Oregon · 2026 employer costs
How much does an employee cost in Oregon?
Oregon withholds state income tax from employee pay, but that's not an employer cost. What actually lands on the employer side is federal Social Security and Medicare plus Oregon's own unemployment insurance rate and wage base. Below is a 2026 estimate for a $60,000 hire, and the full calculator to run your own numbers.
A $60,000 Oregon employee costs about
$65,993
in mandatory employer costs alone — before any optional benefits.
- New-employer SUI: 2.4% on the first $56,700 of wages.
- Other employer-paid state charges: Paid Leave Oregon (employer share) at 0.4% up to $184,500 (25+ employees only).
- Standard FUTA rate applies: 0.6% — this state is not projected to face a federal credit reduction for 2026.
- State income tax is withheld from the employee's wages, not paid directly by the employer.
- This rate was checked directly against the Oregon Employment Department (OED), current as of 2026-09-23.
Oregon's 2.4% new-employer rate applies until you have 12 months of reported payroll. It already includes the Special Payroll Tax Offset (0.135% for 2026), which the state collects through the UI tax to fund programs such as the Wage Security Fund — it isn't charged again.
What you’d pay this person — before taxes or benefits.
Used only for employer-size rules. The estimate below is for one new hire.
Health insurance, 401(k) match, bonus, and more. Off by default.
2026 calculation assumptions▾
Source: SSA / IRS
Source: IRS
Source: IRS / U.S. Dept. of Labor
Oregon's 2.4% new-employer rate applies until you have 12 months of reported payroll. It already includes the Special Payroll Tax Offset (0.135% for 2026), which the state collects through the UI tax to fund programs such as the Wage Security Fund — it isn't charged again.
This estimate assumes your business is a new employer (not yet experience-rated) for unemployment insurance purposes. An established business’s actual SUI rate may be higher or lower depending on its claims history. “Current employees” is used only to check headcount-based thresholds (paid sick leave tiers, the ACA’s 50-employee mark) — it doesn’t change the tax rates themselves.
Reverse the question
Not “what will it cost?” — what can I afford?
Enter what your business can put toward one new hire each month, all-in. We’ll work backward through OR payroll taxes to the highest salary it supports.
Estimated affordable salary
$76,727
per year
Oregon hiring guide
What makes hiring in Oregon different?
Oregon publishes one UI rate for new businesses. The Oregon Employment Department (OED) charges employers with less than 12 months of reported payroll 2.4% for 2026. Oregon stays in Tax Schedule 3 this year, and its 2026 UI tax rates range from 0.9% to 5.4%. Workers don't pay into Oregon's UI trust fund; it's funded by employer payroll taxes.
The rate applies to the first $56,700 of each employee's wages in 2026, up 4.4% from $54,300 in 2025. OED sets that figure from Oregon's annual average wage, so it usually rises every year. The 2.4% rate also covers the Special Payroll Tax Offset, a small slice (0.135% in 2026) that the state collects through UI tax for programs like the Wage Security Fund, so the calculator doesn't add it separately.
Paid Leave Oregon
Oregon has a statewide paid family, medical, and safe leave program. For 2026 the contribution is 1% of each employee's wages, up to $184,500. Employees pay 60% of it. Employers with 25 or more employees on average pay the other 40%, which is 0.4% of wages. Employers with fewer than 25 don't pay the employer portion, but they still have to withhold, report, and pay their employees' 60% share. A small employer that accepts a Paid Leave Oregon assistance grant then pays the employer portion for the next eight quarters.
Employer size here isn't today's headcount. Paid Leave Oregon averages your monthly employee counts from the previous calendar year, including anyone working outside Oregon, and that size stays fixed for the whole year. The calculator can't see that history, so it adds the 0.4% employer contribution (up to $184,500, or $240 a year on a $60,000 salary) once your current employees plus this hire reach 25. If your official size differs, go by Paid Leave Oregon's number.
Oregon Sick Time
All Oregon employees get protected sick time. Employers with 10 or more employees must make it paid; the threshold is 6 if the employer has a location in Portland. Smaller employers must still protect the time but don't have to pay for it. Employees earn at least one hour for every 30 hours worked and can start using it after 90 days on the job. Employers only have to allow 40 hours of use a year. Instead of tracking accrual, an employer can give 40 hours at the start of the year. Employers may limit carryover to 40 hours and total balances to 80.
For a salaried employee, paid sick time is normally already covered by their salary, so the calculator doesn't add it as a separate cost.
Official sources
- Oregon Employment Department — UI tax and Paid Leave Oregon contribution rates hold steady for 2026 (November 18, 2025)
- Oregon Employment Department — Current tax and contribution rates
- Oregon Employment Department — Payroll tax frequently asked questions
- Paid Leave Oregon — Small employers
- Paid Leave Oregon — Employer size instructions (PDF)
- Oregon Bureau of Labor and Industries (BOLI) — Sick time
Last verified: September 23, 2026