Home > workers compensation compliance > OREGON —The Transit Tax State

OREGON —The Transit Tax State

Oregon is a payroll state but has its own particularities. In addition to buying a workers’ compensation policy, there is an add-on tax called WCF or Workers’ Benefit Fund. That tax is added to your payroll dollars. The good news is the taxation is similar to Washington State where sick and vacation hours used are counted, but not counted if paid out in severance. (Don’t get me started on what California does.)

As for unemployment insurance, sick, and bonus pay are not taxed. Nice. But not for long. Policy holders pay less UI tax than self-insured firms. Because of the State payroll tax, there is a Special Payroll Tax that keeps track of the FUTA amount and is deducted from the IRS income tax for employees.

For the folks that live near any city, you get to pay a transit tax. One for the TiMet area and one for the Lane Transit Tax.

If you are in independent contractor working for someone else, someone is going to pay for a workers’ compensation policy. They are rather strict about that. Watch out.

What really grips me is the WCF or Workers’ Benefit Fund. Those working are paying a tax on themselves for others sitting on their backside and collecting unemployment, rehab, or some sort of training. I think the employer should pay for this. Sorry. Doesn’t make sense but it is Oregon.

As for Reciprocity, it is user friendly because of the Vancouver and Longview cities. For the most part, someone working out of State can pay in either if they keep good records.

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