Paycheck Calculator Oregon - OR

(Tax Year 2024: Last Updated on April 18, 2024)

You may determine your net pay or take-home pay by entering your period or annual income together with the pertinent federal, state, and local W4 data into our free Oregon paycheck calculator. Oregon has a progressive state income tax system that has one of the highest top rates in the country, at 9.90%.

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Oregon - OR Paycheck Calculator: Hourly and Salary

Oregon, a coastal state known for its diverse landscape of beaches, mountains, forests, and farms, is located in the Pacific Northwest region on the West Coast of the United States. The state is the ninth-largest in area, 27^th most populous among the 50 states of the U.S.

Portland is the largest city in Oregon, whereas Salem is its capital. Moreover, the state also houses a significant part of The Portland metropolitan area, which also includes the city of Washington, Vancouver to the north.

From delicious food to craft beers, from majestic open spaces to natural wonders, and from a strong economy to plenty of business and job opportunities, the Beaver State retains its position to be one of the top destinations for those looking for a refreshing change of life, career, and scenery.

So whether you are trying to compare different job offers, deduce your employment cost, or mulling over to start a new family in Oregon, this comprehensive guide has it all. Our Travel experts have joined hands with finance experts to bring you a one-of-its-kind guide that covers the following topics:

• Things you must know before moving to Oregon
• Oregon Payroll Facts
• How to Calculate Paycheck in Oregon? – it is to help:
  • Job Seekers to compare numerous job offers in terms of take-home pay, and to choose the best one.
  • Employees to calculate their Take-Home Pay amount for budgeting or ensuring they have received the right amount from their employer.
  • Entrepreneurs to compare several business opportunities in terms of Employment Cost.
  • Employers calculate paycheck for each of their employees using our Oregon Paycheck Calculator.
• Federal and State Payroll Laws to make sure Paycheck complies with the Payroll laws.
• Frequently Asked Questions.

We hope these topics will answer all your queries and help you make informed decisions that you wot regret later. So let's get started.

Things You Must Know Before Moving To Oregon:

Moving from town to town or state to state could be a life-changing decision. Therefore, you must consider every aspect of the place before proceeding. So here are some of the factors regarding Oregon that you must be aware of:

Cost of Living:

Living on Oregon would add extra burden on your budget as compared to most of the other states in the US. Wherefore, it is currently ranked 2nd worst state to make a living. The cost of living here is 113.1 points, which is relatively higher than the national living cost index of 100 points.

Housing is the primary factor that contributes to higher costs overall, followed by transportation. Whereas, grocery, health, utilities, and miscellaneous expenses are almost similar to the rest of the states.

Cost of Housing:

There' are plenty of great housing options in Oregon. However, they are quite expensive to own or rent as compared to the rest of the nation. The median home value in the state is $344,200, which is significantly higher than the national median home value of $231,200.

Apart from buying, you can also rent a house where the cost varies from city to city. The median home rent in Oregon is $1,785. You can get a home for rent for a family of four in Portland metro area $1,350/month, while it is much lower in Eugene, at about $970/month for four persons.

Education:

Oregon is a home for several highly-rated public school districts as well as top colleges and universities, to secure the bright future of your children. It is listed in the top 25 states in education rankings for public education. Some of the prominent educational institutes include Lake Oswego School District (Lake Oswego), West Linn-Wilsonville School District (Tualatin), Oregon Institute of Technology (OIT), and University of Portland.

Weather:

Oregon has many sunny days and relatively low humidity and experiences a lot of rain, for which you can categorize it the states with a decent and mild climate. However, varied geography with Willamette Valley, Cascade Mountains, dense forests, high desert region, & Columbia River and the Pacific Ocean forming the western border create considerable climate differences in Oregon.

Outdoor Activities:

Oregon is a haven for an outdoor enthusiast. From world-class skiing to hiking and from camping to whitewater rafting, the Beaver State offers endless adventure in the top tourist destinations like Crater Lake National Park, Mt. Hood National Forest, the historic Timberline Lodge, Gifford Pinchot National Forest, and The Columbia River Gorge.

Besides, scenic beauties, the state also houses Amusement Parks like Enchanted Forest and Family Fun Center (Willamette Valley), Aquariums & Zoos like Seaside Aquarium, Art Galleries & Studios like Portland Art Museum, Casinos like The Mill Casino, Museums like Seaside Historical Society Museum, Pools & Aquatic Centers like Wings & Waves Waterpark, and so much more.

