Oregon PFML tax reported on W-2

[ora123]

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?

[DMarkM1 · Accepted solution]

The best option is the box 14 category for "OR Paid leave;" this not benefits related.  Benefits will not be reported in box 14 on a form W2.  

You are correct OR employers are to deduct employee contributions to the OR Paid Leave program from employee pay. Those contributions are post-tax meaning they are still included in box 1 as taxable income.  Employers may report those contributions for informational purposes in box 14 on the form W2.  

Those contribution amounts in box 14 have no affect on your tax calculations.  Additionally, they are not an itemized deduction, federal or state; so no affect on SALT. As you surmise these are not taxes but insurance contributions. 

The box 14 category "OR Paid Leave" will work and so will the category "Other (not classified)" as neither of these add to any other tax forms in your returns.

Here is the OR reference. 

[user17702613684]

Oregon PFML and OR STT WH tax reported on W-2, what categories do they fit?

[MarilynG1]

Your payroll deductions for Oregon Paid Family Leave reported on Form W-2 in Box 14 don't affect your tax return.  Box 14 is informational, so you can choose the category "OR PFML' or similar.

Oregon State Tax withheld from your wages should be in Box 17, with taxable state wages in Box 16.  If you're seeing another notation in Box 14, choose the best category from the list, as this is again just informational.

Here's more info on Box 14.

@user17702613684 

[Holidays02-26-2026]

Thanks for the update on Paidleave of Oregon.

[kimballj84]

when I started doing my taxes TurboTax auto put other for my ORPL in box 14, but if I change it to "Oregon paid leave wages" or "Oregon paid leave withholdings/contributions" I owe $300 more on $1055 in taxes I paid into to the ORPL fund. Am I missing something? 

[RogerD1]

Are the OPRL box 14 amount the withholdings and/or contributions to the Oregon Paid Leave fund?  I made up a mock return using the box 14 amount of $1055 and category name of Oregon Paid Leave Withholding/Contributions and it had no effect on the Federal or Oregon refund/balance due amount.  Is the $300 more that you owe to Federal or Oregon?  And do you see that $300 increase after you enter the Box 14 amount?

If you'd like, I could take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number  (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)