Unemployment Insurance Law Summaries
Oregon, Unemployment Insurance Law Summaries
Oregon's unemployment insurance law is located in Title 51, Chapter 657, Oregon Revised Statutes, 1953 (1983 Replacement Part), as amended, Secs. 657.005 to 657.990; and in Chapter 471 of the Administrative Rules of the Employment, Secs. 471-10-005 to 472-42-005. The full text of the law is available in Unemployment Insurance Reports UI-OR ¶4001.
DEFINITIONS
“Employer” means any employing unit that employs one or more individuals in an employment subject to this chapter in each of 18 separate weeks during any calendar year, or in which the employing unit's total payroll during any calendar quarter amounts to $1,000 or more (Sec. 657.025(1), as amended by H. 2207, L. 2007).
“Employment” means service for an employer, including service in interstate commerce within or outside of the United States, performed for remuneration or under any contract of hire, written or oral, express or implied, with certain exceptions listed below.
Service performed by individual for remuneration is deemed “employment” unless and until it is shown that the individual is an independent contractor, as the term is defined in ORS 670.600 (Sec. 657.040(1), as amended by Ch. 533, L. 2005).
A finding that an individual performed services for an employing unit and earned less than the minimum amount necessary to qualify for benefits based on earnings from that employing unit may not be considered in determining whether the services were employment (Sec. 657.040(2), as amended by Ch. 533, L. 2005).
Where musicians perform services under a written contract providing that the leader of the group is deemed the responsible party of the group, the contract is taken as conclusive evidence that the leader is wholly responsible for all employment taxes.
Generally, employment subject to the federal law is automatically subject to the Oregon law.
“Employee” means any person, including aliens and minors, employed for remuneration or under any contract of hire, written or oral, express or implied, by a subject employer in subject employment. The term does not include a person who volunteers or donates services performed for no remuneration or without expectation or contemplation of remuneration as the adequate consideration for the services performed for a religious or charitable institution or a governmental entity (Sec. 657.015).
“Wages” means all remuneration for employment, including cash value of all remuneration paid in any medium other than cash. “Wages” includes sick pay to the same extent as under the FUTA, standby pay if the employee's time may be commanded by the employer, even if for a nonproductive service, 401(k) plan payments, and tips to the extent that they are taxable under the FUTA. The term “wages” does not include the following:
Remuneration in excess of 80% of average annual wage for second preceding calendar year, rounded to nearest multiple of $1,000 (this amount is $28,000 for 2006, and $29,000 for 2007) paid to employees in a calendar year. Remuneration paid by an Oregon employer for work performed in other states by employee who works both in Oregon and other states and remuneration paid by employer's predecessor may be included in computing limit, but only if the other state provides reciprocal treatment of wages earned in Oregon.
Other exclusions from wages are listed below.
If two or more related corporations concurrently employ the same individual and compensate him through a common paymaster that is one of such corporations, each corporation will be considered to have paid as remuneration to such individual only the amounts actually disbursed by it to such individual, and will not be considered to have paid amounts actually disbursed to the individual by another of such corporations.
COVERAGE
Service for an employer is generally covered, including service in interstate commerce within or outside of the United States, performed for remuneration or under any contract of hire, written or oral, express or implied, with certain exceptions listed below.
Service performed by individual for remuneration is deemed “employment” unless and until it is shown that such individual:
is an independent contractor;
has been and will continue to be free from control or direction over the performance of his services, both under a contract of service and in fact; and
is customarily engaged in an independently established business of the same nature as that involved in the contract of service.
A finding that an individual performed services for an employing unit and earned less than the minimum amount necessary to qualify for benefits based on earnings from that employing unit will not be considered in determining whether such services were employment.
Where musicians perform services under a written contract providing that the leader of the group is deemed the responsible party of the group, the contract is taken as conclusive evidence that the leader is wholly responsible for all employment taxes.
Generally, employment which is subject to the federal law is automatically subject to the Oregon law.
