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Payroll Tax Alert to all Small Businesses

HB 2575 narrowly passed the Oregon House of Representatives which would raise a $35 million tax on Oregon business to pay for a particular family leave insurance fund.   It is a one cent/hour tax on all employees in Oregon.  This would effect over one million Oregonians who work.   Oregon businesses would collect and pay the tax and a new government entity would be created to administer it through the Bureau of Labor and Industries.

It is still unknown why the legislation was not officially listed as a tax increase by Legislative Council, even though it raises $35 million in new taxes.