Oregon Unemployment Insurance

The State of Oregon Employment Department governs the unemployment insurance benefit program throughout the state to assist workers who are either completely, or partially, separated from employment.    

Any business that pays a wage of $36,900 to at least a single employee must pay unemployment insurance taxes on that amount. This applies to all of their employees, though any money above that threshold is not taxed.

The purpose of these taxes is to raise unemployment benefits for people who are fired or laid off and who need help. This money is raised by the Oregon Employment Department by setting various tax rates on employers. The tax range ranges from 1.2 to 5.4 percent, with a “new employer” rate of 2.6 percent set for an employee's first year.

The Employment Department will pay unemployment insurance benefits to those who meet eligibility qualifications criteria. Benefits provide supplemental income while you seek full-time reemployment. Unemployment insurance is considered taxable income and must be claimed when you file your state and federal income tax returns for the year.

When you file your initial claim, you will have the opportunity to choose to have taxes (10%) withheld from your weekly benefits. You can change your preference only once during the life of your claim.