Agricultural and domestic employers.- Service performed in agricultural labor is covered if performed for an employer who employs 10 or more workers in such service in at least 20 weeks in the current or preceding calendar year or pays cash wages of at least $20,000 for such service in any quarter of the current or preceding calendar year. Service performed by an alien prior to 1/1/93 is excluded, if such alien was admitted to the U.S. to perform agricultural labor pursuant to Secs. 214(c) and 101(a)(15)(H) of the Immigration and Nationality Act. If agricultural labor is supplied by a crew leader, the employing unit for which the service is performed is the employer of the crew members unless the crew leader is registered under the Federal Migrant and Seasonal Agricultural Worker Protection Act, or substantially all of the crew members operate or maintain certain equipment that is provided by the crew leader. In either of these instances, the crew leader is the employer.
Domestic service.- Domestic service in a private home, local college club or local chapter of a college fraternity or sorority is covered if performed by an employing unit that paid $1,000 or more for such service in any quarter of the current or preceding calendar year.
Government and nonprofit employers.- Coverage is mandatory for the state, including state officers, boards, commissions, departments, institutions, branches, and agencies of the state government; for people's utility districts; for nonprofit organizations that are exempt from income tax; for political subdivisions of the state; and for Indian tribes. Other government services are not covered.
Nonprofit organizations and Indian tribes may use either the regular contributions method or the reimbursement method. People's utility districts and political subdivisions also can use either reimbursement financing or pay regular taxes. The state is required to use the reimbursement method. Employers using the reimbursement financing make payments equal to the full amount of regular plus 50% (100% for governmental entities) of the extended benefits paid to claimants. Nonprofit organizations that use reimbursement financing must execute and file a surety bond or deposit money. A bond or deposit may not be required from an institution of higher education.
An employer who has canceled its election to make reimbursement payments pays at a rate no lower than the rate assigned to new employers for the year until account has been chargeable for 12 consecutive months preceding the computation date.
EXCEPTIONS
Wages.- The term “wages” does not include the following:
Remuneration in excess of 80% of average annual wage for second preceding calendar year, rounded to nearest multiple of $1,000 (this amount is $28,000 for 2006, and $29,000 for 2007) paid to employees in a calendar year. Remuneration paid by an Oregon employer for work performed in other states by employee who works both in Oregon and other states and remuneration paid by employer's predecessor may be included in computing limit, but only if the other state provides reciprocal treatment of wages earned in Oregon.
Payments to individual or his or her dependent under plan or system established on account of retirement, accident disability, medical and hospitalization expenses, or death.
Payments for sickness or accident disability made under a workers' compensation law.
Certain other retirement payments.
Payments for sickness or accident disability made over six months after separation.
Payments from, to, or under trust or annuity plan exempt from federal income tax.
Public assistance provided in cash or in kind in consequence of participation in a community work and training program.
If two or more related corporations concurrently employ the same individual and compensate him or her through a common paymaster that is one of such corporations, each corporation will be considered to have paid as remuneration to such individual only the amounts actually disbursed by it to such individual, and will not be considered to have paid amounts actually disbursed to the individual by another of such corporations.
Employment.- The term “employment” does not include the following:
Service not in the course of employer's trade or business, or any labor that does not promote or advance trade or business of employer, unless service is performed in each of 18 weeks or total payroll is $1,000 or more during quarter (Sec. 657.050(1)(c), as amended by H. 2207, L. 2007). The law also provides that temporary labor in the usual course of an employer's trade or business shall not be deemed to be casual labor.
Caddies performing services at a golf course in an established program for the training and supervision of caddies under the direction of a person who is an employee of the golf course; this exclusion does not apply to services performed for a nonprofit employing unit, the state, or a political subdivision of the state.
Child care service provided through the Adult and Family Services Division to an individual who is the recipient of public assistance, unless the service is performed for a nonprofit employing unit for the state or a political subdivision of the state.
