Key figures
Oregon payables
2026, with sources
1099s go to iWire
Oregon is unusual in how it collects information returns. It is not part of the Combined Federal/State Filing Program, so federal filing does not satisfy it; every Form 1099 (including 1099-NEC) for a recipient with an Oregon address must be filed electronically with DOR through iWire, by January 31 for 1099-NEC. There is no minimum number of forms, and penalties for not filing electronically, or filing late or wrong, reach $25,000.
Example: a startup pays five freelancers in 2026, one of them in Bend. It files all five 1099-NECs with the IRS and the Bend contractor’s form with Oregon through iWire, and the Bend contractor was also reported to the Child Support Program within 20 days of being engaged.
Contractors and new-hire reporting
Oregon’s new-hire law (ORS 25.790) requires employers to report individuals engaged as independent contractors, not just employees, within 20 days. Classification for payroll tax purposes is decided by the Employment Department and DOR, and for workers’ compensation by DCBS; a worker treated as a contractor for one can be a subject worker for another.
No sales or use tax on purchases
With no sales tax, Oregon has no use tax on software or equipment a company buys. Purchases do count toward the CAT subtraction: 35% of the larger of cost inputs or labor costs reduces taxable commercial activity once the company is over $1 million of Oregon receipts.
Deadlines
- Jan 31Every 1099 for a recipient with an Oregon address, filed directly with DORForm 1099-NEC via iWire
- Within 20 daysReport individual independent contractors as well as employeesNew hire report
The federal baseline
This page covers what Oregon adds. The federal rules underneath it apply here too.
Common questions
Do we file 1099s with Oregon?
Yes, directly. Oregon does not take 1099s through the IRS Combined Federal/State Filing Program; every 1099 for a recipient with an Oregon address goes to DOR electronically through iWire by January 31, with no minimum number of forms. A company that only files with the IRS is out of compliance in Oregon.
Do we report contractors as new hires in Oregon?
Yes, if they are individuals. Oregon’s new-hire law covers independent contractors who are people (not companies) as well as employees, reported to the Child Support Program within 20 days of engaging them.
Payables next door
- CACalifornia payablesCalifornia classifies workers under the ABC test, wants contractors reported to EDD on Form DE 542, and requires 7% withholding on California-source payments to nonresidents over $1,500.
- IDIdaho payablesIdaho requires a copy of every 1099-NEC for services performed in Idaho by the end of February, and charges 6% use tax on untaxed goods but not on SaaS or downloaded software.
- NVNevada payablesNo state 1099s and no contractor withholding. What reaches payables in Nevada is use tax on tangible goods bought without Nevada tax.
- WAWashington payablesWashington has no state 1099 filing, but it taxes much of what startups buy — software, SaaS and since October 2025 IT services — and tests contractors twice, for UI and workers’ comp.
Founder guides on this
- PeopleContractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.
- ComplianceFirst-year compliance calendar for a Delaware C-corpDelaware franchise tax, 1099s, the federal return, payroll filings, state annual reports and sales tax: the deadlines a young C-corp misses most, by month.
More of the Oregon guide
- AccountingAccounting and state tax in OregonCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in OregonSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayrollPayroll taxes and employer rules in OregonWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in OregonRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in OregonCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.