Payroll tax basics for employers
|Oregon payroll taxes include: |
- Unemployment insurance
- TriMet and Lane transit taxes
- Workers' Benefit Fund
NOTE: You'll receive one Business Identification Number (BIN) for all above programs.
1. Before you hire
View the following slideshows. This information will show you how to:
- Register for a payroll tax account.
- Report and pay Oregon payroll taxes.
Payroll Tax Basics Slideshow
Business Identification Number (BIN) Slideshow
2. Once you've hired employees
You are required to register with the State of Oregon by submitting a Combined Employer's Registration form. Before you pay your employees, be sure to:
3. Business identification number (BIN)
Your BIN is a state tax identification tax number used to identify all your payroll tax payments. Do not confuse this with your business registry number.
- Register by paper, and receive your BIN by mail in about three weeks.
- Register online through the OBR for your business registry number and BIN, and receive your BIN in as little as one to three working days.
- We will send you reporting instructions, Oregon Employer Tax Reporting information (OTTER), and Oregon Tax Coupons (OTC) unless you are using electronic funds transfer (EFT).
- Use your BIN to report, pay, or get information about: withholding, unemployment tax, transit taxes (TriMet and Lane Transit), and Workers' Benefit Fund assessment.
- Include your BIN on all correspondence, returns, and payments.
4. Making changes to your business information
Use the Business Contact Change Form when you:
Use the Business Change in Status Form when you:
- Need to update addresses and phone numbers; and/or
- Need to update offsite payroll services, accountants or bookkeepers.
- Need to update withholding, unemployment, and transit tax information on an existing BIN;
- Stop or start working in a transit area;
- No longer have employees; and/or
- Need to update owner/officer information.
Use the Central Business Contact Change (CBCC) form to electronically update:
- Addresses and phone numbers; and/or
- Offsite payroll services, accountants, or bookkeepers.
Changing your business structure
If you plan to change your business structure, you need to complete the Business Change in Status Form and/or a new Combined Employer's Registration. Examples of business structure changes that require a new registration include:
- Changing from a sole proprietor to a partnership or corporation.
- Changing from a partnership to a sole proprietor.
- Adding or removing a spouse as a liable owner.
- Changing from any business structure type to a Limited Liability Corporation (LLC).
To report changes in status that affect your workers' compensation insurance and Workers' Benefit Fund assessment (WBF), call the Department of Consumer and Business Services (DCBS) in Salem at (503) 378-2372.
5. How to pay Oregon payroll taxes
Oregon withholding taxes are due the same time as your federal taxes. Payment for unemployment, transit taxes, and the Workers' Benefit Fund assessment are due the last day of the month following the end of the calendar quarter.
- Electronic funds transfer (EFT)—If you pay your federal taxes electronically, you must also pay your Oregon combined payroll taxes the same way. You can voluntarily choose to submit your Oregon tax payments electronically even if you do not meet the federal requirements. To register for EFT, complete the debit or credit agreement. For more information on electronic filing, call us
- Web Pay—Make electronic payments by logging on to our online
Tax Payment System.
- Paper/forms—Mail your check with the Oregon Tax Coupon (OTC).
Complete and attach a payment coupon with every payment.
6. Options for filing quarterly tax reports (Form OQ)
- Oregon Tax Employer Reporting System (OTTER).
- Secure Employer Tax Reporting System (SETRON).
- Paper Combined Payroll Tax Reports (Form OQ).
- Interactive voice response system (IVR). (This can only be used to report a quarter with no payroll/no hours worked.)
For information on OTTER or SETRON, call the Oregon Employment Department (OED) in Salem at 503-947-1544.
To report zero tax using IVR, call OED in Salem at (503) 378-3981.
Order paper forms online, or call us at (503) 945-8091.
7. Year-end reconciliation information
Oregon Annual Withholding Reconciliation Report (Form WR)
You must file an Oregon Annual Withholding Reconciliation Report (Form WR), even if you submit your W-2 information electronically. (See W-2 income and wage information return e-services (iWire).
Note: Effective for calendar year 2009, businesses and all payroll service providers are required to report W-2 information electronically
Form WR is due the last day of February after the tax year. If you stop doing business during the year, the report is due within 30 days of your final payroll.
8. Resources on employer payroll taxes
- Visit Starting a Business in Oregon.
- Register for Payroll Tax News to get up-to-date payroll tax information by e-mail.
- E-mail tax-related questions to: firstname.lastname@example.org
- For BIN questions, call us at (503) 945-8091, or (800) 356-4222 toll-free from an Oregon prefix.
- For unemployment insurance tax questions, contact OED at (503) 947-1488 or by e-mail at email@example.com.
- For WBF assessment questions:
- General information: call DCBS in Salem at (503) 947-7815.
- Reporting information: call DCBS in Salem at (503) 378-2372.