Business and Job Opportunities:

Oregon has one of the strongest economy & job market. It is ranked on #2 for growth, #11 for employment, #19 for the business environment, and #5 among rest of the states for the overall economy by usnews.com. Moreover, the current unemployment rate in the state is 4.1%, along with the minimum wage rate of $11.25/hour, so whether it's a job or business, you can make a great living doing whatever you want in Oregon.

Some of the fastest-growing job available in the state includes an operations analyst, health claims examiner, industrial mechanic, physical therapist, and web developer. Furthermore, if you are competent enough to land in high paying jobs, you can go for highest-paid positions like OB/GYN, nurse anesthetist, CEO, and dentist.

Moreover, the state also offers tremendous opportunities for entrepreneurs in industries like Architecture and Engineering, Management, Healthcare and Life, Physical, and Social Science.

Pros and Cons:

Here is the quick round-up for all the good and bad about Oregon:

Oregon Payroll Facts:

• Oregonian employees pay Federal Income tax at a rate ranging between 0% and 37%, categorized in seven tax brackets dependent on income level and filing status.
• Both employers and employees of Oregon pay FICA Tax, which consist of:
  • 4% of Social Security tax on each employee's taxable wages up to $137,700 for the 2024 tax year. 6.2% of this tax is funded by the employee, while the employer pays the other half for each employee.
  • 9% of Medicare Tax. Half of this tax is paid by the employee, whereas the employer funds the equal half for each employee.
  • Employees with annual taxable earning greater than $137,700, also pay Additional Medicare surtax of 0.9%.
• Oregon's employers also pay FUTA tax on 6% of each employee's first $7,000 of taxable income.
• Employees of Oregon also pay State Income Tax, which is charged at progressive rates ranging from 5.0% to 9.9%, distributed in four tax brackets, depending on filing status and income level.
• Employees working in Oregon pay a transit tax of 0.01%. Moreover, employers having business in TriMet or Lane have to pay a transit tax at the rates specified here.
• Besides, FUTA Tax, employers also pay State Unemployment Insurance (SUI) tax, which is charged at the rate ranging between 0.7% and 5.4% on the taxable earnings of $42,100 for each employee. However, new employers pay a flat rate of $2.10%. Nevertheless, employers who pay SUI tax on time and in full can avail of a refund on FUTA Tax.
• Both Employers and employees pay Workers' Benefit Fund Assessment, which is charged at 2.8 cents per hour worked, where employers pay 1.4 cents per hour, and the employee pays 1.4 cents per hour.
• The Federal Minimum Wage rate for employees, unless or otherwise exempted, is $7.25/hour, while State Minimum Wage rate is $11.25/hour. Moreover, the Oregon cash minimum wage rate of Tipped employees is also $11.25/hour.
• Employers in the state pay overtime to their non-exempted employees, at the rate of 1 1/2 times regular hourly rate for excess hours worked after 40 hours in a workweek.
• Oregon State doesn't have an income tax reciprocal agreement with any state. Therefore, non-resident workers have to pay taxes in Oregon.
• The livable wage for a single Individual living in Oregon is $13.49, while for a couple (one working) with two children is $29.19, according to Massachusetts Institute of Technology.
• The Entry Level Average Salary in Oregon is $30,626, which equals to the hourly rate of $15.
• Oregon's Median Household income is $59,393, according to United States Census Bureau.

As we are done with relocation to Oregon and its payroll facts, now it's time to calculate paycheck. This paycheck calculation can help you compare different job offers, your take-home pay from your job in Oregon, or your employment cost as an employer.

Step 1 - Calculating Gross Pay:

The very first step to calculating the paycheck amount is to determine Gross Pay. It is a wage that an employee earned in the last pay period.

Gross Pay is calculated differently for both hourly and salary-based employees, which is discussed in detail as follow:

Gross Pay for Hourly Employee

Hourly Employees are paid at a mutually agreed pay rate for each hour they work in a pay period. Usually, Pay periods for Hourly employees are Hourly, Daily, Weekly, and Bi-Weekly. However, the Federal, State, and Local Wage law requires the employers to set the pay rate equals to or more than the defined Minimum Wage Law for the non-exempted employees.

