How do I register as a household employer in Oregon?

Start with a federal EIN, then register with Oregon for each account that applies to you. Apply for a federal EIN at IRS.gov. It is free and takes about 15 minutes. Register with Oregon's unemployment insurance agency once you cross $1,000 in any calendar quarter. Most states want this within 20 days of becoming a covered employer. If you will withhold Oregon income tax at your nanny's request, register separately with the state revenue department for a withholding account. Register for Oregon Paid Leave, usually a separate account from unemployment insurance.

What payroll taxes does Oregon charge for a household employee?

Federal FICA and FUTA, Oregon SUTA, and anything else below that applies to you. Federal FICA: 7.65% employer share, matched by your nanny. Federal FUTA: 6.0% on the first $7,000, an effective 0.6% after the state SUTA credit. Oregon SUTA: 0.7% - 5.4% on a state-specific wage base, with a separate rate for new employers. State income tax withholding is optional unless your nanny elects it on the state W-4. Plus Oregon Paid Leave contributions, usually a small percentage of wages and mostly employee-funded.

What are Oregon's minimum wage and overtime rules for nannies?

At least $7.25 an hour for a nanny in Oregon. Oregon has its own minimum wage of $15.55/hour, but it does not cover nannies, so the federal floor governs instead. A regular housekeeper is covered by Oregon's minimum wage: $16.80/hour in the Portland metro area, $15.55/hour in most of the state and $14.55/hour in non-urban counties. Some cities and counties may set a higher floor, so check your locality before you set a rate. Overtime is 1.5x pay for hours over 40 in a week, under the FLSA. Live-in nannies are exempt from FLSA overtime, but not from minimum wage. Source: ORS 653.020(13).

Can I require my nanny to use direct deposit in Oregon?

Yes. Oregon allows direct deposit for household employees. Federal Regulation E still applies: your nanny must be free to choose their own bank, or you offer another payment method. Get a written, signed authorization before the first deposit, even though Oregon does not strictly require one.

What records do I need to keep for a Oregon household employee?

Keep them for at least 4 years after the return reporting the tax was due, or the tax was paid, whichever is later. Timesheets, pay stubs, W-2 copies, payment confirmations and SUTA filings. Oregon follows the federal baseline, so 4 years covers both. Most household-employer audits open with the IRS or a state agency asking for exactly these records, so keep them with your tax filings. Source: IRS Publication 926.

All State Guides

Oregon Nanny Tax Guide

Oregon has one of the higher income tax rates in the country, reaching 9.9%. The state also has a Paid Family and Medical Leave program. Its transit payroll taxes do not apply to a household employer.

Oregon household employer quick facts

Applies in Oregon

State income tax withholding
State unemployment
Paid family leave

Not in Oregon

Disability insurance

Minimum Wage

$7.25/hour

That is the federal floor, because the state's own rate does not cover nannies.

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SUTA Rate Range

0.7% - 5.4%

New employers: 2.4% on the first $56,700 (2026). Oregon Employment Department

Key things to know

Progressive state income tax (4.75% - 9.9%)
Paid Family and Medical Leave program
Oregon's $15.55/hour minimum does not cover nannies. The federal $7.25/hour floor applies.
No TriMet, Lane Transit or statewide transit tax on a nanny's pay

Oregon Employer Requirements

State Income Tax

Oregon uses progressive tax brackets: 4.75% to $4,550, 6.75% to $11,400, 8.75% to $125,000, and 9.9% above. Standard deduction is $2,910 (single).

Paid Family and Medical Leave

Oregon's PFML requires employee contributions of 0.6% (household employers under 25 are exempt from employer share). Benefits provide up to 12 weeks of paid leave.

Transit District Taxes (TriMet, Lane Transit)

These don't apply to a household employer. Oregon exempts domestic service in a private home from the TriMet (0.8237%) and Lane Transit (0.80%) payroll taxes and from the 0.1% Statewide Transit Tax, so none is charged to you or withheld from your nanny's pay.

State Unemployment Insurance

Employers pay SUI tax on the first $56,700 of wages. New employer rate is 2.4%, with rates ranging from 0.7% to 5.4% based on experience. Oregon unemployment tax is paid entirely by the employer and is never withheld from your nanny's pay.

Workers' Compensation

Oregon doesn't require workers' compensation for household employers, since domestic workers in a private home are exempt under Oregon law. It's still worth considering: it protects your employee if they're injured at work, and protects you from potential liability.

Oregon household employer questions

What will it cost?

Wondering what you'll actually owe as a Oregon employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.

This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.

Verified accurate as of June 2026Sources: Oregon tax agency, IRS Publication 926

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Oregon Nanny Tax Guide

Oregon household employer quick facts

Oregon Employer Requirements

State Income Tax

Paid Family and Medical Leave

Transit District Taxes (TriMet, Lane Transit)

State Unemployment Insurance

Workers' Compensation

Oregon household employer questions

What will it cost?

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