You can choose coverage
How Paid Leave Oregon works when you’re self-employed.
What you need to know
If you are self-employed, you’re not automatically covered under Paid Leave and don’t have to participate. You can choose coverage if:
- Your work is in Oregon, and
- You earned at least $1,000 in Oregon net income from self-employment (income after your expenses) in the prior tax year before you apply
If you choose coverage, you get the same benefits as other employees. Learn more about these benefits and the types of leave you can take.
Here’s how Paid Leave Oregon generally defines what it means to be self-employed or an independent contractor:
- If you work for and make a profit from your business instead of working for a specific employer, and
- You report your profit from your business as self-employed income on your taxes
Why should I choose Paid Leave Oregon coverage if I’m self-employed?
Here’s what you need to know to choose Paid Leave coverage if you are self-employed.
What benefits will I get?
If you choose coverage, you get the same benefits as other employees. Learn more about these benefits and the types of leave you can take.
What will Paid Leave Oregon cost me?
If you choose coverage, you will make quarterly contributions. Here’s how it works:
- The 2023 total contribution rate is 1%.
- You’ll pay 60% of the 1% contribution rate on income up to $132,900. (This is the same as what employees pay on their wages.)
- Your contribution is based on your net income from self-employment (income after expenses) from the prior year’s tax return. For example, if your net income from self-employment from your prior year’s Oregon personal income tax return was $10,000, you would pay $60 (60% of the total contribution rate of 1%) for the year. Your portion of the contribution payments is due quarterly, so you would pay $15 per quarter through Oregon’s Revenue Online.
- Your contribution will not be more than 0.6% of your Oregon net income from self-employment up to $132,900. You can use the contributions calculator to estimate how much you’ll pay.
When can I choose to sign up for Paid Leave Oregon?
You can choose Paid Leave coverage beginning Jan. 1, 2023. You'll start by creating an account in Frances Online. Here are some things to keep in mind:
- You'll create an account in Frances Online as self-employed
- If you choose Paid leave coverage, you'll need to agree to pay contributions for at least 3 years
- You will need a copy of your Oregon personal income tax return for the prior year
Once you've created an account, you can choose coverage by following the instructions on how to choose Paid Leave Oregon. Frances Online is the quickest and easiest way to apply for a grant.
Self-employed application is also available on the forms page.
Important dates to know
Registration begins if you choose Paid Leave Oregon coverage.
If you choose Paid Leave Oregon coverage, you will get a bill for the contribution amount due.
Benefits begin.
