Running payroll in Oregon means handling more state deductions than most employers expect. Beyond income tax, each check carries a statewide transit tax and a Paid Leave Oregon contribution. A small hourly assessment also funds help for injured workers. That stack is why so many owners compare payroll services Oregon providers offer. The SBA Office of Advocacy reports 417,747 small businesses in Oregon, which together employ 889,528 people.
Wages add another layer. The Bureau of Labor and Industries (BOLI) sets 3 regional minimums. Since July 1, 2026, they stand at $15.55 an hour (standard), $16.80 in the Portland metro and $14.55 in nonurban counties. Small groups also pay more per head for health insurance than large ones. Co-employment firms need a state license, and the Workers’ Compensation Division publishes the list of active licensees.
Why Oregon Businesses Outsource Payroll
An Oregon paycheck has more deductions than most. State income tax is withheld at 4.75% to 9.9%, based on the employee’s Form OR-W-4 and the Department of Revenue (DOR) tables. A 0.1% statewide transit tax is withheld from every check, and Paid Leave Oregon and the Workers’ Benefit Fund (WBF) assessment are deducted as well. All of it is reported on the quarterly Form OQ. Staff in the TriMet or Lane Transit District areas also trigger an employer-only transit tax, and higher earners may owe Portland-area income taxes. Oregon payroll services earn their fee by applying the right regional rules to each worker.
INSIGHT: What comes out of an Oregon paycheck in 2026?
Oregon stacks several state and regional deductions on top of income tax, so a correct paycheck depends on where each person lives and works.
- State income tax: 4.75% to 9.9%, withheld according to Form OR-W-4 (DOR, November 2026).
- Statewide transit tax: 0.1% of wages, withheld from employees, with a planned rise to 0.2% on hold (EY Tax News, December 17, 2025).
- Paid Leave Oregon: 1% of wages up to $184,500, with 60% paid by the employee (OED, November 2026).
- WBF assessment: 1.8 cents per hour worked in 2026, with employers paying at least half (DCBS, November 2026).
The employer side starts with unemployment insurance (UI). The Oregon Employment Department (OED) taxes the first $56,700 of each worker’s 2026 wages under Tax Schedule 3. New employers pay 2.4%, and rated employers pay 0.9% to 5.4%. Firms with 25 or more employees add the 40% employer share of Paid Leave Oregon. Form OQ is filed each quarter through Frances Online; new hires are reported within 20 days, and federal FICA and FUTA also apply. Professional payroll services Oregon companies hire take on those filings. A licensed worker leasing company can also carry workers’ comp for the people it leases to you.
Benefits and injury coverage are where a co-employer goes further than a payroll vendor. Oregon requires workers’ compensation as soon as you have 1 subject worker. Under rules set by the Workers’ Compensation Division (WCD), a licensed leasing company can cover your team under its own policy. Most packages offer pooled medical, dental, vision, and 401(k) plans to your staff. A 401(k) also satisfies the rule that employers without a qualified plan must facilitate OregonSaves. Sick time is paid once you have 10 Oregon employees, or 6 with a Portland location. Those duties drive much of the demand for a PEO in Oregon.
INSIGHT: Which insurance and benefits does an Oregon employer have to provide?
Workers’ comp from the first worker, Paid Leave Oregon withholding, sick time, and a retirement option form the baseline. Medical coverage is voluntary for small employers, but candidates ask for it, and pooling makes it affordable.
- Workers’ comp: required once an employer has 1 subject worker (WCD, November 2026).
- Paid Leave Oregon: employers with 25 or more employees pay a 40% share of the 1% contribution (OED, November 2026).
- Sick time: workers earn an hour for every 30 they work, capped at 40 a year. It is paid at 10 or more Oregon employees, or 6 with a Portland location (BOLI, November 2026).
- Health coverage: the ACA employer mandate applies at 50 full-time-equivalent employees (IRS, November 2026).
In practice, Oregon owners pick from 3 setups. Plain payroll firms cut checks and file returns, then stop. A co-employer adds benefits, workers’ comp, and HR while you still run the team. That model is the subject of my explainer on what a PEO is. Advisory HR outsourcing, with no co-employment, lands in the middle. Before you sign with a PEO, Oregon law gives you a check. Under ORS 656.850, these firms need a worker leasing license from WCD, and the division posts its list of active licensees. House Bill 2800 switches the license name to PEO from July 1, 2027.
Federal certification is a separate question, answered by the IRS list of Certified PEOs (CPEOs). A certified provider becomes solely liable for federal payroll taxes on the wages it pays your team. Of the 15 providers below, Syndeo HRO is the one whose entities appear on that list.
