Onboarding a payroll
Four steps, and the local withholding is set up correctly from run one
Registrations checked
Federal, Oregon, unemployment insurance and Paid Leave — plus whichever local authorities your work locations trigger.
Employees mapped to jurisdictions
Withholding follows where the work is performed, not where the office is. This is the step software leaves to you.
A parallel run
We run alongside your existing setup once before switching, so a mistake shows up on a spreadsheet rather than in a paycheque.
Filed on the calendar
Quarterly combined reports, annual returns and the W-2s and 1099s at the January deadline.
What Oregon employers are actually responsible for
| Obligation | Who it applies to | Where it is filed |
|---|---|---|
| Federal withholding, Social Security, Medicare, FUTA | All employers | IRS |
| Oregon income tax withholding | Employers with Oregon-work employees | Oregon DOR, combined payroll report |
| Oregon unemployment insurance | Most employers | Oregon Employment Department |
| Paid Leave Oregon | Employers with Oregon employees | Oregon combined payroll |
| Statewide transit tax | Wages for Oregon-work employees | Oregon combined payroll |
| TriMet / Lane transit payroll tax | Employers operating in the district | Oregon combined payroll |
| Metro SHS withholding | Employees over the threshold in the Metro district | Portland Revenue Division |
| Multnomah PFA withholding | Employees over the threshold in Multnomah County | Portland Revenue Division |
| Workers’ compensation | Nearly all employers | Insurer and Oregon WC Division |
Payroll services
Cross-border payroll
Employers with staff on both sides of the Columbia have a harder job than the payroll software suggests. Washington has no income tax withholding but does have Paid Family and Medical Leave and workers’ compensation obligations of its own. An Oregon employer with a Washington-resident employee working from home in Vancouver may have no Oregon withholding obligation at all for those wages — which is the mirror image of the problem we solve on the cross-border hub.
Do you run payroll or just advise on it?
Both. We process payroll for small businesses and we also fix compliance for businesses running payroll elsewhere who have found something wrong.
We have one employee. Is that worth outsourcing?
Often yes — one employee still triggers nearly every Oregon obligation in the table above. The compliance burden barely scales with headcount.
What happens if we missed local withholding?
It is correctable. Metro SHS and Multnomah PFA employer withholding are the two most commonly missed, and catching it mid-year is far cheaper than at filing.
Can you handle contractors as well as employees?
Yes — see 1099 contractor filing. Classification is the first question and it matters more than the paperwork.
By city
Talk it through before filing season starts
Start with a complimentary 15-minute introductory call about your situation and whether we are a good fit. No tax advice is given on that call.
Written by
Bookkeeper, 25+ years
Katie has kept books for small businesses for more than 25 years — QuickBooks, payroll, AP, AR, reconciliations and monthly reporting.
Reviewed by
Heather Perkins
Enrolled Agent, Oregon Licensed Tax Consultant
Last reviewed
This page is general information about Oregon, Washington and federal tax rules, not advice about your own return. Thresholds and rates change every year. Figures were verified as of August 2026 — check the linked official sources, or talk to us about your situation.