No. Individual employer tax rates depend on an employer’s ‘experience rating’ or benefit ratio. The benefit ratio is determined by dividing the UI benefits charged to the employer by the employer’s taxable payroll. Employers whose workers receive a higher percentage of UI benefits compared to the employer’s UI taxable payroll may have a higher tax rate.
We use this statutory formula, required by Oregon law, to determine employer payroll tax rates for the upcoming year. Federal law requires all states to have at least some employers pay at least 5.4% in UI taxes each year. Oregon has only a small percentage of employers that pay that much and Oregon employers never pay more than 5.4%. In 40 other states, employers can pay more than 5.4% with one state having a maximum rate of 18.55%.