Fishermen performing service on a boat engaged in catching fish under an arrangement with the boat owner or operator under which the individual receives no cash remuneration other than a share of the catch; the cash remuneration does not exceed $100; the individual receives a share of the boat's catch or a share of the proceeds from the sale of the catch; and the amount of the individual's share depends on the amount of the catch, but only if the operating crew of the boat is normally made up of fewer than 10 individuals.
Insurance agents or solicitors on commission basis.
Maritime service as an officer or crew member of a non-American vessel; or service by a non-U.S. citizen on an American vessel under a contract not entered into within the U.S. when the vessel does not touch a port of the U.S.
Newspaper advertising salespersons.
Newspaper and shopping news carriers.
Petroleum products wholesale distributors whose remuneration primarily consists of commissions or of difference between purchase price and sale price of products.
Railroad employees covered by Railroad Unemployment Insurance Act.
Real estate brokers, salespersons, or agents on commission basis.
Relatives, i.e., service performed in employ of son, daughter or spouse, and service performed by child under 18 in employ of parent.
Securities salespersons or agents on commission basis.
Service for a school, college or university by a student in regular attendance, or by the spouse of that student if the spouse's employment is under a program of assistance to the student.
Service for a hospital by a patient of the hospital.
Service by a student nurse for a hospital or a nurses' training school.
Service by a student enrolled at a nonprofit or public educational institution in a full-time work-study program. Exemption not applicable to program established for an employer or group of employers.
Service by a full-time student for an organized camp if the camp did not operate for more than seven months in either the current or preceding calendar year or had average gross receipts for any six months in the preceding calendar year that were not more than 33
% of its receipts for the other six months and the student performed services for the camp for less than 13 calendar weeks.
Service (unpaid) under supervision or control provided by any county or city pursuant to a community work and training program.
Service as a performer, director, designer, musician, technical crew member, house or business person, contestant, beauty queen or member of a court for or on behalf of a nonprofit organization in connection with a symphony, opera, play, pageant, festival, rodeo or similar event, when the remuneration consists solely of a gratuity, prize, scholarship or reimbursement of expense.
Solicitors of home-improvement contracts or consumer goods in the home on a commission or profit-sharing basis.
Transportation by motor vehicle of logs, poles, and piling by any person who both furnishes and maintains the vehicle used. Service performed in the operation of such a vehicle is deemed to be performed for the person furnishing and maintaining the vehicle.
Transportation by motor vehicle for a certified common carrier by any person who leases equipment to a certified common carrier and personally operates, furnishes and maintains the equipment and provides service for it.
Food product demonstrators who, on a temporary, part-time basis, demonstrate or give away samples of food products as part of an advertising or sales promotion for the product in stores that sell food at retail and who are not otherwise employed by the manufacturer, distributor or retailer.
Service performed as foster care parents certified by the Children's Services Division or approved by a licensed child caring facility.
Agricultural and domestic employers.- Service performed by an alien prior to 1/1/93 is excluded, if such alien was admitted to the U.S. to perform agricultural labor pursuant to Secs. 214(c) and 101(a)(15)(H) of the Immigration and Nationality Act.
Government and nonprofit employers.- Coverage is mandatory for the state, including state officers, boards, commissions, departments, institutions, branches, and agencies of the state government; for people's utility districts; for nonprofit organizations which are exempt from income tax; for political subdivisions of the state; and for Indian tribes. Other government services are not covered.
Service for the state or a political subdivision does not include the following:
Elected officials (coverage may not be elected).
Temporary employees serving in case of fire, storm, earthquake, flood or similar emergency.
Members of a legislative body or the judiciary.
Inmates of a custodial or penal institution.
Members of the Oregon Army National Guard or Oregon Air National Guard.
Individuals in certain major nontenured policymaking or advisory positions.
The following services for a nonprofit organization are not covered:
Church or convention or association of churches. NOTE: 1989 amendments provide that, operative when amendments to the FUTA permit the states to exempt all religious organizations without jeopardizing the right of employers to full tax credit under the FUTA, the Oregon law will exempt all organizations operated primarily for religious purposes, whether or not the organization is operated, supervised, controlled or principally supported by a church or convention or association of churches.
