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REMOTE EMPLOYEES

Hiring a remote employee in Oregon

Your company is in another state and one employee lives and works from home in Oregon. Which state's taxes apply, unemployment, paid leave and Oregon's employer rules, each with its official source.

Facts from the official sources listed at the end of this page; the oldest was read from an archived copy dated August 31, 2026. For employers. General information, not legal or tax advice: confirm a rule with the agency before you rely on it.

Oregon at a glance

Income tax
Oregon withholding
Reciprocity
With Arizona
Unemployment
$56,700 wage base, 2.4% new employer
Paid leave
Paid Leave Oregon
New hire report
Within 20 days

Which state's taxes apply

Work state
Oregon taxes wages for work done in Oregon. Withhold Oregon income tax on the employee's wages.Source: Oregon DOR, Oregon Withholding Tax Formulas, effective January 1, 2026 (150-206-436, Rev. 12-31-25, PDF) (opens in a new tab), checked October 5, 2026
Withholding form
Form OR-W-4Source: Oregon DOR, 2026 Form OR-W-4, Oregon Withholding Statement and Exemption Certificate (150-101-402, Rev. 07-28-25, PDF) (opens in a new tab), checked October 5, 2026
Reciprocity
If your office is in Arizona: Oregon residents working there are withheld for Oregon, with Form WEC.Source: Arizona Department of Revenue, 2026 Form WEC Employee Withholding Exemption Certificate instructions (PDF) (opens in a new tab), checked October 5, 2026
Convenience rules
If your company is in Delaware, New York or Pennsylvania, the employee is assigned to an office there and works there on some days, that state taxes the days worked from home in Oregon for the employee's convenience.Source: Delaware Division of Revenue, 2025 Form PIT-NON Instructions, Non-Resident Individual Income Tax Return (PDF) (opens in a new tab), checked October 6, 2026; NYS DTF, TSB-M-06(5)I, New York Tax Treatment of Nonresidents and Part-Year Residents: Application of the Convenience of the Employer Test to Telecommuters and Others (May 15, 2006, PDF) (opens in a new tab), checked October 6, 2026; PA Department of Revenue, PA Personal Income Tax Guide, Gross Compensation (opens in a new tab), checked October 6, 2026
Office days in your company's state
That state's day limit, if it has one, decides whether it withholds on those days: see its page, or the helper below.
An employee from another state working in Oregon
Oregon sets no day count before a nonresident's wages for work there are withheld.Source: Oregon DOR, 2026 Combined Payroll Tax Report Instruction Booklet (150-211-155-2, PDF) (opens in a new tab), checked October 6, 2026

Where to withhold: two states

Pick your company's state, the state where the employee lives and works from home, and the days a year the employee works at your office. The answer reads each state's rules from the data on these pages.

Your company is in
Employee lives and works from home in
Days a year at your office
Assigned to an employer office in New YorkMatters only in the states with a convenience rule (Connecticut, Delaware, New Jersey, New York and Pennsylvania), and only with office days there.

Income tax withholding

  • Oregon: all wages.

No New York withholding: the employee does no work in New York.

Unemployment

Oregon: the employee works from home there, so the work is localized in Oregon.

Simplified: resident credits, dollar tests, local taxes and a move during the year are not worked out here. Each state's rule and its source are on its page.

Unemployment

The employee works from home in Oregon, so the work is localized in Oregon: pay Oregon unemployment tax, not your company state's.

Agency
Oregon Employment Department (OED), Contributions and Recovery DivisionSource: OED, File/Pay/Amend Payroll Taxes, Contributions (opens in a new tab), checked October 5, 2026
Wage base
$56,700 IndexedSource: OED, Current Tax and Contribution Rates (opens in a new tab), checked October 5, 2026
New employer rate
2.4% 2.4%, the Tax Schedule 3 base rate, until the employer qualifies for an experience rate Surcharges includedSource: OED, Current Tax and Contribution Rates (opens in a new tab), checked October 5, 2026

Open the account: Oregon payroll tax registration

Paid Leave Oregon (opens in a new tab)

Status
ContributingSource: Paid Leave Oregon, Employers Overview (opens in a new tab), checked October 5, 2026
Total rate
1%Source: Paid Leave Oregon, Employers Overview (opens in a new tab), checked October 5, 2026
Employee share
0.6%Source: Paid Leave Oregon, Employers Overview (opens in a new tab), checked October 5, 2026
Employer share
0.4%Source: Paid Leave Oregon, Employers Overview (opens in a new tab), checked October 5, 2026
Small employers
24 or fewer employees, counted in all states: no employer share Counted as the average of monthly employee counts in the previous calendar yearSource: Paid Leave Oregon, Employers Overview (opens in a new tab), checked October 5, 2026

Register before the first payroll: the steps are on Oregon payroll tax registration.

Oregon employer rules

Employment law applies where the employee works, so these follow the employee into Oregon.

Final pay
Fired: By the end of the first business day after discharge (also when employment ends by mutual agreement) Quit: Immediately with at least 48 hours' notice (excluding weekends and holidays); otherwise within 5 business days or by the next regular payday, whichever is firstSource: ORS 652.140, Payment of wages on termination of employment (2025 edition) (opens in a new tab), read from an archived copy dated August 31, 2026 (opens in a new tab)
Pay frequency
A regular payday no more than 35 days after work starts or after the last regular payday; more frequent paydays are allowed.Source: ORS 652.120, Establishing regular payday; pay intervals (2025 edition) (opens in a new tab), read from an archived copy dated August 31, 2026 (opens in a new tab)
Pay notice
No Oregon law requires a written pay-rate or payday notice at hire. Retail, hospitality and food-service employers with 500 or more employees worldwide must give each new hire a written good-faith estimate of their work schedule (ORS 653.428).Source: ORS chapter 652, Hours; Wages; Wage Claims; Records (2025 edition) (opens in a new tab), checked October 5, 2026
New hire reporting
Within 20 days of the date of hire.Source: Oregon DOJ Child Support Program, Report New Hires (opens in a new tab), checked October 5, 2026
E-Verify
No state E-Verify mandate for private employers or public contractorsSource: ORS chapter 652, Hours; Wages; Wage Claims; Records (2025 edition) (opens in a new tab), checked October 5, 2026
Sick leave
Paid sick leave required, from 10 employees, counted in Oregon. 6 or more if the employer maintains any office, store, restaurant or establishment in a city of over 500,000 (Portland).Source: ORS 653.601 to 653.661, Sick time (2025 edition) (opens in a new tab), checked October 5, 2026

When the employee moves

Re-check the work state and the registrations before the next payroll: a move changes which state's withholding, unemployment, paid leave and employer rules apply.

Registering your business in Oregon, and whether one remote employee creates tax nexus for your company, are separate questions this page does not cover.

More on Oregon

WORKLIO HCM

Payroll for employees who work from home in another state

Worklio HCM withholds by home and work state, reciprocity included, and handles city and county taxes. We help open state withholding and unemployment accounts when you hire somewhere new, and our registration service can register your employer tax accounts for you. Taxes are calculated, deposited and filed in every state and locality, and when an agency notice arrives, you upload it and our tax team resolves it. State paid leave contributions are withheld, too.

Remote employees in other states

Sources

The agency page or document behind each fact, as checked.

General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes and for each state's rules.

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