The Eugene Community Safety Payroll Tax is a quarterly local tax on wages and self-employment income earned for work performed inside Eugene city limits. Employers, employees, and self-employed people each pay a different rate, and returns are due on the last day of the month after each calendar quarter through the city’s MUNIRevs portal.
Who Owes the Tax
If your business has a physical location inside Eugene, you owe the employer portion on wages for work done in the city, your employees owe the employee portion on those wages, and any self-employed person working in the city owes the self-employment portion on their net earnings. Work your employees perform within city boundaries triggers a reporting obligation even if your company is headquartered elsewhere.
One rule catches people off guard. If your company has no physical presence in Eugene but employs a remote worker who happens to live there, neither the business nor that remote employee owes this tax. The city has told out-of-area employers with Eugene-based remote staff not to register or contribute.1City of Eugene. Employer Payroll Tax What matters is the physical-location test, not the employee’s home address.
Employees who split time between locations inside and outside the city need their wages apportioned based on where the work actually happens. The city publishes a Non-Resident Withholding Chart and a Business Location Overview to help employers work through the math.1City of Eugene. Employer Payroll Tax
A common misconception worth clearing up: 501(c)(3) nonprofits are not exempt. Nonprofits owe the employer payroll tax, and their employees owe the employee payroll tax just like workers at for-profit businesses.2City of Eugene. Employee Payroll Tax FAQ Federal tax-exempt status does not carry over to this local tax.
The Three Rates
Employer
Employers pay 0.21% (0.0021) of total subject wages paid for work performed within Eugene during the quarter. Small employers that average two or fewer employees annually get a reduced rate of 0.15% (0.0015) on the first $100,000 in payroll.1City of Eugene. Employer Payroll Tax
Employee
Employees owe 0.44% of gross wages earned within city limits, which the employer withholds from each paycheck. Workers earning Oregon minimum wage or less are exempt from the 0.44% withholding. For July 1, 2025 through June 30, 2026, the standard Oregon minimum wage that applies to Eugene (Lane County) is $15.05 per hour, rising to $15.55 on July 1, 2026.3Oregon Bureau of Labor and Industries. Oregon Minimum Wage Even when every employee earns minimum wage and no employee tax is withheld, the employer still has to file quarterly employee tax returns and pay the employer’s 0.21% share.4City of Eugene. Employee Payroll Tax
Self-Employed
Self-employed individuals pay 0.21% of net earnings from business activities performed in Eugene. Sole proprietors and independent contractors averaging two or fewer employees can claim the reduced 0.15% rate on the first $100,000 of net earnings.1City of Eugene. Employer Payroll Tax
What Doesn’t Count as Subject Wages
The city excludes several categories of pay from the calculation:
- Domestic service in a private home, such as housekeeping or nannying.
- Casual labor that falls outside the employer’s regular trade or business.
- Any wages that are exempt from Oregon withholding under Oregon Revised Statutes Chapter 316.
These exclusions come from how the city defines “wages” for payroll tax purposes.2City of Eugene. Employee Payroll Tax FAQ Federal and state government employers generally do not owe the employer portion for employees performing government work, and those employees are typically not subject to the employee withholding for that service.
Quarterly Filing Deadlines
Returns are due on the last day of the month after each quarter closes:
- First quarter (January–March): April 30
- Second quarter (April–June): July 31
- Third quarter (July–September): October 31
- Fourth quarter (October–December): January 31
When a due date lands on a weekend or legal holiday, the deadline shifts to the next business day.
How to File
Filing happens through MUNIRevs, the city’s online portal. If your business is not already linked to a MUNIRevs account, contact the city at cspayrolltaxhelp@eugene-or.gov or 541-682-5053 to get set up. Once you’re in the portal, select the quarter, enter your wage data, and the system calculates the amount owed, including any penalty and interest if you’re late. Payment goes through the portal by electronic check or credit card.1City of Eugene. Employer Payroll Tax
Paper filing is still available. Download the current year’s return form from the city’s website and mail it with payment to the City of Eugene Finance Division. The city encourages MUNIRevs because it keeps a record of prior filings and reduces calculation errors.5City of Eugene. Community Safety Payroll Tax
What to Have Ready
- Total subject wages: all gross pay for work within city limits during the quarter.
- Employee withholding amounts: the 0.44% held back from each employee earning above the minimum wage threshold.
- Employee count: the number of employees who earned wages during the quarter, including those exempt from withholding.
- Net earnings, if you’re self-employed: your net income from Eugene-based business activities for the quarter.
Fixing a Prior Return
For the current calendar year, you can amend a return directly through MUNIRevs. For older quarters, use the amendment forms in the city’s Document Library.1City of Eugene. Employer Payroll Tax If you’re unsure how to correct a prior filing, call 541-682-5053 or email CSPayrolltaxHELP@eugene-or.gov.
Penalties and Interest
Missing a deadline gets expensive quickly. The city charges a 5% penalty on any tax not paid by the return’s due date. If the return itself is more than 30 days late, an additional 20% late-filing penalty applies. Fail to file for 12 consecutive quarters and the penalty can reach 100% of the tax owed.
Employers who knowingly skip withholding from their employees’ paychecks face a separate penalty of $250 per affected employee, up to $25,000 per tax period. That penalty stacks on top of the others. Interest accrues on any unpaid balance starting the day after the due date and runs until the full amount is paid. MUNIRevs calculates penalties and interest automatically when you file late, so you’ll see the full total before submitting payment.1City of Eugene. Employer Payroll Tax