Do I need a permit to hire employees?

Hiring Employees in Oregon: Permit and Registration Requirements

In Oregon, you do not need a specific permit solely to hire employees. However, there are important registration and compliance steps to follow before hiring.

Key Operational Steps Before Hiring Employees

• Register Your Business with the Oregon Secretary of State: Ensure your business is properly registered and in good standing.
• Obtain an Employer Identification Number (EIN): Required by the IRS for payroll and tax reporting purposes.
• Register for Oregon State Payroll Taxes: You must register with the Oregon Department of Revenue and the Oregon Employment Department to handle state income tax withholding and unemployment insurance taxes.
• Verify Work Eligibility: Complete Form I-9 for each new hire to verify legal work status.
• Obtain Workers’ Compensation Insurance: Oregon requires most employers to carry workers’ compensation coverage.

Additional Operational Considerations

• Employee Classification: Correctly classify workers as employees or independent contractors to ensure compliance with tax and labor laws.
• Recordkeeping: Maintain accurate payroll and employment records as required by state and federal regulations.
• Compliance with Labor Laws: Follow Oregon labor laws regarding wages, hours, and workplace safety.
• Reporting New Hires: Report new hires to the Oregon New Hire Reporting Center within 20 days of hiring.

As of 2026, these steps are essential for operational readiness when hiring employees in Oregon. Staying compliant with registration, tax, and insurance requirements will help avoid penalties and support smooth business operations.