Religious duties of a minister or member of a religious order.
Patients performing services in a rehabilitation facility or sheltered workshop.
PROCEDURES
Base year.- First four of the last five completed calendar quarters preceding benefit year. If an individual has been incapable of working during the greater part of a base-period quarter, his or her base period may be extended by one quarter, but no extension of a base period may exceed four quarters. If an individual has had a period of temporary total disability caused by illness or injury and has received worker's compensation for a period of temporary total disability during the greater part of any calendar quarter, his or her base year will be extended as many quarters as necessary to establish a valid claim, up to a maximum of four quarters.
Benefit year.- 52-week period beginning with week in which claim is first filed, except that where the filing of a valid initial claim would result in overlapping any quarter of the base year of a previously filed initial valid claim, the benefit year is 53 weeks.
Weekly benefit amount.- Maximum and minimum weekly benefit amounts are as follows: minimum is 15% of state average weekly wage; maximum is 64% of state average weekly wage beginning with the week which includes each July 4th. Minimum and maximum effective with weeks beginning on and after 7/1/2008 are $113 and $482, respectively. The weekly benefit amount is reduced by the greater of 10 x minimum hourly wage or 1/3 of the weekly benefit amount.
Maximum total benefits.- Lesser of 26 times weekly benefit amount or
of base year wages paid, plus, during certain periods of high unemployment, payment of extended benefits at claimant's weekly benefit rate.
A claimant may receive a shared work weekly benefit amount equal to the percentage of reduction (not less than 20% or more than 40%) in his or her wages resulting from reduced hours of work multiplied by his or her regular weekly benefit amount, for up to 26 weeks under a single plan, if his or her employer has elected to participate in a shared work plan.
A program of supplemental unemployment benefits also is in effect for dislocated workers who are eligible for benefits.
Benefit eligibility: Requirements-
worked in subject employment in the base year with total base year wages of $1,000 or more and have total base year wages equal to at least 1.5 times high-quarter wages, and have earned wages equal to six times the weekly benefit amount for service performed after the beginning of a preceding benefit year if benefits were paid to the claimant in that preceding benefit year;
able and available for work and actively seeking suitable work;
one-week waiting period; and
participation in reemployment assistance services if so required.
Employment in a community work and training program does not affect availability. Also, notwithstanding availability requirement and disqualification for failure to accept suitable work, individuals engaged in approved vocational training programs or in programs to attain basic educational skills are not ineligible for benefits or waiting-week credit because of enrollment and attendance in such programs. However, receipt of certain allowances and payments by such individuals makes them ineligible. An individual who leaves the normal market area for the major part of a week is unavailable; the presumption of unavailability may be overcome if the individual shows that he or she has conducted a bona fide search for work and has been reasonably accessible to suitable work in the labor market area where he or she spent the major portion of the week in question.
Benefits may not be paid to instructors, researchers, or principal administrators for a school, college, university, or other educational institution during school vacation periods or paid sabbatical leaves based on service with such school, college, or university.
Individuals who have performed nonprofessional services for an educational institution may not be paid benefits during periods between two academic years or terms if there is reasonable assurance that the individual will perform services in the second year or term. Retroactive payments of benefits may be claimed for such periods if no opportunity to work is given in the second year or term.
Benefits are not payable to an alien unless he or she has been lawfully admitted to the United States for permanent residence or is otherwise permanently residing in the United States under color of law.
Benefits are not payable to a professional athlete for periods between successive sport seasons if there is reasonable assurance that the individual will perform services in both seasons.
Disqualifications: Period-
Discharge or suspension, for misconduct connected with work, voluntary leaving of work without good cause, or failure without good cause to apply for or accept available suitable work-until claimant has earned remuneration equal to at least four times his or her weekly benefit amount in service in employment or service as an employee of an employing unit in this or any other state or Canada or as an employee of the federal government.