My shortlist holds 15 names: payroll and co-employment firms based here, plus out-of-state PEOs that take Oregon clients. For each one, I note its services, its pricing approach, and the business it suits. Owners who also want to weigh national names can read my roundup of the best PEO companies.
Top 15 Oregon PEO and Payroll Providers
Before reading the blocks, answer 3 questions. Do you need payroll and filings only, a co-employer that bundles benefits and comp cover, or HR help without co-employment? How does your headcount compare with the 10-employee paid sick time mark, the 25-employee Paid Leave Oregon mark, and the 50-employee ACA mark? Would you rather work with a local firm or a national provider with a larger benefits pool?
I judged PEO companies in Oregon on a short set of criteria. Any co-employer needs a current WCD worker leasing license, plus correct handling of transit taxes, Paid Leave Oregon, and regional wages. After that, I looked at how each handles injury coverage and how strong its medical and 401(k) plans are. Last came pricing openness and whether CPEO or ESAC claims check out.
All 15 providers appear in A-to-Z order. The sequence says nothing about quality, preference, or ranking.
AdvanStaff HR
Provider Type:
Las Vegas co-employer that says it covers all 50 states
Company Description:
AdvanStaff HR says it has 33 years of HR experience, covers all 50 states, and manages more than 85,000 employees. Its co-employment package bundles payroll, benefits, compliance, workers’ comp, and HR software for businesses with 1 to 100+ employees.
Key Specialty Area:
Tiered PEO plans sized from 1 to 100+ staff
Service Cost:
Quote on request; a free benefits benchmark comes first
Top Advantages:
- Says it holds ESAC accreditation as a PEO
- Average reply time under 1 hour, the company says
- Time tracking through UKG Kronos or SwipeClock
Scope of Services:
- Payroll with taxes, filings, and direct deposit
- Medical, dental, vision, and retirement plan access
- Workers’ comp claims, coverage and risk support
Our Verdict
Franchise owners with stores in several Oregon cities can run every location through one co-employer here.
All PEO
Provider Type:
Tualatin-based co-employer with 6 Oregon branches
Company Description:
All PEO works from Tualatin, with branches in Salem, Albany, Eugene, Tigard, and Bend. It says it serves hundreds of small and mid-sized clients in 6 states. It co-employs staff by placing them under its federal and state tax IDs and leasing them back.
Key Specialty Area:
Branch network across the Willamette Valley and Bend
Service Cost:
Proposal-based, requested by email
Top Advantages:
- 6 branch offices for in-person help
- Workers’ comp administration and audits included
- Wage garnishments and IRS levies handled for you
Scope of Services:
- Pay runs with direct deposit for every worker
- Human resource consulting and compliance
- Garnishment, child support and levy management
Our Verdict
Salem and Eugene owners who like face-to-face meetings can drop into a nearby All PEO branch.
Allevity
Provider Type:
West Coast payroll and HR provider based in Northern California
Company Description:
Allevity has served employers for about 50 years, per its site, from offices in Chico, Sacramento, and San Mateo, California. It offers full-service HR, payroll, recruiting and staffing, plus a PEO program with employer and employee portals.
Key Specialty Area:
Long-running California firm for payroll and HR
Service Cost:
Pricing follows an introductory needs call
Top Advantages:
- Labor law updates and HR compliance handled for you
- Recruiting help when you need to fill roles
- Portals for both employers and employees
Scope of Services:
- Pay runs and state and federal tax returns
- Full-service HR and benefits management
- Recruiting and staffing support
Our Verdict
Southern Oregon firms with staff across the California line may like one provider for both states.
Alliance HR
Provider Type:
Tequesta-founded co-employer with clients in many states
Company Description:
Alliance HR was founded in 2014 in Tequesta, Florida, and offers PEO, administrative services only (ASO), and payroll-only plans. It focuses on industries with higher workers’ comp costs or complex payroll, such as construction, landscaping, and manufacturing.
Key Specialty Area:
In-house payroll funding for higher-risk industries
Service Cost:
Custom quote, with services added or removed by plan
Top Advantages:
- On-demand payroll financing without factoring, per the company
- Access to A+ rated workers’ comp insurance
- Garnishments and deductions administered for you
Scope of Services:
- PEO, ASO, or payroll-only service plans
- Medical and 401(k) coverage options
- Tax reporting at every government level
Our Verdict
Contractors whose cash flow swings between jobs may value payroll funding bundled with comp cover.
