The Oregon combined payroll tax report, filed on Form OQ, is the quarterly return that lets employers handle state income tax withholding, unemployment insurance, Paid Leave Oregon, the Workers’ Benefit Fund assessment, the Statewide Transit Tax, and the TriMet or Lane transit district taxes in a single filing. It’s due four times a year: April 30, July 31, October 31, and January 31. Every employer who pays wages for work performed in Oregon has to file it, including for quarters when no wages were paid.
What Form OQ Covers
Seven separate obligations are rolled into one report. The rates change periodically, so confirm them before your first filing each year.
- State income tax withholding. The amount you withhold from each paycheck based on the employee’s W-4 elections and Oregon’s withholding tables.
- Unemployment insurance (UI). For 2026, experience-rated employer rates run from 0.9 percent to 5.4 percent of each employee’s wages up to $56,700. New employers without an experience rating pay 2.4 percent.1State of Oregon. Current Tax and Contribution Rates
- Paid Leave Oregon. The 2026 total contribution rate is 1 percent of gross wages up to $184,500. Employers with 25 or more employees pay 40 percent of that rate and withhold the remaining 60 percent from employees. Smaller employers aren’t required to pay the employer share but still withhold and remit the employee portion.2Paid Leave Oregon. Employers
- Workers’ Benefit Fund (WBF). The 2026 assessment is 1.8 cents per hour worked or partial hour. Employers must pay at least half; the rest can be split with the employee.3Oregon Department of Consumer and Business Services. Workers’ Compensation and Workers’ Benefit Fund Assessment Rates 2026
- Statewide Transit Tax (STT). A 0.1 percent withholding from all employee wages, with no cap.4Oregon Department of Revenue. Statewide Transit Tax
- TriMet transit district tax. Employer-paid at 0.8237 percent on wages earned within the TriMet boundary. Only businesses with employees working in that district owe it.5TriMet. Payroll and Self-Employment Tax Information
- Lane Transit District tax. Employer-paid at 0.80 percent on wages earned within the LTD boundary, structured the same way as TriMet.6Lane Transit District. Payroll and Self-Employment Tax Information
UI taxable wages need a separate calculation because they only include the first $56,700 of each employee’s annual earnings. Once a worker crosses that threshold, their remaining wages for the year are no longer subject to UI.
Quarterly Deadlines
- First quarter (January through March): April 30
- Second quarter (April through June): July 31
- Third quarter (July through September): October 31
- Fourth quarter (October through December): January 31
When a due date falls on a weekend or state holiday, it moves to the next business day.7Oregon Department of Revenue. Withholding and Payroll Tax
How to File and Pay
Frances Online is the state’s primary portal for payroll tax reporting. You upload Form OQ and Form 132 data directly, and the system issues a confirmation number that serves as your receipt.8Paid Leave Oregon. What Employers Need to Do Paper filing is technically still available, but electronic filing has become the default, and Frances Online is where your account lives going forward.7Oregon Department of Revenue. Withholding and Payroll Tax
If you’re required to make federal payroll tax deposits electronically, Oregon requires the same for state payroll taxes. That means Electronic Funds Transfer through ACH Debit or ACH Credit.9Oregon Secretary of State. Oregon Administrative Rule 150-316-0345 – Requirement to Use Electronic Funds Transfer Employers not subject to the EFT mandate can mail a check with Form OR-OTC-V, the combined payroll tax payment voucher. The address for both reports and payments:
Oregon Department of Revenue
PO Box 14800
Salem, OR 97309-092010Oregon Department of Revenue. Mailing Addresses
The payment amount has to match the total on your Form OQ exactly. Small discrepancies generate underpayment notices that take time to clear.
What Goes With Form OQ
Form 132
Form 132 lists every employee individually. For each worker you report name, Social Security number, total hours worked, subject wages, and withholding amounts for state income tax, STT, and Paid Leave Oregon.11State of Oregon. Tax Forms and Reports The column totals on Form 132 have to tie back to the summary figures on Form OQ. When they don’t, expect processing delays or auditor follow-up.
Schedule B
If your federal payroll tax liability exceeded $50,000 during the IRS lookback period, Oregon requires semiweekly deposits of state withholding and Schedule B attached to Form OQ. Schedule B breaks down your withholding deposits by pay period rather than summarizing the full quarter. Most small and mid-size employers won’t hit this threshold, but growing businesses should check annually.
Quarters With No Payroll
As long as your employer account is active, you still file a report for quarters when no wages were paid. Skipping the filing because there was nothing to report is one of the most common mistakes and triggers the same late-filing penalties as any other missed return. You can file a no-payroll report through Frances Online or by calling the Employment Department’s automated phone system at 503-378-3981.7Oregon Department of Revenue. Withholding and Payroll Tax If the business has permanently closed or no longer has employees, contact the department to deactivate the account instead of filing empty reports.
Penalties and Interest
Oregon doesn’t give much grace, and the penalties stack. Miss the due date and the Department of Revenue adds a 5 percent late-payment penalty on unpaid tax.12Oregon Revised Statutes. Oregon Code 314.400 – Penalty for Failure to File Report or Return or to Pay Tax When Due
If the report is still unfiled more than one month after the deadline, a separate 20 percent failure-to-file penalty applies on top of the 5 percent. If the department sends a notice demanding you file within 30 days and you still don’t, it can estimate your taxes and add another 25 percent penalty. The penalties stack but can’t exceed 100 percent of the tax owed.12Oregon Revised Statutes. Oregon Code 314.400 – Penalty for Failure to File Report or Return or to Pay Tax When Due
Interest accrues on delinquent withholding from the last day of the month following the quarter’s end until you pay. Oregon sets the rate annually under ORS 305.220. For 2025 the rate was 9 percent, rising to 13 percent for amounts that remain unpaid more than 60 days after a formal assessment.13Oregon Revised Statutes. Oregon Code 316.197 – Payment to Department by Employer; Interest on Delinquent Payments
Fixing a Report After You’ve Filed
Oregon uses specific amended forms depending on what needs correcting:
- Wage or hours errors: Form 132 Amended Report
- Tax calculation errors: Form OQ/OA Amended Report
- Semiweekly deposit errors: amended Schedule B
- Social Security number corrections: Notice of SSN Change/Correction Form
These apply whether you originally filed electronically or on paper. All are available through the Employment Department’s tax forms page.11State of Oregon. Tax Forms and Reports Filing an amendment quickly matters because underpayments keep accruing interest, and overpayments sit as account credits until the record is corrected.
Recordkeeping
Keep all employment tax records for at least four years after filing the fourth-quarter return for that year.14Internal Revenue Service. Employment Tax Recordkeeping That covers filed forms, payment confirmations, wage records, and amended filings. Store the Frances Online confirmations alongside your Form OQ and Form 132 copies so everything sits in one place if an auditor asks later.