An individual disqualified under the above paragraph will also have his or her maximum total benefit amount reduced by eight times his or her weekly benefit amount, but not less than the individual's weekly benefit amount unless he or she has previously received benefits during his or her benefit year.
Leaving without good cause prior to the impending known date of a voluntary leaving with good cause or a discharge other than for misconduct-period including the week in which the voluntary leaving occurred through the week prior to the week in which he or she would have left with good cause or been discharged under nondisqualifying circumstances.
No disqualification if individual ceases work or fails to accept work when a collective bargaining agreement between his or her bargaining unit and employer is in effect and the employer unilaterally modifies the amount of wages payable under the agreement, in breach of the agreement.
No disqualification if claimant ceases to work or fails to accept work when a collective bargaining agreement between his or her bargaining unit and the employer is in effect and the employer unilaterally modifies the amount of wages payable under the agreement in breach of the agreement.
No disqualification if the individual works under a collective bargaining agreement, elects to be laid off when the employer has decided to lay off employees, and is placed on the referral list under the collective bargaining agreement.
Labor dispute (excluding lockout situation, as described by law)-during progress of the dispute.
Receipt of vacation or holiday pay-benefits reduced by amount of vacation or holiday pay. However, if payment for the holiday or vacation is delayed more than 45 days following the end of the week in which the holiday or vacation falls, previously reduced benefits will be restored.
Receipt of pension-reduction of weekly benefit amount by a governmental or other pension, retirement or retired pay, annuity or other similar periodic payment based on the claimant's previous work, but only if the pension was maintained or contributed to by a base period employer. No reduction if the individual is receiving social security benefits.
Receipt of unemployment benefits under other state or federal law-period for which payments are made.
Misrepresentation to obtain benefits-not more than 26 weeks.
Felony or theft in connection with the work-all benefit rights canceled.
WHAT THE EMPLOYER MUST DO
Pay the standard rate.- New employers pay an annually assigned rate, depending on the schedule of rates in effect for the year.
If Schedule I is in effect, new employers pay 2.7%;
Schedule II requires a 2.8% rate;
Schedule III requires a 3.0% rate;
Schedule IV requires a 3.1% rate;
Schedule V requires a 3.2% rate;
Schedule VI requires a 3.3% rate;
Schedule VII requires a 3.4% rate; and
Schedule VIII requires a 3.5% rate for new employers.
For 2009, the new employer's rate is 2.4%.
Experience rates.- Employer may qualify for an experience rate for a calendar year with a minimum of four consecutive calendar quarters of coverage ending on June 30 (the computation date) preceding the year for which rates are being set. When it has acquired the required experience, however, an employer's rate is based on the 12-quarter period of coverage preceding the computation date. The employer's rate is based on its benefit ratio, which is obtained by dividing its benefit charges by its taxable payroll for the same period (four or more, up to 12, calendar quarters). Employers are ranked according to their benefit ratios, and grouped according to cumulative taxable payroll totals.
An employer who fails to pay all contributions and file all reports due by September 1 is required to pay a penalty equal to 1.0% of its payroll in the preceding calendar year.
Generally, there are eight schedules in the law, the most favorable of which ranges from 0.5% to 5.4%, and the least favorable of which ranges from 2.2% to 5.4%.
