New Oregon employers must: (1) obtain a federal EIN from the IRS, (2) register for a state withholding account with the Oregon Department of Revenue, (3) register for an SUI account with the Oregon Employment Department (this same account covers Paid Leave Oregon), and (4) arrange workers' compensation coverage, typically through SAIF Corporation or a private carrier. Complete all registrations before running your first payroll.
Last reviewed: July 2026
Table of Contents
When you hire your first employee in Oregon, you trigger a series of registration requirements at the federal and state level. Missing any of these steps can result in penalties, delayed payroll, and compliance headaches. This walkthrough covers everything, in order, with the real agency links you need.
Registration Overview
Here's a checklist of what every new Oregon employer needs:
- ☑ Federal Employer Identification Number (EIN)
- ☑ Oregon state withholding registration (Oregon Department of Revenue)
- ☑ Oregon SUI account (Oregon Employment Department)
- ☑ Workers' compensation insurance
- ☑ New hire reporting setup
- ☑ Payroll system or software
Step 1: Get Your Federal EIN
Your Employer Identification Number (EIN) is your federal tax ID. You need it for everything — federal tax filings, state registrations, opening a business bank account, and running payroll.
Apply online at IRS.gov/EIN. It's free and you receive your EIN immediately.
Step 2: Register with Oregon Department of Revenue
Visit the Oregon Department of Revenue website to register for a state withholding account. This allows you to withhold Oregon state income tax from employee paychecks and remit it to the state using Form OR-W-4 elections from each employee. Most Oregon employers also withhold the statewide transit tax (a flat 0.1% of wages) through this same account.
From the Payroll Desk
Don't wait until your first payroll to register. State registrations can take days to process. Start as soon as you know you'll be hiring.
Step 3: Register for SUI
Register for a State Unemployment Insurance account through the Oregon Employment Department. You'll be assigned:
- An employer account number
- Your initial SUI rate (2.4% for new employers in 2026)
- Quarterly filing requirements, combined with Paid Leave Oregon reporting
SUI is an employer-paid tax on the first $56,700 of each employee's wages in 2026. See our Oregon SUI Rates 2026 guide for details.
Step 4: Workers’ Compensation Insurance
Oregon requires workers' compensation coverage starting with your first subject worker — there's no employee-count threshold to clear first. Only narrow categories are exempt, including certain sole proprietors and some domestic workers, so confirm your specific situation with the Oregon Workers' Compensation Division rather than assuming an exemption applies.
Coverage comes from two places: SAIF Corporation, Oregon's not-for-profit workers' comp insurer, or a private carrier. Get quotes from a couple of options and match the policy to your industry classification, since rates vary significantly by the type of work your employees do.
Step 5: New Hire Reporting
Oregon law requires employers to report every new hire and rehire to the Oregon Child Support Program within 20 days of the hire date. This information helps the state enforce child support orders and catch unemployment fraud.
The fastest method is the Oregon Employer Services Portal, which accepts reports online. You can also mail or fax the paper reporting form if you prefer. See our New Hire Reporting guide for the federal side of this requirement.
Step 6: Set Up Payroll
With registrations complete, run a couple of test paychecks before the real thing. Check that state withholding, SUI, Paid Leave Oregon, and the transit tax all calculate correctly, and confirm net pay matches what your payroll software produces using the paycheck calculator. If an employee's OR-W-4 elections look off, send them to our W-4 helper before the first payroll goes out rather than correcting it after the fact.
Frequently Asked Questions
How do I register as a new employer in Oregon?
Get a federal EIN from the IRS, register for a state withholding account with the Oregon Department of Revenue, and register for an SUI account with the Oregon Employment Department. Most Oregon employers also need workers' compensation coverage before the first paycheck goes out.
When must I register as an employer in Oregon?
Register before your first payroll. Oregon accounts can take days to process, so start as soon as you have a hire date, not the week you plan to pay them.
Do I need workers' compensation in Oregon?
Almost certainly yes. Oregon requires workers' compensation coverage starting with your very first subject worker, with only narrow exemptions such as certain sole proprietors and some domestic workers. Coverage is available through SAIF Corporation or a private carrier.
What is an EIN and how do I get one?
An Employer Identification Number (EIN) is a federal tax ID issued by the IRS. Apply online at IRS.gov and you'll receive the number immediately at no cost.
Where do I report new hires in Oregon?
Report every new hire and rehire to the Oregon Child Support Program within 20 days of the hire date, using the Oregon Employer Services Portal or the paper reporting form.
Simplify Oregon Payroll
Gusto calculates, withholds, and deposits your federal and Oregon payroll taxes, including Paid Leave Oregon and the statewide transit tax, then files the quarterly and annual returns for you.
Legal & Tax Disclaimer
This article is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently. The information on this page reflects our understanding as of July 2026 and may not reflect recent changes in federal or Oregon state law.
Do not act or refrain from acting based solely on the information in this article. Always consult a qualified attorney, CPA, or HR professional familiar with Oregon law before making payroll or compliance decisions for your business.