Paid Leave Oregon—Equivalent Plan Deadline November 30

We don’t need to remind you (hopefully) that Paid Leave Oregon begins to take effect January 1, 2023. 

But we may need to remind you of some important deadlines if you are opting out of the state plan and into an Equivalent Plan.

Here are the important dates to remember:

• November 30, 2022: Employers must decide whether to stay with Paid Leave Oregon or offer employees an equivalent, state-approved plan. Declarations of Intent for an Equivalent Plan must be submitted by this date. As a reminder, the Declaration of Intent is simply your declaration that you intend to submit an application for approval of an Equivalent Plan no later than May 31, 2023. Employers whose Equivalent Plans are approved by this date will be exempt from paying contributions beginning with the first quarter of 2023, beginning on January 1, 2023. 
• January 1, 2023: Employees and employers are required to begin contributing to the Paid Leave Oregon program fund, unless an Equivalent Plan was approved, or a Declaration of Intent for an Equivalent Plan was submitted by November 30, 2022.
• May 31, 2023: Equivalent Plan applications must be submitted to the Oregon Employment Department by this date. If the application is not submitted, the Declaration of Intent is cancelled, and the employer must remit all contributions to the state program and may be subject to penalties and interest

If an employer does not submit a Declaration of Intent, then there are three dates that determine when an employer will be exempt from paying contributions to the state: 

• February 28, 2023: Employers whose Equivalent Plans are approved by this date will be exempt from paying contributions beginning with the second quarter of 2023, beginning on April 1, 2023. Such employers will be required to pay contributions in the first quarter of 2023 starting January 1. For example, an employer whose Equivalent Plan receives approval in January of 2023 will be required to submit the employer and employee contributions to the state for the first quarter of 2023. Beginning on April 1, 2023, they would no longer be required to pay the contributions to the state.
• May 31, 2023: Employers whose Equivalent Plans are approved by this date will be exempt from paying contributions beginning with the third quarter of 2023, beginning on July 1, 2023. Such employers will be required to pay contributions in the first and second quarters of 2023 starting January 1.
• June 1, 2023: If an employer submits an application on or after June 1, 2023, then all required contributions must be sent to the state until the effective date of the equivalent plan.

For most employers with 25 or more employees an Equivalent Plan will result in a cost savings when compared to the state program.  If you are considering an equivalent plan, please email our partner, CSNW Benefits or give them a call at 503-542-4093. CSNW will help you explore your options for a fully insured third party equivalent plan. But don’t wait, these deadlines are fast approaching.

Don’t forget to keep checking out our Paid Leave Oregon Resource Center for updates.