Who will contribute to the proposed payroll tax and how much will it cost?

A payroll tax is levied as a percent of gross payroll earned within the taxing jurisdiction. Entities can enact a payroll tax on employees and/or on employers. 

See the chart below to estimate how much you will contribute each month. A business owner will not be taxed twice (as both an employee and the employer).

Monthly Cost to Minimum Wage Employees

Tax Rate$12/hr*

* As of July 1, 2020, the minimum wage in Eugene will be $12 per hour.

Monthly Cost to Employees Earning $12.01-$15/hour

Tax Rate$13/hr$14/hr$15/hr

Monthly Cost to Employees at Various Hourly Wages Above $15/hour

Tax Rate$16/hr$20/hr$24/hr$28/hr$32/hr$36/hr$40/hr

Monthly Cost to Employers (2 or Less Employees) with Annual Gross Payroll of $100,000

Tax Rate$100,000**

**An employer with two employees or less would receive a reduced rate of .0015 on the first $100,000 of payroll. 

Monthly Cost to Employers (More than 2 Employees) with Annual Gross Payroll of $500,000

Tax Rate$500,000

The revenue team recognized that the payroll tax doesn’t impact every segment of the population. It will not capture revenue from visitors, city residents employed elsewhere, retirees and the unemployed. The revenue team, however, thought that this approach was the most clear and fair of the final options considered.

Show All Answers

1. Why do the City’s community safety services need more funding?
2. How did the Council decide on a payroll tax?
3. What is a payroll tax?
4. Who will contribute to the proposed payroll tax and how much will it cost?
5. How will the City be held accountable with money earned from the payroll tax?
6. Who will be on the community review panel?
7. How long will it take for the tax to go into effect?
8. When and how can employers expect to hear from the City about how it will work?
9. Will public employees have to pay the payroll tax?
10. How will it work for companies that have an office in Eugene, but are based elsewhere? What about a remote worker whose employer is in Eugene? Does it matter how often they visit the home office?
11. What do I get for my money?
12. Where does Community Safety funding come from now?
13. Why isn’t money from the marijuana tax, or other taxes, being used instead of a payroll tax?
14. Does Oregon have a payroll tax?
15. How is it legal that I can be taxed for local services if I don't live in Eugene and don't have representation there? (i.e., no taxation without representation)