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ccgnapa
February 26, 2025
Question

Oregon Paid Family Leave Deduction No Longer Calculating in 2025

  • February 26, 2025
  • 1 reply
  • 0 views

I looked over some paychecks and noticed that Oregon Paid Family Leave for employees stopped calculating in 2025. I looked at the payroll item list and the limit was raised to $176,100.00 and the rate (amount) stayed at 1%. Why is this no longer calculating on my employee's paychecks? All payroll update have been done. Please help. Thank you!

1 reply

MorganB
MorganB
February 26, 2025

Hey there, ccgnapa.

 

Thanks for posting your question here in the Community. I'm happy to provide some info about the Oregon Paid Family Leave Deduction in your QuickBooks Desktop account.

 

You're on the right track. After completing the most recent update, you're ready to move onto the next steps. Here's how to adjust the contribution rate:

 

1. Go to Employees, then Employee Center.
2. Double-click your employee.
3. Select Payroll Info, then click the Taxes button.

4. Go to the Other tab.
5. Click the OR - Paid Fam Med Leave Co. In Co. Portion Rate, enter your business rate (no decimals). Example: 40.
6. Select OR - Paid Fam Med Leave Emp. In Emp. Portion Rate, enter your employee rate (no decimals). Example: 60.
7. Hit OK twice.
8. Repeat steps 2 - 7 for each covered employee.

 

The following article provides additional info about setting up and managing Oregon Paid Family and Medical Leave.

 

Please feel free to drop a comment below if you have any other questions. I'll be here to lend a hand.

C
ccgnapaAuthor
March 5, 2025

Thank you for your reply.

The problem is that this was already set up and calculated correctly last year.

For some reason since 2025 started, it will not calculate any longer.

Is anyone else having this issue in Oregon?

S
Sherrie_F
March 5, 2025

I know exactly why the Oregon Paid Family Leave deduction isn't calculating any longer this year, @ccgnapa. Let me get into this in detail.

 

Sometimes, you can notice $0.00 of your employee's state withholding on their paycheck. This is normal if your employee claims exempt status or doesn't have enough wages to meet the minimum threshold.

 

There are a few things you can check to be sure. Firstly, you must check your employee's state withholding forms. Your employee's state withholding tax calculation will depend on these several factors:

 

  • Number of dependents
  • Other sources of income
  • Marital status
  • How much your employee is paid
  • How often your employee is paid

 

With these, you'll also have to check your employee's tax setup in your payroll product. You can check out Enter Federal Form W-4 in QuickBooks Payroll for more details to get the tax withholding section in your employee's profile.  Ensure the filing status and all other applicable fields match your employee's W-4 or state equivalent forms. 

 

Moreover, if your employee's filing status is set to Exempt or Do not withhold, withholding taxes won't be deducted from their paycheck, regardless of their gross wages. However, if your employee shouldn't be exempt from withholding taxes, you can change their filing status to the appropriate one.

 

Additionally, I'll drop this article you can check out to understand the minimum threshold withholding for your state: Access Oregon local tax agency websites for payroll. 

 

I'm committed to helping ensure your payroll processes run smoothly, @ccgnapa. If you have further inquiries, please don't hesitate to reach out. I'm here and ready to assist you at any time.

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