Oregon · 2026 and 2027
Oregon employer payroll taxes and employee cost: 2.4% SUTA on $56,700
In Oregon, a $50,000 employee costs a new employer about $63,238 a year in 2026: 26.5% on top of pay for payroll taxes, unemployment insurance, state leave premiums, workers' comp and health coverage. Change any input to see your own number.
Calculate the cost of an employee in Oregon
Estimates for planning, not tax or legal advice. Rates change and some depend on your business; confirm yours with your state agencies, insurer or payroll provider.
What a Oregon employer pays on top of pay
Every line of the calculator, explained, with the official source of each number.
- Social Security and Medicare
7.65% of pay
The employer matches the employee: 6.2% Social Security on pay up to $184,500 in 2026 ($192,300 in 2027) and 1.45% Medicare on all pay.
per Social Security Administration, as of Jan 1, 2026
- Federal unemployment tax (FUTA)
$42 per employee
6% of the first $7,000 of each employee's pay, less the 5.4% credit for paying Oregon unemployment tax on time.
per Internal Revenue Service, as of Jan 1, 2026
- Oregon unemployment insurance (SUTA)
2.4% of $56,700
New employers pay 2.4% on the first $56,700 of each employee's pay in 2026. After two to three years the rate follows your own claims history.
per Oregon Employment Department, as of Jan 1, 2026
- Paid Leave Oregon (employer share)
0.4% from 25+ employees
Employers with 25 or more employees pay 40% of the 1% contribution, on wages up to $184,500 in 2026; smaller employers pay no employer share.
per Paid Leave Oregon (Oregon Employment Department), as of Jan 1, 2026
- Paid sick leave
40 hours a year
One hour per 30 hours worked, up to 40 hours a year; paid with 10 or more employees in Oregon (6 or more with a Portland location). The hours are paid but not worked, so they raise the cost per hour worked.
per Oregon Bureau of Labor and Industries, as of Jan 1, 2026
- Workers' compensation
$0.89 per $100 of payroll
Index rate for a standard mix of job classes: rank 38 of 51 (1 = highest) and 82% of the national median in the 2024 study. Your premium depends on your job classes and claims history.
per Oregon Department of Consumer and Business Services, as of Jan 1, 2024
- Health insurance (employer share)
$7,726 single / $17,808 family
Average employer contribution per enrolled employee a year at Oregon private-sector employers that offer coverage, 2025 survey.
per Agency for Healthcare Research and Quality (MEPS-IC), as of Jan 1, 2025
- Minimum wage
$15.55 in 2026
Oregon's rate since Jul 1, 2026. Standard rate shown; Portland metro $16.80, non-urban counties $14.55. Adjusted each July 1.
per Oregon Bureau of Labor and Industries, as of Jul 1, 2026
Checked against each source on Oct 23, 2026.
Two worked examples in Oregon
Both for a new employer with 10 employees in a general industry in 2026, with single health coverage at the state average.
Salaried employee at $50,000
A $50,000 salary, 40 hours a week.
| Pay for hours worked2,040 hours | $49,038 |
|---|---|
| Paid sick leave required by law40 hours | $962 |
| Social Security (employer share)6.2% of $50,000 | $3,100 |
| Medicare (employer share)1.45% of $50,000 | $725 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)2.4% of $50,000 | $1,200 |
| Workers' compensation (state index rate)$0.89 per $100 of payroll | $445 |
| Health insurance (single coverage, state average)average employer contribution | $7,726 |
| Total cost a year | $63,238 |
26.5% on top of pay · $31 per hour worked
Hourly employee at $18 an hour
$18 an hour for 40 hours a week, 52 weeks.
| Pay for hours worked2,040 hours | $36,720 |
|---|---|
| Paid sick leave required by law40 hours | $720 |
| Social Security (employer share)6.2% of $37,440 | $2,321 |
| Medicare (employer share)1.45% of $37,440 | $543 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)2.4% of $37,440 | $899 |
| Workers' compensation (state index rate)$0.89 per $100 of payroll | $333 |
| Health insurance (single coverage, state average)average employer contribution | $7,726 |
| Total cost a year | $49,304 |
31.7% on top of pay · $24.17 per hour worked
What changes for Oregon employers in 2027
- The Social Security wage base rises from $184,500 to $192,300: up to $484 more employer tax for employees paid above it. per Social Security Administration, as of Jan 1, 2027
Only changes already official on Oct 23, 2026. Most states publish next year's unemployment insurance rates in November and December; this page is updated when they do.
Frequently asked questions
How much does it cost to hire an employee in Oregon?
About $63,238 a year in 2026 for a $50,000 employee of a new Oregon employer with 10 staff: $13,238 above pay, of which $7,726 is health coverage, $445 workers' comp and $1,200 Oregon unemployment tax. At $18 an hour full time: $49,304.
What payroll taxes do employers pay in Oregon?
Oregon new employers pay $5,067 yearly on a $50,000 salary, $1,200 of it state unemployment tax.
What is the Oregon SUTA rate for new employers in 2026?
2.4% on the first $56,700 of each employee's pay: up to $1,361 per employee a year.
What is the minimum wage in Oregon in 2027?
$15.55 an hour in 2026; Oregon had not published its 2027 rate by Oct 23, 2026.
Is paid sick leave required in Oregon?
Yes. One hour per 30 hours worked, up to 40 hours a year; paid with 10 or more employees in Oregon (6 or more with a Portland location). That is 40 paid hours a year for a full-time Oregon employee at 100 employees.
How much does workers' comp cost in Oregon?
$0.89 per $100 of payroll at Oregon's index rate (rank 38 of 51, 82% of the median): about $445 on $50,000 of pay.
How much do Oregon employers pay for health insurance?
$7,726 a year per employee with single coverage and $17,808 with family coverage, the average Oregon private-employer share of $9,225 and $27,182 premiums in 2025.
Does Oregon have a paid family leave or disability tax for employers?
Employers with 25 or more employees pay 40% of the 1% contribution, on wages up to $184,500 in 2026; smaller employers pay no employer share.
More employer cost pages
Cities in Oregon with their own rules
States with a similar employer cost
Data and rules for every state
Software and services for these costs
- Payroll Software
Calculates and files these payroll taxes for every state you hire in.
- PEO Services
Takes on payroll taxes, workers' comp and benefits, often at group rates.
- Benefits Administration
Runs the health plan and leave programs behind the benefits lines.
Benefits and workers’ comp are most of this cost
A PEO pools employers for health insurance and workers’ comp, often at group rates. Compare PEOs we research, with verified prices and features.