How do I set up a pay code for Paid Leave Oregon? (OR)

Pay Codes

Paid Leave Oregon is a new program to provide leave time for individuals and families. These instructions will help you set up a pay code to calculate the 40% paid by employer and the 60% paid by the employer toward the contribution rate, which is 1 percent for 2023.

The Paid Leave Oregon program affects employers with 25 or more employees. Employers with fewer than 25 employees do not need to make contributions. But you will still need to collect and submit your employees' share.

Starting January 1, 2023, employees and and employers will begin paying into the new program. Employees can start applying for benefits on September 3, 2023. To learn more about Paid Leave Oregon and see the latest developments, see paidleave.oregon.gov

What's new?

Form 132 includes the Oregon Paid Leave wages instead of the Oregon Paid Leave tax. (2023.11)

Setting up a pay code for Paid Leave Oregon

1. Open Connect Payroll > Organization > Pay Codes.

2. Click New .

Set up the general pay code properties.

Pay Codes, Pay code tab

Pay code

Enter the pay code number to assign to the Paid Leave Oregon pay code. Example: 78

Sub code

Enter a new sub code to assign to the Paid Leave Oregon pay code. Example: 00

Title

Enter a title for the pay code. Example: Oregon Paid Family Leave

Abbreviated title

Enter the abbreviated title. Connect uses the abbreviated title when there's not enough space to print the complete title on reports, etc. Example, OR PFL

Type

Select Deduction.

State

Select OR.

Identification number

Enter the identification number asssigned to your organization by the State of Oregon.

Calculation order

Enter the calculation order to assign to the pay code. Example: 150

Add on new employee

Select this checkbox to add the pay code when you set up a new employee.

Allow employee options

To allow you to make changes to the pay code at the employee level, select this checkbox. Choosing this option means Connect will use the employee pay code to calculate the employee's payroll check when the employee pay code is different from the pay code in the Pay Codes table.

Allow employer options

Select this checkbox.

Allow payout payments

Do not select this checkbox.

Use as summarization pay code

Do not select this checkbox.

Employee portion of the pay code

You will need to set up the options on the Employee tab and Used for Calculation tab.

First, set up the pay code to calculate 60% of the employee's gross pay code and deduct it.

Pay Codes, Employee tab > Employee tab

Amount/Rate/Percent type

Select Percent of Amount.

Percentage

Enter 0.600-

Maximum limit, Annual limit, Minimum wage limit, Maximum wage limit, Standard pay hours

Enter 0.00

GL account

Enter the GL account for payroll liabilities/state.

GL activity

Optional.

Calculation name

Skip this field.

Employee allocation method

Select Use Transactions.

Position

Skip this field..

Round amounts to nearest dollar, Exlcude hours, Exclude hours for overtime calculation

Do not select the checkbox.

Monthly period numbers

Set up the pay code to calculate the employee portion every pay period for all twelve months.

Allow calculations with these check types

Select the checkbox for Manual, Payout, Supplemental, and Termination. Do not select the Third Party checkbox.

Second, set up the used for calculation list for the employee's portion of the pay code

Click Select Pay Codes . Set up the pay codes list with the same pay codes that you use for the use for calculation list on the Oregon state transit pay code.

Pay Codes, Employee tab > Used for Calculation tab

Employer portion of the pay code

The last step is to set up the employer portion of the pay code to calculate the employer's contribution.

First, set up the employer portion of the pay code to calculate 40% of the employee's gross pay.

Pay Codes, Employer tab > Employer tab

Amount/Rate.Percent type

Select Percent of Amount.

Percentage

Enter 0.400

Maximim limit, Annual limit, Minimum wage limit

Enter 0.00

Employer allocation method

Select Use Transactions.

Debit account

Enter a partial account mask.

Credit account

Enter the GL account for payroll liabilities/state.

Calculation name

Skip this field.

Allow calculations on unpaid employee

Do not select this checkbox.

Monthly period numbers

Set up the pay code to calculate the employer portion every pay period for all twelve months.

Allow calculations with these check types

Select the checkbox for Manual, Payout, Supplemental, and Termination. Do not select the Third Party checkbox.

Second, set up the used for calculation list for the employer's portion of the pay code

Click Select Pay Codes . Set up the pay codes list with the same pay codes that you use for the use for calculation list on the Oregon state transit pay code.

Pay Code, Employer tab > Used for Calculation tab

Add the Paid Leave Oregon pay code to employees

1. Open Connect Payroll > Employees > Add Pay Codes to Employees.

2. Set up the selection criteria to choose the employee numbers.

3. Click the option to add pay codes to all selected employees.

4. In the Pay Codes to Add list, select the Paid Leave Oregon pay code.

5. Click GO (CTRL+G).

202211, 2022Sep28