American Admin
Provider Type:
Local PEO with offices in Portland and Albany
Company Description:
American Admin, Inc. is a boutique PEO founded by Ramona Mathany, with offices in Portland and Albany. American Admin works with smaller firms in Oregon, Washington, Idaho, and Arizona that employ 1 to roughly 200 people.
Key Specialty Area:
Hire-to-retire administration for small mixed industries
Service Cost:
Proposal by email or phone
Top Advantages:
- Program customized with an HR specialist
- Employee leasing for teams from 1 to 200
- Payroll and tax reporting handled personally
Scope of Services:
- Wage processing and employment tax returns
- Workers’ comp and benefits administration
- Human resource services and compliance
Our Verdict
Mid-valley owners in Albany or Corvallis can work with a nearby co-employer that also covers neighboring states.
Confident Staffing
Provider Type:
Local staffing firm based in Medford
Company Description:
Confident Staffing is a Medford staffing company founded in 2002 and part of The Confident Companies. A sister brand, Confident Employee Leasing, provides worker leasing alongside the group’s temporary and direct-hire staffing.
Key Specialty Area:
Staffing plus worker leasing in southern Oregon
Service Cost:
Quote-based for staffing and leasing
Top Advantages:
- Local team based in the Rogue Valley
- Temporary, temp-to-hire, and direct-hire options
- Leasing through a related company for steady staff
Scope of Services:
- Temp and temp-to-hire placements
- Recruiting for permanent, direct-hire positions
- Employee leasing through Confident Employee Leasing
Our Verdict
Rogue Valley employers who need extra workers and payroll relief can get both from one local group.
Emplova
Provider Type:
Co-employment provider serving clients nationwide
Company Description:
Emplova was founded by an executive team with more than 50 years of combined PEO experience, per its site. It co-employs staff to provide payroll, benefits it calls affordable, HR services, compliance support, and a 24/7 employee self-service portal.
Key Specialty Area:
Large-employer benefit pricing for small staffs
Service Cost:
Quote-based through its contact form
Top Advantages:
- ESAC bonded and accredited badge shown on its site
- Employee self-service on any device, day or night
- Dedicated employee assistance team for staff questions
Scope of Services:
- Payroll runs with tax deposits and returns
- Employee benefits and HR client service
- Compliance and risk mitigation
Our Verdict
Teams that want staff to handle their own pay and benefit changes online will find Emplova’s portal useful.
Kaya HR
Provider Type:
Portland co-employer, locally owned since 1998
Company Description:
Kaya HR has served Portland businesses since 1998 as a locally owned boutique PEO. Clients choose Total HR Solutions, a bundled co-employment service, or Focused HR Solutions, which adds specific HR services alongside an existing team.
Key Specialty Area:
Boutique Portland PEO with long-tenured staff
Service Cost:
Rates agreed once Kaya has met your team
Top Advantages:
- Staff average 15.5 years with the company, per Kaya
- The same people answer each call
- Choice between full PEO and targeted HR help
Scope of Services:
- Payroll plus benefit plan administration
- Compliance tracking and workplace risk control
- Custom HR services for in-house teams
Our Verdict
Portland owners who want to know their payroll contact by name should call Kaya early in their search.
Key HR
Provider Type:
Orlando, Florida co-employer working through partner carriers
Company Description:
Key HR is based in Orlando, Florida, and offers employee leasing under a co-employment agreement. It takes on workers’ comp, unemployment claims, payroll, and payroll tax duties, and works with preferred partner companies on benefits and insurance.
Key Specialty Area:
Partner-network PEO for start-ups to mature firms
Service Cost:
Quote follows a look at your current payroll
Top Advantages:
- Payroll tax compliance and unemployment claims handled
- Access to a network of benefits and insurance partners
- Monthly newsletter on employment law changes
Scope of Services:
- Employee leasing and payroll services
- Health benefits and insurance products
- Workers’ comp claims administration
Our Verdict
Owners who want one firm to compare several carriers’ benefit and insurance offers should ask Key HR.
LevelUp HR
Provider Type:
Maui-based co-employer serving clients on the mainland too
Company Description:
LevelUp HR is based in Maui and has served the Hawaiian Islands and beyond for over 25 years, per its site. It is a certified minority business enterprise offering a full-service PEO package with payroll, benefits, HR support, compliance, and multi-state help.
Key Specialty Area:
Multi-state PEO support from a smaller team
Service Cost:
Quote-based, with transparent pricing promised
Top Advantages:
- Certified minority business enterprise, per LevelUp
- Multi-state support for teams outside one state
- Group health plans with administration included
Scope of Services:
- Payroll runs, tax deposits, and quarterly returns
- Benefits administration and group health access
- HR support, training and workers’ comp claims
Our Verdict
Firms spread across several states that want a small provider’s attention should get a LevelUp quote.
