The directions you're referring to were part of a workaround last year if your payer did NOT put zero in Box 1; instead of entering the W-2 itself you entered one line of miscellaneous income with the W-2 amount & EIN, then an offsetting negative entry mentioning the notice to let the IRS know why the W-2 wasn't entered normally. (It may not even work this year; I only became aware of this kind of payment a few days ago from another TurboTax user claiming the negative amount kept them from filing.) You don't need to do that because your payer correctly entered zero in Box 1, thus there's nothing to offset on your Federal return.
If Oregon treats it as taxable, Box 16 should put it on your state return; that box is your total Oregon wages, and is not specific to this kind of payment. If it's not taxable in Oregon, your payer needs to correct your W-2 to show zero in Box 16 as well.
