Setting up Oregon Paid Family Leave (ORPFL)

• Beginning on January 1, 2023, businesses in Oregon are subject to Paid Leave Oregon. If a business or organization has 25 or more employees, it’s required to contribute to Paid Leave.
• For businesses with fewer than 25 employees, employees aren’t obligated to contribute. Employees still pay their portion and the business still needs to collect and submit their payments. 
• The contribution rate for 2023 is 1% of each employee’s wages, up to a maximum of $132,900 for the year. Employees pay 60% of the contribution rate and employers pay 40% of the contribution rate.
• Employers may choose to cover all or part of the employees' contribution, but employers may not withhold more than 0.6% of the total rate (1%) from an employee's gross wages.
  
  

There are 3 possible scenarios:

Scenario 1 - Employer with more than 25 employees

Both employer and employee must contribute. Employees pay 60% of the contribution rate and employers pay 40% of the contribution rate. The contribution rate is 1% of the employee's wages up to the maximum amount ($132,900 for 2023).

1. Create the Paid Family Leave payroll field in employee defaults by clicking maintain, default information, employees.
2. On the Employee Fields tab on the first blank line enter PFL_EE in the Field Name column, select a GL account and check the Calc box.
3. Select the ORPFL EE formula from the formula drop-down box, be sure to click the adjust button to the right of the PFL EE line and ensure that Gross is checked in the Use column on the Employee Field Names table. Click OK to close the adjust window.
4. Create the Paid Family Leave payroll field for the employer by clicking the Company Fields tab in the employee defaults window.
5. Scroll to the first blank line and enter PFL_ER in the Field Name column, select GL accounts for both liability and expense and check the Calc box.
6. Select the ORPFL ER formula from the formula drop-down box, be sure to click the adjust button to the right of the PFL ER line and ensure that Gross is checked in the Use column on the Employee Field Names table. Click OK to close the adjust window.

Scenario 2 - Employer with fewer than 25 employees

Only the employee must contribute. Employees pay 60% of the contribution rate and employers pay 0 (zero), up to the maximum amount.

1. Create the Paid Family Leave payroll field in employee defaults by clicking maintain, default information, employees.
2. On the Employee Fields tab on the first blank line enter PFL_EE in the Field Name column, select a GL account and check the Calc box.
3. Select the ORPFL EE formula from the formula drop-down box, be sure to click the adjust button to the right of the PFL EE line and ensure that Gross is checked in the Use column on the Employee Field Names table. Click OK to close the adjust window.

Scenario 3 - Employer with fewer than 25 employees

Employer opts to assist employee contributions. Employees pay up to 60%, employers can elect to pay any percentage up to the full 1% of the maximum amount.

This scenario will use the Special 1 (employee) and Special 2 (employer) fields to determine the percentage contributions up to the maximum 1%

1. Follow the instructions listed in Scenario 1 to set up the employee and employer fields in employee defaults.
2. Click Maintain, Employees & Sales Reps to access the employee record. Click the Withholding Info tab.
3. Go to the Withholding Info tab. Enter the percentage the employee contributes (up to 0.60) in the Special 1 field under Addl Withholding. Enter the percentage the employer will contribute (up to 1) in the special 2 field. The total of Special 1 and Special 2 can’t exceed 1.