Setting up OR-FML Tax Type

Owned by Claire Aleman
Last updated: 04 14, 2023 by Dale Parker
2 min read

Issue/Symptom/Question

How do I set up Oregon Paid Family Leave (OR-FML)?

Applies To

PENTA for Windows

Payroll > Setup > Taxes > Payroll Tax Maintenance

Resolution/Fix/Answer

This new tax type will be available with the 2022 EOY Tax Kit.

Oregon Paid Family and Medical Leave is a state mandated tax on employers and employees up to an annual limit. For details please visit Paid Leave Oregon : Home : State of Oregon

In order for PENTA to calculate the tax correctly and not have any errors during payroll processing the OR-FML tax needs to be set up:

  • Navigate to the Payroll Tax Maintenance window and query OR-FML

  • Review the General tab according to the tax regulation - see below:

  • Update the Rates tab

    • State/Province will be OR

    • Earnings limit and rates must be set. You need to look up the limit and rates and set appropriately. PENTA does not maintain the limit and rates. 

  • Update the Accrual and Expense Accounts tab with the appropriate information.

  • Optionally, in the following windows set up taxability rules for Tax Type OR-FML:

    • Direct Burden Rules

    • Master Deductions

    • Master Reimbursements

    • Other Compensation Information

    • Payroll Classes

    • Employee Payroll Information 

For OR-FML reporting use this report:

  • OTHSTTAXEMPEMR (generates Other State Taxes - Emp / Emr report)