Oregon Paid Leave Tax Forms: Form OQ and Form 132

Oregon employers report and pay Paid Leave contributions on two Oregon Paid Leave tax forms: the Oregon Quarterly Tax Report (Form OQ) and the Employee Detail Report (Form 132). Both are filed together each quarter through Frances Online, the state’s payroll tax portal at frances.oregon.gov.¹

What Each Form Covers

Form OQ is Oregon’s consolidated quarterly report. It handles several payroll taxes at once, including state income tax withholding, unemployment insurance, the Statewide Transit Tax, and Paid Leave contributions. There is no separate Paid Leave form. You enter your Paid Leave data in the section of Form OQ set aside for it, alongside the other payroll tax figures for the quarter.¹

Form 132 accompanies Form OQ and lists wage data for each individual worker. Form OQ shows what the business owes in total; Form 132 breaks that down employee by employee, giving the state the subject wages and hours it uses to track individual benefit eligibility.¹

The obligation to file these reports comes from ORS Chapter 657B, which requires employers to submit a combined quarterly report of wages earned and contributions paid on a form prescribed by the Department of Revenue.²

The 2026 Numbers You’ll Enter

The total Paid Leave contribution rate for 2026 is 1% of each employee’s gross wages, capped at $184,500 per employee. That cap matches the Social Security contribution and benefit base for the year.³⁴ The statute caps the rate at 1%, and the Employment Department can adjust it within that ceiling year to year.

How that 1% is split depends on workforce size:

Large employer (25 or more employees): you pay 40% of the 1% rate, or 0.4% of wages, and withhold the remaining 0.6% from each employee’s paycheck.⁵
Small employer (fewer than 25 employees): you don’t owe the employer share, but you still withhold and submit the 0.6% employee share from every paycheck.⁶

A concrete example: a large employer with $1 million in total payroll owes $4,000 as the employer share for the year and withholds $6,000 from employees.⁵ Employee contributions you collect are held in trust for the State of Oregon until they are remitted to the Department of Revenue.²

Which Employees to Include

Coverage generally applies to employees who perform the majority of their work in Oregon. If work isn’t concentrated in any single state but some occurs in Oregon and the employee’s base of operations is here, they’re typically included. Independent contractors are not covered.

Filing Through Frances Online

Frances Online is the primary way to file Form OQ and Form 132. The portal walks you through entering wage totals and contribution amounts, and it runs validation checks that flag common math errors before you finalize the return.⁷

Once you submit, the system returns a confirmation number and a summary of the return. Save both. The confirmation is your proof of timely filing if a question comes up later, and it’s useful when reconciling payroll tax accounts at year-end.

Paper Filing

Paper filing is available but limited. The paper versions of Form OQ and Form 132 cannot be downloaded from the state’s website; they must be ordered directly from the Employment Department.⁷ Completed paper forms go to the Oregon Department of Revenue at PO Box 14800, Salem, OR 97309-0920.⁸

Deadlines and Payment

Reports and payments are due on the last day of the month following each calendar quarter.²

Q1 (January–March): due April 30
Q2 (April–June): due July 31
Q3 (July–September): due October 31
Q4 (October–December): due January 31

If a due date falls on a weekend or holiday, the deadline moves to the next business day.⁷

Payment options include direct debit through Frances Online, Electronic Funds Transfer (EFT) through your bank, or a mailed check with the Oregon Trust Company (OTC) payment voucher, which routes the funds to the correct tax account.⁸

Penalties for Filing Late or Not Paying

Two separate penalty tracks can apply, and they can stack.

Because Form OQ is filed with the Department of Revenue, the DOR’s standard penalties apply first. Missing the filing or payment deadline triggers an initial 5% delinquency penalty on the unpaid amount. If the quarterly report is still unfiled more than one month past the due date, the penalty rises to 20% of the amount owed. Interest accrues on the unpaid balance for as long as it stays outstanding.⁹

On top of that, the Employment Department runs its own annual compliance check under ORS 657B.910. By June 30 each year, it sends a warning letter to any employer with outstanding reports or unpaid contributions. If you haven’t caught up by September 1, the penalty is 1% of your total employee wages from the prior calendar year. On a $2 million payroll, that’s $20,000.¹⁰

The director can waive this penalty for good cause if the employer has since filed and paid. Employers can formally request a waiver by November 10 of the assessment year.¹⁰

Small Employers Still File

Averaging fewer than 25 employees exempts you from the employer share, not from filing. You still withhold and remit the 0.6% employee share every quarter, and you still submit Form OQ and Form 132 on the same schedule as larger businesses.¹¹

One thing to know if you use the small-employer assistance grant program: applying for and receiving a grant obligates you to pay the 40% employer contribution for the next eight quarters, or two years.¹² Weigh the grant against two years of added payroll cost before applying.

Equivalent Plan Holders Still File Form OQ

Employers with an approved equivalent plan don’t send Paid Leave contributions to the state, but the filing obligation doesn’t disappear. You still file Form OQ each quarter to report subject wages.¹³

Records to Keep With Your Filed Forms

Oregon requires payroll records to be kept for at least three years, and time records for at least two years. Because the statute of limitations on wage claims runs longer, holding everything for six years is safer.¹⁴ Store copies of each filed Form OQ and Form 132 with the Frances Online confirmation number for the quarter, so timely filing is easy to prove if the state ever asks.

1
State of Oregon. Tax Forms and Reports
2
Oregon Public Law. Oregon Code 657B.150 – Contributions; Director to Set Rates
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Paid Leave Oregon. Employers – Paid Leave Oregon
4
Social Security Administration. Contribution and Benefit Base
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Paid Leave Oregon. Contributions Calculator – Paid Leave Oregon
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Paid Leave Oregon. Paid Leave Oregon
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Oregon Department of Revenue. Withholding and Payroll Tax
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Oregon Department of Revenue. Oregon Department of Revenue – Mailing Addresses
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Oregon Public Law. Oregon Code 314.400 – Penalty for Failure to File Report or Return or to Pay Tax When Due
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Oregon Public Law. Oregon Code 657B.910 – Penalty When Employer Fails to File Contribution Reports or Pay Contributions When Due
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Paid Leave Oregon. Common Questions About Paid Leave
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Paid Leave Oregon. Small Employers – Paid Leave Oregon
13
Paid Leave Oregon. Equivalent Plans
14
Oregon Bureau of Labor and Industries (BOLI). Access to Employee Records