Oregon employer payroll tax calculator 2026
Hiring in Oregon? New Oregon employers pay 2.4% state unemployment tax on the first $56,700 of each employee's wages, on top of the federal 6.2% Social Security, 1.45% Medicare and FUTA. For a $60,000 employee that's about $5,993 a year in employer payroll taxes — $1,360.80 of it to Oregon.
| Wages | $60,000.00 |
| Employer Social Security | $3,720.00 |
| Employer Medicare | $870.00 |
| FUTA (0.6% on $7,000.00) | $42.00 |
| State unemployment insurance (SUI) (2.4% on $56,700.00) | $1,360.80 |
| Employer payroll taxes | $5,992.80 |
| Total cost before benefits | $65,992.80 |
Per two-week payroll: $2,538.18. Add health insurance, retirement and workers' compensation in the cost of an employee calculator.
Oregon unemployment tax (SUTA) for new employers
New employers pay 2.4% in 2026 (tax schedule 3).
After a few years the state assigns your own rate based on your layoff history; enter it in the calculator once you have it. Your rate also earns the usual federal FUTA credit: pay Oregon on time and FUTA is 0.6% on the first $7,000. If Oregon ends up a credit-reduction state for the year (the Department of Labor lists them each November), FUTA is higher.
Other Oregon payroll programs
- Paid Leave Oregon, employer share: The contribution is 1% of wages: employees pay 0.6% and employers with 25+ employees pay 0.4%. Smaller employers still withhold the employee share.
- Workers' Benefit Fund: 1.8 cents per hour worked in 2026, at least half paid by the employer.
- The statewide transit tax (0.1%) is withheld from employees' pay.
What an employee costs in Oregon
| Salary | Federal employer taxes | Oregon employer taxes | Total cost | Taxes as % of pay |
|---|---|---|---|---|
| $40,000 | $3,102.00 | $960.00 | $44,062.00 | 10.2% |
| $60,000 | $4,632.00 | $1,360.80 | $65,992.80 | 10.0% |
| $100,000 | $7,692.00 | $1,360.80 | $109,052.80 | 9.1% |
A year, before benefits. New-employer rates, 5 employees, full FUTA credit.
How much does a $40,000 employee cost in Oregon?
About $44,062 a year: the $40,000 salary plus $3,102.00 of federal employer taxes and $960.00 of Oregon employer taxes, before benefits. That's $1,694.69 per two-week payroll.
How much does a $60,000 employee cost in Oregon?
About $65,993 a year: the $60,000 salary plus $4,632.00 of federal employer taxes and $1,360.80 of Oregon employer taxes, before benefits. That's $2,538.18 per two-week payroll.
How much does a $100,000 employee cost in Oregon?
About $109,053 a year: the $100,000 salary plus $7,692.00 of federal employer taxes and $1,360.80 of Oregon employer taxes, before benefits. That's $4,194.34 per two-week payroll.
Both halves of one paycheck
On a $60,000 salary paid every two weeks, the employee sees $14,008 a year taken out of pay — federal income tax, their own Social Security and Medicare and Oregon taxes — and takes home $45,992 (single filer, standard W-4). That money is withheld from their wages, not an extra cost to you. On top of the salary, you pay $5,992.80 of employer taxes. See the employee's side line by line in the Oregon paycheck calculator.
More employer tools
Cost of an employee (benefits and cost per hour) · Employer payroll tax calculator (all states) · Employer payroll taxes guide
Oregon figures checked 2026-09-28 against the state's own publications. Planning estimate, not a payroll return: your rate notice and the state's rules decide the final amount.
Sources
- Oregon Employment Department — Current tax and contribution rates — UI taxable wage base for 2026 is $56,700; new employer rate 2.4% (checked 2026-09-28)
- Paid Leave Oregon — What employers need to do — 1% for 2026: employees 60%, employers with 25+ employees 40%; up to $184,500
- IRS Publication 15 (2026), Employer's Tax Guide — 2026 employer Social Security and Medicare rates and wage limits; FUTA
- IRS — FUTA credit reduction — 6.0% FUTA on the first $7,000; usual 5.4% credit; credit-reduction states lose part of the credit
- U.S. Department of Labor — FUTA credit reductions — the list of credit-reduction states for each year (checked 2026-09-28)
Questions
What is the Oregon SUTA rate for new employers?
2.4% in 2026, on the first $56,700 of each employee's wages. New employers pay 2.4% in 2026 (tax schedule 3).
What is the Oregon unemployment tax wage base for 2026?
$56,700 per employee per year.
How much does it cost to employ someone for $60,000 in Oregon?
About $65,993 a year before benefits: $4,632.00 of federal employer taxes and $1,360.80 for Oregon, at the new-employer rate with 5 employees.