2025 tax rates are returning to pre-pandemic standard experience rate calculations
2025 UI Tax rates will return to the standard rules in place before the pandemic to use in calculation. We will use your reported wages and benefit charges from the third quarter of 2021 through the second quarter of 2024 to calculate your 2025 tax rate. Read more below.
What is changing this year for Oregon tax rates for employers?
2025 employer tax rates are returning to the standard calculation rules that were in place before the pandemic.
How will they be calculated?
2025 employer tax rates will be calculated based on wages and benefit charges from the third quarter of 2021 through the second quarter of 2024.
Why is this changing?
House Bill 3389 required OED to use an employer's 2020 experience rate to calculate their 2024 tax rate. The legislature passed this bill in 2021 to temporarily hold experience ratings at 2020 rates to support Oregon businesses during the pandemic.
Thanks to the partnership between Oregon businesses and the Legislature, Oregon employers have seen significant savings in their UI taxes since 2021 to counter the impact of the pandemic. Oregon continues to earn interest on the Unemployment Insurance Trust Fund which reduces how much Oregon employers have to pay. (Instead of accruing interest on borrowed money that actually increases how much employers have to pay as some other states are experiencing.)