Rates for 2009 may be determined from the following Schedule III:
Benefit Ratios From:
|
Tax Rates
|
|---|
.000000 through .000009
|
0.9%
|
.000010 through .001149
|
1.0%
|
.001150 through .002217
|
1.1%
|
.002218 through .002802
|
1.2%
|
.002803 through .003321
|
1.3%
|
.003322 through .003855
|
1.4%
|
.003856 through .004505
|
1.5%
|
.004506 through .005000
|
1.6%
|
.005001 through .005418
|
1.7%
|
.005419 through .006186
|
1.8%
|
.006187 through .006945
|
1.9%
|
.006946 through .007636
|
2.0%
|
.007637 through .008691
|
2.1%
|
.008692 through .009548
|
2.2%
|
.009549 through .011094
|
2.3%
|
.011095 through .012848
|
2.4%
|
.012849 through .014751
|
2.5%
|
.014752 through .017384
|
2.6%
|
.017385 through .020454
|
2.7%
|
.020455 through .023962
|
2.8%
|
.023963 through .028402
|
2.9%
|
.028403 through .035518
|
3.0%
|
.035519 through .041631
|
3.1%
|
.041632 through .054025
|
3.2%
|
.054026 through .066764
|
3.4%
|
.066765 through .081148
|
3.6%
|
.081149 through .095273
|
3.8%
|
.095274 through .107120
|
4.0%
|
.107121 through .115084
|
4.2%
|
.115085 through .124070
|
4.4%
|
.125071 through .136622
|
4.6%
|
.136623 through .157780
|
4.8%
|
.157781 through .181552
|
5.0%
|
.181553 through .221807
|
5.2%
|
.221808 and over
|
5.4%
|
Any employer participating in a shared work program must pay into the fund an amount equivalent to all shared work benefits paid to its employees under the plan during any rate period for which the employer's benefit ratio, expressed as a percentage rounded to the nearest 0.1%, is in excess of the employer's tax rate for that rating period.
A federal advance interest repayment tax will be assessed if interest accrues on federal advances to Oregon.
For the first quarter of 1989 and the first quarter of each odd-numbered year thereafter, the tax rate paid by each employer other than those paying 5.4% will be reduced by .03% and a .03% tax assessment will be paid into the Wage Security Fund.
DEADLINES
Tax.- Oregon Quarterly Tax Report, Form OQ, is due quarterly on or before the last day of month following end of calendar quarter. If the due date is on a weekend or holiday, the report is due the next working day. Available filing methods include magnetic media and electronic filing via telephone, Internet or e-mail. Combined report must be accompanied by payment of any tax due and a combined tax payment coupon, Form OTC (when payment is by electronic funds transfer, Form OTC is not required). Oregon does not recognize common pay agent reporting.
Wage.- Employee detail is reported on Form 132, which is filed with Form OQ, as noted above.
ENFORCEMENT
The Oregon Employment Department Law is administered by the Employment Department.
The Assistant Director may require, for the protection of the Fund, that an employer deposit with it a sum covering contributions due for three quarters, or the Assistant Director may require a bond or an irrevocable letter of credit in lieu of such deposit. The Assistant Director may apply these funds to any delinquency or indebtedness which the employer may acquire under the law. Also effective on such date, a special “employment tax guarantee fund” is created for deposit of sums or posting of bonds or letter of credit. Such deposits, bonds, or letter of credit will have priority over any other liens or claims and be exempt from any process, attachment, garnishment or execution whatsoever.
Should the employer fail to make the deposit, post bond or letter of credit, he may be enjoined by a circuit court from employing new personnel or continuing in business.
If an employer defaults in any payments required to be made by him to the unemployment compensation trust fund, the contributions due, together with interest and penalties, will be collected by the Assistant Director in a civil action against the employer in the name of the Assistant Director. The amount of contributions collected will be paid into the unemployment compensation trust fund. The amount of interest, penalties and fines collected will be paid into the Employment Division special administrative fund. Civil actions brought by the Assistant Director are entitled to preference on the calendar of the court.
Oregon courts shall recognize and enforce employer liability for contributions imposed by other states, on the condition that the other states extend a like comity to Oregon.
No action or suit will be commenced to collect any amount of contributions, interest or penalties due under assessment unless such action or suit is commenced within three years from the date of the assessment, except in the case of fraud or intent to evade any provision of this chapter or authorized regulations, where an action or suit may be commenced at any time.
If the cause of action or suit accrues or has accrued against any employer who is out of the state or concealed therein, such action or suit may be commenced within three years after the return of such employer into the state, or the time of his concealment has ended.
Records.- The Assistant Director may require from any employing unit such reports on the wages, hours, employment, unemployment and related matters concerning its employees as the Assistant Director deems necessary to the effective administration of the law, and every employing unit shall fully, correctly and promptly furnish the Assistant Director all information required by it to carry out the purposes and provisions of the law.
