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Oregon agency seeks rulemaking authority to shield paid‑leave benefits from IRS payroll-tax ruling
Summary
Oregon Employment Department told senators SB 1520 would let the agency label contributions so medical leave benefits are paid from employee‑sourced funds, avoiding payroll-tax treatment after an IRS ruling; the IRS granted states an extension to January 2027.
The Oregon Employment Department (OED) told the Senate Committee on Labor and Business that Senate Bill 1520 would give the agency narrow rulemaking authority to adopt an accounting system that separates employer and employee contributions to the state's paid-leave trust to comply with an IRS ruling.
Andrew Stolfi, OED director, said the IRS ruled that employer‑funded portions of medical…
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