Starting from 2023, Oregon employers are required to deduct contributions to Paid Family and Medical Leave insurance fund from payroll. This amount is reported on W-2 box 14 with code "PFML" or similar. To make a distinction from other topics where "PFML" is mentioned, this is not a benefit received, but a payroll deduction. When I import W-2 to Turbotax, it asks me to select category for this item. In the provided list of categories, the closest two are "Oregon Paid Leave" (though, this may be related to benefits received and not the payroll deduction) and "Other deductible state or local tax" (however, if I understand correctly, this is not a tax per se but rather mandatory paid leave insurance contributions imposed by the state). What category should I choose? Will this amount have any effect in the tax return? Is it part of SALT? Can it be deducted from local taxable income for Portland Metro SHS and PFA taxes?
