solutions to streamline back-office processes from benefits to human resources. Starting his career in finance and working more than 10 years as a controller for various companies, Scott leveraged this experience over the next 22 years with GNSA to become one of the pacific northwest’s foremost experts in human capital management (HCM).