Earlier this year Oregon passed an increase to the minimum wage, making it $9.75/hour as of July 1, 2016.  An updated state tax rate file with this new rate has just been made available.

You can download the new tax rate file by going to Payroll->Setup->State Tax Rate Tables.  Then click on the Get Updates… button at the bottom left corner of the window.  This will download the new tax rate file with the updated minimum wage rate information.  To install the new rates, click on the Add State… button, check the box next to “Oregon – Updated Rates” and click Ok.

Minimum Wage VerificationiStock_000012147683_Double

If you have piecework wages in a pay period that spans the end of June/beginning of July, the program will use the old minimum wage rate of 9.25 for any work performed up to 6/30.  For work performed on or after July 1, the new rate will be used to verify that the employee made minimum wage.

If you have hourly pay rates of 9.25 entered on employee accounts, you will either need to edit the pay rates or use the Payroll->Utilities->Employee File Utilities option to change pay rates on all accounts from 9.25 to 9.75.

Three Rates

Oregon is phasing in three different rates for different regions of the state.  When we provide updates, we will include the rural minimum wage rate (which is scheduled to increase to $12.50/hour by 2022).  For minimum wage verification purposes, if a different minimum wage rate applies to your company, you will need to manually edit the state tax rate file to reflect the applicable rate.

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