Hourly employees are also entitled to receive overtime, for each excess hour worked after regular hours in a workday or a workweek. Remember, like Minimum wage, the employers are also required to follow Overtime wage law provided by the federal, state, or local authorities.

To calculate gross wage for an hourly employee:

1. Calculate total hours worked in a Pay Period using the data from Timesheet or Timecard.
2. Multiply Total Hours worked with the Hourly Rate (Pay Rate).
3. Add overtime hours (if any) worked by the employee.

Gross Pay for Salaried Employee

Salaried Employees are paid at the flat amount rather than on an hourly basis. The amount is usually mutually agreed as an Annual Salary, which is then paid in Semi-monthly or Monthly Pay periods.

Salaried employees are mostly exempted from overtime law. However, their salaries must be according to Federal and State Minimum Wage law.

To calculate Gross Pay for Salaried Employees:

• Divide the "employee's salary" by "number of pay periods." For example: If the employee's annual salary is $25000 and is paid on a semi-monthly pay period, then the employee's Gross Pay would be: $25000 / 24 = $1042.

Don't forget that Supplemental Wages like Bonuses, commissions, tips, paid leaves, fringe benefits, or other taxable wages earned by the employee must be added into the Gross wages.

Step 2 – Subtracting Pre-Tax Deductions (If Any):

Once you are done with Gross Wages, it's time to subtract any Pre-Tax deductions from the gross wage to get taxable wages as Pre-tax deductions are not taxable for federal payroll taxes.

Pre-tax deductions are offered to the employees as benefits like fringe benefits, HSA plans, etc., to reduce their taxable income, hence, increasing their take-home pay amount. Remember, not all benefits are exempted from taxes, so choose the pre-tax deductions wisely.

Some of the common pre-tax deductible benefits are:

• FSA - Flexible Spending Accounts
• HSA - Health Savings Accounts
• Retirement savings accounts like a traditional 401(k)
• Some of the Fringe Benefits
• health insurance
• accident insurance
• dental and vision insurance
• Commuter Benefits
• Short-Term Disability

Many Taxpayers find it hard to itemize their deductions to calculate taxable wages, for which they go for standard deductions, that varies according to the filing status, as shown in the table below:

Step 3 – Calculate and Subtract Federal Taxes:

Once you have determined the taxable wages, it's time to deduct Federal Income taxes for the Taxable wages.

IRS requires the employers to withhold federal income tax from the employee's paycheck, according to the details provided by the employee on Form W-4. The employee fills this form at the start of the job. The form includes all the necessary information, including income, number of allowances to claim, number of dependents, amount of additional taxes to deduct, and much more.

The employees are required to keep their Form W-4 up to date with all their current information, especially marriage, divorce, or child's birth.

The federal income tax is charged according to the tax brackets in which the taxpayer's income falls. The latest income tax brackets and rates are as follow:

Step 4 – Deduct FICA Taxes:

Besides, Federal Income Tax, the IRS also requires the employer to withhold FICA tax (15.3%) for the employee's paycheck and also requires the employer to pay an equal amount for each employee.

Federal Insurance Contributions Act (FICA) Taxes comprises of two types of taxes which are as follow:

1. Social Security:

A total of 12.4% of social security tax is charged from which 6.2% is withheld from the employee's gross, and the employer pays the matching 6.2%. However, Social Security is only charged on the maximum taxable earnings of $137,700 for 2024.

2. Medicare:

A total of 2.9% of Medicare is charged, from which 1.45% is withheld from the employee's gross, and the employer pays the matching 1.45%. Unlike Social Security, there is no maximum table earning limit for this tax. However, an additional surtax of 0.9% is charged as Additional Medicare Surtax on the employees having income over the specified level along with filing status, which is as follow:

Step 5 – Payment of FUTA Taxes

IRS requires the employer to pay another tax, known as The Federal Unemployment Tax Act (FUTA) Tax. This tax is paid at the rate of 6% on the first $7000 earned by each employee in a year. However, the IRS doesn't require the employees to contribute to it.

The employers who pay State Unemployment Insurance (SUI) tax in full and on time are given relieving FUTA tax credit of up to 5.4%, which saves a whopping 90% from FUTA Tax.

Step 6 – Subtract Post-Tax Deductions (If any):

Post-tax deductions (after-tax deductions) is an amount the employer takes out from the employee's paycheck after taxes. Therefore, it does not affect taxable wages and the amount of tax payable.