Payroll Resources
Provider Type:
Local payroll and PEO provider in Eugene
Company Description:
Payroll Resources, LLC is an Oregon payroll service at 405 Lincoln Street in Eugene. Owners can pick a basic payroll plan with processing and tax payments, or a PEO relationship that adds HR management and employee benefits.
Key Specialty Area:
Payroll-first service with an optional PEO upgrade
Service Cost:
Quote-based for either payroll or PEO
Top Advantages:
- Basic payroll plan for owners who want only the essentials
- PEO option moves unemployment claims off your account
- Fewer late tax payments and agency notices, per the company
Scope of Services:
- Payroll processing and payroll tax payments
- Human resources management and policy support
- Benefit plans and their day-to-day administration
Our Verdict
Eugene and Springfield owners who want payroll now and a PEO later can stay with one local firm.
Syndeo HRO
Provider Type:
Wichita, Kansas co-employer with IRS certification
Company Description:
Syndeo HRO co-employs staff for companies of any size, covering HR, payroll, benefits, risk management, safety training, and recruitment. Syndeo Outsourcing, LLC and Syndeo Outsourcing II, LLC are both named on the IRS roster of certified co-employers, as of August 7, 2026.
Key Specialty Area:
IRS-certified PEO with recruiting and workforce solutions
Service Cost:
Tailored quote built around your needs and budget
Top Advantages:
- Federal certification shown on the IRS CPEO roster
- High-volume hiring and recruiting support
- Regulatory monitoring to flag compliance changes early
Scope of Services:
- Payroll services and benefits administration
- Risk management and safety training
- Recruitment and workforce solutions
Our Verdict
Growing companies that hire in volume and want a certified co-employer should compare Syndeo closely.
Tandium
Provider Type:
Co-employer branded TANDIUM Elite PEO
Company Description:
Tandium operates as TANDIUM Elite PEO and says it has more than 30 years of experience serving businesses and nonprofits. It offers a PEO with co-employment, an ASO without it, payroll only, HR consulting, and benefits programs.
Key Specialty Area:
PEO, ASO, and payroll options for nonprofits too
Service Cost:
Quote-based, customized for each program
Top Advantages:
- Full HR audit with handbook review or rebuild
- Dedicated professionals to support recruiting
- Programs built for nonprofit organizations as well
Scope of Services:
- Pay processing with payroll tax returns
- Employee benefits and insurance plans
- HR advice, audits, and compliance help
Our Verdict
Nonprofits weighing co-employment against a lighter ASO setup can ask Tandium to quote both side by side.
The Caputo Group
Provider Type:
Local PEO in the Portland area
Company Description:
The Caputo Group began as a staffing company in the late 1990s and grew into a full-service PEO for small businesses. It works with contractors, restaurants, staffing agencies, cannabis businesses, and breweries, handling payroll, HR, compliance, workers’ comp, and benefits.
Key Specialty Area:
PEO support for cannabis, brewing, and restaurant employers
Service Cost:
Quote after a short fit assessment
Top Advantages:
- Industry focus on cannabis, brewing and hospitality
- Payroll audits and unemployment claim handling
- State sick leave compliance included
Scope of Services:
- Payroll with cash cards and bookkeeping
- HR handbooks, training and mediation
- Workers’ comp, benefits and retirement plans
Our Verdict
Portland breweries, cannabis shops and restaurants get a co-employer that already knows their compliance quirks.
Xenium HR
Provider Type:
Local HR and payroll firm based in Portland
Company Description:
Xenium HR is a Portland firm with 25 years in business. Its Custom HR consulting suits companies with little or no HR staff. Complete HR + Payroll adds full-service payroll, benefits administration, 401(k), and FSA. Neither path is presented as co-employment.
Key Specialty Area:
HR and payroll consulting services Oregon teams can scale
Service Cost:
Pricing after an initial discovery call
Top Advantages:
- More than 90 experts on staff, per Xenium
- Live and on-demand supervisor training programs
- HRIS platform with electronic onboarding
Scope of Services:
- As-needed HR consulting and project work
- Full-service payroll and tax administration
- Benefits administration, 401(k) and FSA support
Our Verdict
Companies that already have an HR person but need backup capacity will get the most from Xenium.
