What Is the Oregon WBF Tax and How Is It Calculated?
Oregon employers: Understand the WBF tax, how it's calculated, and the steps for accurate reporting and payment.
The Oregon Workforce Bank Fund (WBF) tax is an employer-paid assessment in Oregon. It contributes to the state’s comprehensive workforce development programs, funding initiatives to enhance the skills of the labor force and support economic growth.
Understanding the Oregon WBF Tax
The Oregon WBF tax supports programs benefiting injured workers and their families, facilitating return-to-work initiatives, and providing benefits for those permanently disabled due to workplace injuries or diseases. This assessment is a mandatory contribution for most employers with employees working in Oregon.
It is distinct from workers’ compensation insurance premiums, though it is part of the overall workers’ compensation insurance requirements. The tax applies to all paid workers, owners, and officers covered by Oregon’s workers’ compensation laws, regardless of direct workers’ compensation insurance coverage.
Employers are responsible for this assessment, not employees, though they can deduct a portion from employee wages. Generally, the tax covers a broad range of employers. The Department of Consumer and Business Services determines the assessment rate to ensure the fund meets its balance requirements.
Calculating the WBF Tax
The WBF tax calculation is based on the number of hours an employee works. It is not calculated as a percentage of wages, but rather a “cents per hour” rate. For 2025, the WBF assessment rate is 2.0 cents per hour worked.
Employers contribute half of this hourly assessment, and they are allowed to deduct the other half from the employee’s wages. For instance, if the total rate is 2.0 cents per hour, the employer pays 1.0 cent per hour, and the employee’s share is also 1.0 cent per hour.
If an employer chooses to pay the entire assessment on behalf of the employee, that portion becomes a taxable benefit to the employee for income tax purposes. The assessment is calculated on hours worked, including overtime, but excludes leave hours such as sick, vacation, or holiday time.
Reporting and Paying the WBF Tax
Employers are required to report and pay the WBF assessment directly to the state, typically with other state payroll taxes. The Oregon Department of Revenue and the Oregon Employment Department oversee the collection and reporting of these taxes.
The WBF assessment is generally reported quarterly using the Oregon Quarterly Tax Report (Form OQ). Quarterly reports and payments are usually due on the last day of the month following the end of each calendar quarter.
Due dates are April 30th for the first quarter, July 31st for the second quarter, October 31st for the third quarter, and January 31st for the fourth quarter. Employers can file and pay electronically through the state’s online portal, Frances Online, which streamlines the process for various payroll taxes, including WBF. Accurate record-keeping of employee hours worked is important for correct calculation and reporting of the WBF assessment.