Oregon’s tax structure is self-balancing and has two major parts. The first part allows for movement between eight tax schedules. When the tax schedule changes, all employers move to that tax schedule. For more information, read our fact sheet.
The second part determines how an employer is assigned a tax rate within a schedule. Individual employer tax rates depend on their ‘experience rating’ or benefit ratio, which essentially measures the rate at which their employees have received UI benefits.
When determining the 2021 tax rates, we use the period July 1, 2017, to June 30, 2020. The period covering the COVID-19 pandemic accounts for only 8% of this time. Most of the benefits paid out in Oregon during this recession are federally funded and are not impacting employers’ experience rating.