What Oregon Employers Pay for Payroll and PEO Help
Payroll-only vendors usually bill a base fee per pay run plus a charge per employee, and no provider on this list publishes its rate. Co-employers price either per employee per month or as a percentage of gross payroll, also by quote. Payroll-only plans cost less, but you arrange benefits and workers’ comp.
When you buy PEO services in Oregon, the service fee usually pays for pay runs, plan administration, comp claim handling, and an HR adviser. Insurance premiums, 401(k) charges, and setup work tend to show up as extra lines. State costs come on top. UI applies to the first $56,700 of wages at your OED 2026 rate, and the employer Paid Leave Oregon share starts at 25 employees. The employer half of the WBF assessment also applies. Add TriMet or LTD tax where staff works in those districts, along with FICA, FUTA, and comp premiums. Measure each quote as a full-year cost per employee.
INSIGHT: What should Oregon payroll services handle for you?
Oregon payroll has more moving parts than most states, so check how a provider handles each item below.
- UI: first $56,700 of wages, 2.4% for new employers (OED, November 2026).
- Minimum wage: 3 regional rates, updated every July 1 (BOLI, November 2026).
- Form OQ: state payroll taxes reported every quarter through Frances Online (OED, November 2026).
- Hiring reports: each new employee goes to the state within 20 days (OED, November 2026).
Sources:
Portland-area firms often employ people who live across the Columbia River in Vancouver, Washington, where there is no state income tax but leave rules differ. Those workers are covered in my look at the PEO companies in Washington.
Southern Oregon employers in Medford or Grants Pass sometimes add staff across the California line, where wage and leave rules are even stricter. For those hires, see the PEO companies in California I compared.
Oregon Payroll and PEO Questions, Answered
What does a PEO do for a small business in Oregon?
Your staff moves onto the co-employer’s tax accounts, so it pays them and files the federal returns and Oregon’s quarterly Form OQ. Its pooled medical, dental, and retirement plans become available to your people, and injuries usually fall under its comp policy. Handbooks, onboarding forms, and leave tracking move to the provider. You keep authority over hiring, firing, and daily work. The service agreement records which duties shift and whether you or the provider carries workers’ comp.
Do PEOs need a license in Oregon?
Yes. Under ORS 656.850, a co-employer needs a worker leasing license from the Workers’ Compensation Division before it operates here. Licenses run for 2 years. The division publishes a list of active licensees, which shows legal entity names that can differ from brand names. A 2025 law, House Bill 2800, renames the license and extends it to co-employment relationships whether or not a fee is charged. That change becomes operative on July 1, 2027.
When does an Oregon business need workers’ compensation?
From the first subject worker. Coverage comes from an insurance company or approved self-insurance, overseen by the Workers’ Compensation Division. Many small firms get it through a licensed leasing company. That company covers leased workers unless the client keeps its own policy on file with the state. Check which arrangement your contract uses before the start date, because a gap in coverage leaves the employer exposed for any claim. Keep the policy number with your payroll records.
What is Paid Leave Oregon and who pays for it?
Paid Leave Oregon pays workers during family, medical, and safe leave. For 2026, contributions are 1% of wages up to $184,500 per employee. Employees pay 60% of that, and employers with 25 or more employees pay the remaining 40%. Smaller employers skip the employer share but still withhold the employee portion and send it in with Form OQ each quarter. The Oregon Employment Department sets the rate and wage cap every year, so review them each January.
How much do payroll services in Oregon cost?
Payroll-only vendors usually charge a base fee per pay run plus a set amount per employee. Co-employment firms bill either per worker each month or as a cut of gross wages. They quote only after seeing your staff count, trade, and plan picks. Health premiums, comp premiums, and retirement plan costs are normally billed on top. State unemployment tax, the employer leave share, and any transit district tax apply on every route. Ask each provider for a 12-month total per employee so quotes compare fairly.
What is the minimum wage in Oregon?
Since July 1, 2026, the standard minimum wage is $15.55 an hour, the Portland metro rate is $16.80, and the nonurban rate is $14.55. The rates rise with inflation every July 1, and BOLI publishes which counties fall in each tier. Tips cannot count toward the wage in Oregon, so servers and bartenders earn the full regional rate before gratuities. Weekly hours past 40 earn time and a half, and a few industries also follow daily overtime limits.
Helen is Anywherer’s Market Analyst & Content Researcher, with extensive experience in analyzing global employment markets and HR technology trends. She is skilled at turning complex market data into clear, well-researched insights that inform every piece of content. With a strong grasp of the EOR, PEO, and international hiring space, Helen plays a key role in keeping Anywherer’s research accurate, up to date, and genuinely useful for readers.
