| Payroll tax basics for employers |
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This page will show you how to:
- Register for a payroll tax account.
- Report and pay Oregon payroll taxes.
Payroll taxes include:
- Withholding
- Unemployment insurance
- TriMet and Lane transit taxes
- Workers' Benefit Fund
Once you've hired employees
- Complete the Combined Employer's Registration form.
- Purchase workers' compensation insurance, if required.
- Revenue will send you reporting instructions, Oregon Tax Employer Reporting Software (OTTER) and Oregon Tax Coupons (OTC), unless you are using Electronic Funds Transfer (EFT).
- You'll make your first deposit at the same time your federal tax liability is due.
- Report payroll taxes quarterly using OTTER, the Secure Employer Tax Reporting System (SETRON), or the Oregon quarterly form.
- File an end-of-the year withholding annual reconciliation report (Form WR, available here.)
Your Business Identification Number (BIN)
- Once you register, you'll get a business identification number (BIN) by mail in about three weeks.
- Use your BIN to report, pay, or get information about your withholding, unemployment insurance, transit taxes, and workers' benefit fund assessment.
- Include your BIN on all correspondence, returns, and payments.
Combined Employer's Registration form
Make sure to fill out this form completely and accurately. Here's information on each area of the form.
Section 1
Business name/assumed business name
- Sole proprietors
- List your personal name under the business name (such as "John M. Smith"), and the name of the business under the assumed business name.
- If you list more than one owner/officer and did the same for the Secretary of State's business registry, you're considered a partnership.
- Include the abbreviations " Inc." if incorporated, "LLC" if a limited liability company, etc.
Section 2
Federal Employer Identification Number (EIN)
- Make sure the federal EIN is correct. If you’re in the process of applying for the EIN write applied for. When you receive your EIN please notify us.
Section 3
Payroll services and forms address
If you use a payroll service:
- Do you want the service to receive forms and billings?
- Did you mail a Tax Information Authorization form (available here)?
- Who is the contact person?
Section 4
Physical address/other locations
- List the physical address where work is performed in Oregon or out of state. This may be your employee's residence if work is being done from home.
- If you have more than one place of business in Oregon, list them on a separate sheet of paper. See the instructions for more information.
- The physical address cannot be a PO BOX.
- If Oregon withholding for an Oregon resident working outside of Oregon, write "Courtesy withholding."
Section 5
Acquiring or transferring a business
- Complete this section if you acquired/transferred all or part of the operations of an ongoing Oregon business.
- List the acquired business name, BIN (if known), previous owner, and phone number.
Section 6
Social Security numbers
- Provide owners'/officers' Social Security numbers so your registration is complete. List officers with direct knowledge of payroll reporting and a contact for more information, if necessary.
- Revenue keeps Social Security numbers confidential, in accordance with Oregon Revised Statutes 314.835 and 314.840.
- Owner/officer signature required.
Section 7
Type of ownership
- Check the box next to the type of business you're registering for payroll taxes.
- Non-profit 501c(3)s must send a copy of your exemption letter with completed registration as proof of exemption from transit taxes.
Section 8
Dates to include on the registration
- Withholding taxes : Date employee(s) were/will first be paid for work in Oregon
- Transit taxes : If employees will be working in a transit district, mark the appropriate box TriMet or Lane, include the date employee(s) first performed services within the district(s)
- Unemployment taxes: Enter the quarter and year that your payroll will first exceed $225 and the date your first Oregon employee was hired/will be hired.
NOTE: Before issuing any Oregon paychecks, an employer is required to register with the State of Oregon by submitting a combined employer's registration form.
Change in status form
- Use this form to update withholding, unemployment, and transit tax information on an existing BIN.
- To report changes in status that affect your workers' compensation insurance and WBF assessment, call the Department of Consumer and Business Services (DCBS) in Salem at (503) 378-2372.
Use the Change in Status form when you:
- No longer have employees.
- Stop working in a transit area.
- Begin working in a transit area.
- To update addresses and phone numbers.
- To update owner/officer information.
Changing your business entity
- If your business entity is changing, complete the Change in Status Report form and/or a new Combined Employer's Registration.
- Some examples of entity 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.
Payment options for Oregon payroll taxes: - Electronic Funds Transfer (EFT)—If you pay your federal taxes electronically, you must pay your Oregon combined payroll taxes the same way. If you don't meet the federal requirements, you can submit them voluntarily.
Complete the debit or credit agreement (called the ACH) to begin using EFT. The form is available here.
For more information on electronic filing, call the Department of Revenue in Salem at (503) 947-2017. - Web pay coupons—Use these to make electronic payments by computer.
- Paper/forms—Mail your check with the Oregon tax coupon (OTC). Complete and attach a payment coupon with every payment.
NOTE: 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.
Options for filing quarterly tax reports (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 in Salem at (503) 947-1544.
To report zero tax using IVR, call the Employment Department in Salem at (503) 378-3981.
To order paper forms, call the Department of Revenue in Salem at (503) 945-8091 or the forms can be ordered on line at the Employment Department's website at www9.emp.state.or.us/tax/forms.cfm.
Oregon tax coupon (OTC) and quarterly reports (OQ)
- Oregon tax coupons (OTC) are mailed out each December or within three weeks after you register your business (unless you're paying with electronic funds transfer EFT).
- OTTER updates are mailed each February to employers who use the system.
- Oregon quarterly reports (OQ) are mailed each February to employers who don't file electronically.
Year-end reconciliation form (form WR)
All employers must file an Oregon Annual Withholding Reconciliation Report (Form WR).
This report 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.
More information on employer payroll taxes
- Go to the Oregon Department of Revenue web site at: www.oregon.gov/DOR/BUS
- E-mail: payroll.help.dor@state.or.us.
- Get up-to-date payroll tax information by e-mail. Register for Payroll Tax News at: http://listsmart.osl.state.or.us/mailman/listinfo/payrolltax-news.
- BIN questions—call the Oregon Department of Revenue in Salem at (503) 945-8091, or 1-800-356-4222 toll-free from an Oregon prefix.
- Unemployment insurance tax questions—call the Oregon Employment Department in Salem at (503) 947-1488.
- WBF assessment questions:
- General questions—call the Department of Consumer and Business Services in Salem at (503) 947-7815.
- Reporting questions—call the Oregon Department of Consumer and Business Services (DCBS) in Salem at (503) 378-2372.
Transit boundary questions
TriMet (Clackamas, Multnomah, and Washington counties), call TriMet in Portland at (503) 962-6466.
Lane (County) Transit, call the Lane Transit District (LTD) in Eugene at (541) 682-6100.
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