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Overview Section
This article explains Oregon’s new pay statement explainer notice requirement, including what information employers must provide to help employees understand their earnings and deductions.
Pay Notice Requirements
Oregon employers must provide employees with a written explainer notice that helps them understand the earnings and deductions shown on their pay statements. The notice must include general information about the employer’s pay period, all types of pay rates an employee may be eligible for, all benefit contributions and deductions, the purpose of each deduction, and any payroll codes or abbreviations used, along with a clear explanation of what each code means.
When do employers need to provide this notice to employees?
Employers must provide the explainer notice at the time of hire for all new employees. They also must review and update the notice each year by January 1 for all employees.
What are the steps to complete this notice?
The Oregon Bureau of Labor and Industries (BOLI) has created a template explainer notice that employers may use to meet this requirement.
To support completion of this notice under the “Understanding Your Pay Statement” section, Justworks offers a list of pay, deduction, and benefit contribution codes. Employers can satisfy requirements by using the state’s template explainer notice alongside Justworks’ code explanations.
Note: The tables below include standard codes administered by Justworks and are not exhaustive. This information may be updated as changes become available, with new additions and update dates reflected in the changelog at the bottom of this article. Employers should review their Oregon paystubs and add any custom codes specific to their business as needed to ensure their explainer notice remains accurate.
Types of Pay
| Pay Code | Description |
| Salary | Fixed regular pay amount not based on hours worked. |
| Salary Off Cycle | Salary paid outside of the regular payroll cycle (e.g., corrections, special payouts). |
| Wages (Hourly Wages) | Pay based on the number of hours worked and the employee’s hourly rate. |
| Reimbursable Expense | Repayment for approved business expenses incurred by the worker; generally non-taxable. |
| Supplemental Pay | Additional compensation paid outside of regular wages or salary (e.g., bonuses, commissions). |
| Misc Non-Taxable | Non-taxable payments that do not fit standard earning categories. |
| Paycheck Tips | Tips paid through payroll and included on the employee’s paycheck. |
| Stock Options | Compensation related to employee stock option grants or exercises. |
| Fringe Benefits | Taxable non-cash benefits provided to an employee (e.g., personal use of company property). |
| Perk Comp (Paid in Kind) | Taxable perks provided in non-cash form. |
| Peloton Perk (Paid in Kind) | Employer-provided Peloton or similar wellness perk treated as taxable compensation. |
| Life Insurance (Paid in Kind) | Employer-paid life insurance premiums treated as taxable income when applicable. |
| ADD Salary | Additional salary payment beyond base salary (e.g., adjustments or supplemental salary). |
| Paid Sick Leave | Employer-provided paid sick time in accordance with company policy or state law. |
| Exercised NSOs | Income recognized when non-statutory stock options are exercised. |
| Vested RSUs | Taxable income recognized when restricted stock units vest. |
| Bonus | Additional compensation that may be discretionary or performance-based. |
| Commission | Variable pay based on sales or performance metrics. |
| Retroactive Pay | Back pay for prior periods due to corrections or delayed rate changes. |
| Severance | Pay provided after employment separation, typically based on tenure or agreement. |
| Taxable Moving Expense | Employer-paid relocation expenses treated as taxable income. |
| Other Supplemental Pay | Supplemental compensation not otherwise categorized. |
Possible Benefit Contributions
| Pay Code | Description |
| HSA | Employee contribution to a Health Savings Account (HSA) |
| Oregon State Paid Family Leave | Paid Leave Oregon contribution shared between the employee and employer |
| FSA | Recurring employee contribution to a Health Flexible Spending Account (FSA). |
| DCFSA | Employee contribution to a Dependent Care Flexible Spending Account (DCFSA). |
| 401(k) deferral | An employee contribution to a 401(k) retirement plan that is withheld from pay and deposited into the employee’s retirement account. |
| Life Insurance | Employee contribution to life insurance premiums |
Possible Tax Deductions
| Paystub Code | Description |
| Federal Income Tax | Federal income tax withheld based on the employee’s Form W-4 |
| Social Security | Employee portion of Social Security payroll tax |
| Medicare | Employee portion of Medicare payroll tax |
| Additional Medicare Tax | Additional Medicare tax for employees earning above IRS thresholds |
| Exercised NSOs | Taxes withheld on the income recognized when stock options are exercised |
| Vested RSUs | Taxes are withheld on the income recognized when restricted stock units vest. |
| Oregon Income Tax | Oregon state income tax withholding |
| Oregon Statewide Transit Tax | Oregon statewide transit tax withheld from wages |
| Multnomah County Preschool for All (PFA) Tax | Multnomah County Preschool for All (PFA) personal income tax withholding |
| City of Eugene Community Safety Tax | Employee portion of the City of Eugene Community Safety Payroll Tax |
| Oregon Metro Supportive Housing Services Tax | Metro Supportive Housing Services (SHS) personal income tax withholding |
| Oregon Workers’ Compensation Tax | Employee portion of the Oregon Workers’ Benefit Fund (WBF) assessment |
Possible Benefit Deductions
| Paystub Code | Description |
| Medical | Pre-tax medical insurance premium deduction under a Section 125 plan. |
| Dental | Pre-tax dental insurance premium deduction under a Section 125 plan. |
| Vision | Pre-tax vision insurance premium deduction under a Section 125 plan. |
| Voluntary STD Insurance | Recurring short term disability insurance premium deduction |
| Voluntary LTD Insurance | Recurring long term disability insurance premium deduction |
| Supplemental Life Insurance | A payroll deduction reflecting the employee’s taxable portion of employer-paid life insurance coverage, when applicable. |
| Perk Comp | Amount deducted from employee’s pay for taxable non-cash perks |
| Peloton | A payroll deduction for employee participation in the Pelton platform |
How can I provide this notice to employees?
Employers may provide the notice electronically, in paper form, by posting it in a visible workplace location, or by including it in the employee handbook as long as it is easily accessible to employees. When distributing electronically, employers can share the notice with employees through the Document Center.
Where can I find more information?
Oregon Bureau of Labor & Industries (BOLI): Paycheck Deductions/Itemized Pay Statement Requirements
Mineral: Oregon Rolls Out New Wage Notice*
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for accounting, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.