Information secured under the law is to be held confidential and is not to be open to the public except to public employees in the performance of their duties and to benefit claimants when necessary for the proper presentation of their claims. Information may be disclosed to the Secretary of Labor and other federal agencies.
WHO TO CONTACT
The Oregon Employment Department Law is administered by the Employment Department, 875 Union St., N.E., Salem, Oregon 97311; Telephone (503) 378-3524 and (800) 624-7908 (in Oregon).
RECORDKEEPING
Every employing unit is required to keep for three calendar years true and accurate records of all persons employed by it, and such records of hours worked, wages paid and other statistics as prescribed by the Assistant Director. Such records must be open to inspection by the Assistant Director or his authorized representative at any reasonable time.
POSTING
An employer subject to the law must post, in a place conspicuous to his employees, a notice provided by the Employment Division stating that the employer is subject to the Employment Division Law. The employer must also post printed statements that include notice to the workers in plain language of the potential disqualification from receipt of benefits for voluntarily leaving work or being discharged.
PENALTIES
Interest and penalties.- Interest at the rate of 1
% per month or fraction thereof shall accrue on all unpaid contributions and reimbursement payments from the date such payments were due until paid. The Assistant Director may waive, reduce, or compromise any tax balance of $10 or less, retain any tax overpayment of $10 or less or waive, reduce or compromise any part or all of the tax interest and tax penalties when in his judgment such action serves the best interests of the Division. A record, which will be retained for seven years, will be made showing the reasons for such waiver, reduction or compromise.
Failure of an employer to make payment of any contributions or reimbursement payments within 10 days after a written demand for payment by the Assistant Director will subject such employer to a penalty of 10% of the amount of such contributions or reimbursement payments then due. If such failure is due to fraud, a 50% penalty is assessed.
An employer who, without good cause, fails to file a required quarterly tax report or quarterly detail of employee's wages and hours of work by the tenth day of the second month following the end of the calendar quarter will receive a written notice warning him that a subsequent failure to file a required report could result in the imposition of a late filing penalty.
If additional employer reports are received late without good cause within three years of the date of the warning, the employer will be assessed a late filing fee equal to .0002 of the taxable wage base in effect for the year against which the penalty is being assessed for each employee listed for each quarter on the late reports. However, the minimum penalty for any quarter may not be less than .0025 or more than .05 of the effective taxable wage base. The penalty per employee is rounded to the nearest dollar, with the minimum penalty being rounded to the nearest five dollar interval and the maximum penalty being rounded to the nearest $100 interval. An employer who has no payroll during a calendar quarter will not be assessed such a penalty for the first quarter in which his report is filed late. A $5 penalty will be assessed when reports continue to be filed late.
Where any person willfully makes a false statement for the purpose of securing a lower contribution or payment in lieu of contribution, or where any employer or agent willfully refuses or fails to pay a contribution or payment in lieu of contribution, furnish any report, audit or information duly required by the Assistant Director or refuses to allow the Assistant Director or his or her authorized representative to inspect its payroll or other records or documents relative to the enforcement of the law, or shall make a deduction from the wages or salary of an employee in order to pay a part of the employer's contribution, or if any person violates any other provision of the law, then such violator is deemed guilty of a misdemeanor, and upon conviction thereof will be punished by a fine of not less than $100 nor more than $500, or by imprisonment for not more than 90 days, or both. In case the violator is a corporation, then the president, secretary, treasurer, or officers exercising corresponding functions are subject to the aforesaid penalties, provided that such officer had, or should have had, knowledge of the violation.
Any person who willfully violates any provision of the Act, or any order, rule, or regulation thereunder, for which no penalty is otherwise prescribed, shall be subject to a fine of not less than $20 nor more than $200, or by imprisonment for not longer than 60 days, or both.
