Oregon SB 143 Change Notification
This measure revises Oregon’s unemployment insurance tax system by increasing the portion of employer tax rates used each calendar quarter to fund the Supplemental Employment Department Administration Fund. The rate used to determine these contributions is raised from 0.109% to 0.135% of taxable wages. In addition, in the first quarter of each odd-numbered year, 0.03% of employer wages will be allocated to the Wage Security Fund, with any unpaid funds by June 30 redirected to the Unemployment Compensation Trust Fund.
The measure also amends the method for calculating excess funds in the Supplemental Employment Department Administration Fund that are transferred to the Unemployment Compensation Trust Fund. Instead of using a fixed threshold based on a prior year’s first-quarter collections, the new threshold is defined as one-eighth of the department’s total legislatively approved budget (excluding certain programs). Excess funds above this level must be transferred by December 31 of each odd-numbered year.
The changes apply to calendar quarters beginning on or after April 1, 2025, and to transfers made for biennia ending on or after June 30, 2025. The measure takes effect on the 91st day after adjournment since die of the 2025 legislative session.
Effective Date
April 1, 2025
Oregon Senate Bill 143 Implication to Stakeholders
Employers’ tax liability will increase slightly as a result of this change. The additional increase will not be used in the calculation of the annual unemployment tax rate but will instead be funneled to the Supplemental Employment Department Administration Fund. Therefore, it will not have an impact on the annual unemployment tax rate.
Recommended Action
Being aware of this change is important so the employer does not underpay its taxes moving forward.