Here are some of the types of post-tax deductions that employee may voluntarily choose:

• Charitable contributions
• Disability insurance
• Garnishments
• Specific Retirement Plans like Roth 401(k)
• Life Insurance

Step 7 – Withhold State Payroll Taxes:

As you are done with Federal Payroll Taxes, now it's time to discuss State Payroll Taxes. The very first State Payroll Tax is State Income Tax followed by transit tax charged by Oregon State on employee's paycheck. Another one is State Unemployment Insurance (SUI) tax that is to be paid by the employers only. Moreover, both employer and employee are required to pay the Workers' Benefit Fund Assessment.

Oregon State Income Tax

Like Federal Income tax, Employers are required to withhold State Income tax from the employee's paycheck, at the rates ranging from 5.0% to 9.9%, distributed in four tax brackets depending only on Income Level and filing status.

This tax should be charged according to the details, including the number of allowances to claim, a number of dependents, additional state withholding amounts, etc. provided by the Form OR-W-4. Besides Form W-4, this form must also be updated regularly by the employee, especially on significant events like marriage, child's birth, or divorce.

Statewide Transit Tax

Employees working in Oregon are also required to pay a transit tax of 0.01%, which is withheld by the employer along with other payroll taxes.

State Unemployment Insurance (SUI) Tax and Workers' Benefit Fund Assessment

The State Unemployment Insurance (SUI) Tax is an employer-funded program that provides temporary income to unemployed workers who have lost their job without fault of their own.

The state doesn't charge in Oregon State Disability Insurance (SDI) Tax. However, it does require the employers to pay Oregon State Unemployment Insurance (SUI) tax, at the rate ranging from 0.7% to 5.4% on a first $42,100 earned in wages by each employee in a year. However, new employers are given relief as they only have to pay a flat rate of 2.1%. Additionally, both employees and employers are required to pay 2.80% of Workers' Benefit Fund Assessment, where an employer funds 1.4 cents per hour, and employee funds 1.4 cents per hour.

Step 8 – Withhold Local Payroll Taxes:

All employers, including nonresident employers, who are paying wages earned in the Tri-County Metropolitan Trans-portation District (TriMet) or the Lane County Mass Transit District (LTD), are required to pay Transit district taxes, at the rates provided in the state's official website.

Step 9 – Calculate Pay Check:

Now that you are done with all payroll taxes and calculated the net take-home pay of an employee, it's time to cut the paycheck. Moreover, you, as an employer, must pay your portion of FICA tax along with FUTA and SUI tax in full and on time regularly.

Federal and Oregon Payroll Laws:

• The state law requires the employers to pay their employees at least once every 35 days, on regular paydays designated by the employer.
• The Oregon Minimum Wage law requires employers to pay at least the minimum wage rate of $11.25/hour to their non-exempted employees. Moreover, the Oregon Overtime law also requires the employers to pay overtime to their non-exempted employees at the rate of one and half of regular hourly rate for every hour over forty hours in a workweek. Employees exempted from overtime, and minimum wage law is:
  1. Executives of companies
  2. Administrative employees
  3. Professional Employees
  4. Outside Sales Persons
  5. Computer systems analysts, computer programmers, software engineers, or other similarly skilled workers
  6. Supervisors
  7. Employees employed in forest fire fighting
  8. Employees of any irrigation system district
• Employers in Oregon are not required to provide employees with either paid or unpaid vacation benefits, holiday leaves, Jury Duty leaves, voting leaves. However, employers (with ten or more employees (6 or more in Portland)) are required to provide PAID sick leaves, and employers (with less than ten employees (less than 6 in Portland)) are required to pay UNPAID sick leaves. Moreover, employers (with 25 or more employees) are required to provide PAID bereavement leaves.
• Oregon labor laws require employers to provide UNPAID lunch break for at least 30-minute uninterrupted to their employees (unless or otherwise exempted) working for six or more hours continuously. Moreover, employers are required to provide meal break to their employees (unless or otherwise exempted) based on:
  • 0 to 6 hours of work – 0 meal periods
  • 6 to 14 hours of work – 1 meal period
  • 14 to 22 hours of work – 2 meal periods
  • 22 to 24 hours of work – 3 meal periods

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