If any part of a deficiency is due to fraud with intent to avoid payment of contributions to the unemployment compensation trust fund, then 50% of the total amount of the deficiency, in addition to the deficiency, will be assessed, collected and paid into the Employment Division special administrative fund.
If the Assistant Director finds that the total interest collectible on any delinquent account is in excess of 25% of the principal and that an employer or former employer, who no longer conducts an active business, has insufficient net assets to pay the full amount of all taxes, interest or penalties due, the Assistant Director may agree to accept any amount he finds reasonable under the circumstances, as consideration for the settlement of the full amount of taxes, interest or penalties due. The amount of any settlement thus reached will be first credited to the contributions due from the employer until the principal amount of contributions due is satisfied, and will be deposited in the unemployment compensation trust fund.
If the Assistant Director has reason to believe that an employer is insolvent, or that the collection of any contributions will be jeopardized by delaying collection, he or she may make an immediate assessment of the estimated amount of accrued contributions, noting upon the assessment that it is a jeopardy assessment levied under the law. He or she may proceed to enforce collection immediately, but interest does not begin to accrue upon the contributions until the due date nor will court costs be taxed against such employer on any action to enforce collection commenced prior to the due date. The Assistant Director may, in levying the assessment, demand a bond or deposit of such security as he or she deems necessary to insure collection of the amount of such assessment. Written notice of the assessment is mailed to the employer's last-known address.
An application for a hearing to review a jeopardy assessment which was accompanied by a demand for a bond or deposit is not valid unless the bond or deposit is filed with the application in a form acceptable to the Assistant Director.
If total interest on delinquent contributions is in excess of 25% of the principal, and the employer or former employer, who no longer conducts an active business, has insufficient net assets to pay the full amount of all taxes, interest, or penalties that may be due, and such employer or former employer can pay some but not all of such amount, the Assistant Director may agree to accept any amount he finds reasonable under the circumstances as consideration for the settlement of the full amounts due.
Except in the case of failure without good cause to file a return, fraud or intent to evade any provision of the law or authorized regulations, every notice of assessment is given within four years after the last day of the month following the close of the calendar quarter during which the contribution liability included in the assessment accrued. An employer may waive this limitation period or may consent to its extension.
In case of failure without good cause to file a return, every notice of assessment is given within eight years after the last day of the month following the close of the calendar quarter during which the contribution liability included in the assessment accrued. An employer may waive this limitation period or may consent to its extension.
In addition, in any case in which the Assistant Director may bring a civil action for the collection of taxes, interest and penalties, he may instead:
Assess a collection charge of $5 if the sum of the tax, penalty and interest then due exceeds $10;
Issue a warrant commanding the sheriff of any county to levy upon and sell the real and personal property of the employer for the payment of the amount of tax, penalties and interest due.
The Assistant Director may determine that the amount of tax, interest and penalty due and unpaid on a delinquent account is uncollectible if:
the delinquent amount has been reduced to the status of a lien or judgment and such lien or judgment has expired; or
the taxpayer no longer has an active business in Oregon and has not had an active business within the three most recently completed calendar years, and there is little or no likelihood of recovering the amount due.
In determining that an account is uncollectible, the Assistant Director must consider, among other factors;
the administrative costs of continued collection efforts;
the accessibility of the taxpayer for effective collection actions; and
the taxpayer's financial condition and ability to pay the amount due, both current and projected.
Liens.- Contributions imposed by the law are a first and prior lien upon the real and personal property of any employer subject to the law except as to the lien of other taxes and labor liens.
Bankruptcy.- All contributions, interest charges, penalties or amounts due the unemployment compensation trust fund from any employer, and all judgments recovered by the Assistant Director against any employer under the provisions of the law, have the same priority as taxes and are deemed preferred to all general claims in all bankruptcy proceedings, trustee proceedings, proceedings for the administration of estates, receiverships and assignments for the benefit of creditors involving the employer liable therefor or the property of such employer.
<p>Bankruptcy.— All contributions, interest charges, penalties or amounts due the unemployment compensation trust fund from any employer, and all judgments recover</p>