The PLO contribution rate for 2024 will stay the same as 2023 at 1% of each employee’s wages. However, employers should note that the taxable wage cap is increasing from $132,900 to $168,600 which coincides with the Social Security taxable maximum wage amount for 2024. $132,900 was the cap established in 2019 when PLO rulemaking began. The administrative rules state that beginning with calendar year 2024, the maximum wage amount will tie to the social security wage cap and increase annually based on the same consumer price index increase that applies to the social security wage cap. Because of this, we do not anticipate large increases going forward.
Contributions for PLO are divided between employees and employers, with 60% of the rate paid by employees and 40% by large employers.
Each November, the Oregon Employment Department notifies employers of tax and contribution rates for the next calendar year. The contribution rate is based on premiums received and benefits paid during the previous year. This information is also posted in employers’ Frances Online account.
Next Steps
Employers should work with their payroll department and/or vendors to ensure the updated taxable wage base is used for employee contributions beginning January 01, 2024.
IMA will continue to monitor regulator guidance and offer meaningful, practical, timely information.
This material should not be considered as a substitute for legal, tax and/or actuarial advice. Contact the appropriate professional counsel for such matters. These materials are not exhaustive and are subject to possible changes in applicable laws, rules, and regulations and their interpretations.