Oregon Bulletin
January 1, 2011
Rule
Caption: Adds employer tax information to
department confidentiality rules.
Adm.
Order No.: ED 5-2010
Filed with Sec. of
State: 12-13-2010
Certified to be
Effective: 12-13-10
Notice Publication
Date: 11-1-2010
Rules Adopted: 471-010-0111
Subject: Adds a section to the department’s confidentiality
rules to cover disclosure f employer tax information.
Rules Coordinator: Courtney Brooks—(503) 947-1724
471-010-0111
Unemployment Insurance Tax
Disclosure
The department may disclose confidential Tax information
pertaining to an employing unit to employees of the employing unit or agents
thereof if both of the following conditions are met:
(1) The employing unit provides informed consent
authorizing the disclosure, or the employee or agent provides the department
with reasonable assurance that they are acting with the informed consent of the
employing unit, and.
(2) The identity of the person receiving the
information has been established with reasonable assurance.
Stat. Auth.: ORS 657.610
Stats. Implemented: ORS 657.665
Hist.: ED 5-2010, f. & cert.
ef. 12-13-10
Rule
Caption: Notification date requirement for
employer tax rate calculation – successor companies.
Adm.
Order No.: ED 6-2010
Filed with Sec. of
State: 12-13-2010
Certified to be
Effective: 12-13-10
Notice Publication
Date: 11-1-2010
Rules Amended: 471-031-0140
Subject: Streamlines tax rate calculation to use a single tax
year for 100% successor companies. This replaces the rule requiring successor
firms to split their calculation across two tax years, which created additional
administrative burden.
Rules Coordinator: Courtney Brooks—(503) 947-1724
471-031-0140
Transfer of Experience
Determination, Tax Rate, Consolidation
(1) For purposes of ORS 657.480, an employing unit is a
total successor to the experience of an employing enterprise when all or
substantially all of the components parts of the employing enterprise are
transferred to or otherwise acquired by the employing unit, including the
employees necessary to carry on day-to-day operations and essential business
functions in the same manner and for the same purposes as carried on prior to
the acquisition or transfer. If at the time of the purchase or transfer the
acquired employing entity is inactive, no transfer of experience shall be
allowed.
(2) An employer whose tax rate for a calendar year is
determined in accordance with either ORS 657.462 or 657.435 and which has
become final in accordance with ORS 657.485 shall pay taxes at the determined
rate on all wages paid by all employing units of the employer during the
calendar year for employment as defined in ORS chapter 657.
(3) In consolidation of existing employing units, the
tax rate experience will be consolidated for the next year’s rate determination
only if:
(a) The effective date of the consolidation is on or
before August 31 of the current year; and
(b) The Department is notified of the consolidation in
writing prior to November 15 of the same year.
(4) When an employing unit acquires the trade or
business of an employer that has received the penalty tax rate under ORS
657.480(3), the penalty tax rate will transfer.
(5) Any transfer or acquisition described in section
(1) must be reported to the Employment Department Tax Section within 60 days of
the date the transfer or acquisition becomes final.
Stat. Auth.: ORS 657
Stats. Implemented: ORS 657.435,
657.462, 657.480 & 657.485
Hist.: 1DE 153, f. 12-23-77, ef.
1-1-78; ED 2-1989, f. & cert. ef. 10-30-89; ED 15-2003, f. 12-12-03 cert.
ef. 12-14-03; ED 3-2006, f. 2-3-06, cert. ef. 2-5-06; ED 6-2010, f. & cert.
ef. 12-13-10
Rule
Caption: Notification date requirement for
employer tax rate calculation – partial successor companies.
Adm.
Order No.: ED 7-2010
Filed with Sec. of
State: 12-13-2010
Certified to be
Effective: 12-13-10
Notice Publication
Date: 11-1-2010
Rules Amended: 471-031-0141
Subject: Streamlines tax rate calculation to use a single tax
year for partial successor companies. This replaces the rule requiring
successor firms to split their calculation across two tax years, which created
additional administrative burden.
Rules Coordinator: Courtney Brooks—(503) 947-1724
471-031-0141
Partial Transfer of Experience
(1) Under ORS 657.480(1) A new or existing employing
unit is a partial successor to the experience of an employing enterprise when
an identifiable and segregable portion of the employing enterprise is
transferred to or otherwise acquired by the employing unit, including the
employees of that portion of the employing enterprise necessary to carry on
day-to-day operations and essential business functions in the same manner and
for the same purposes as carried on prior to the acquisition or transfer.
(2) For the period beginning with the date of the
transfer of the employment experience record through the end of the calendar
year in which the transfer occurs, the contribution rate of the predecessor
shall be the same as if there had been no transfer. Upon determination for
partial transfer the Director shall:
(a) Assign a contribution rate for a successor that is
a new employing unit, to be effective from the date of the transfer through the
end of the calendar year in which the transfer occurs; and
(b) Notify the successor in writing of the tax rate
assigned in subsection (2)(a) of this rule.
(3) In a partial consolidation, when both employing
units are existing employers, the tax rate experience shall be consolidated for
the next year’s rate determination only if the date of the transfer is on or
before August 31 of the current year.
(4) The percentage of employment experience
attributable to the transfer shall be calculated by dividing the number of
employees hired by the successor that are attributable to the transfer by the
total number of employees of the predecessor prior to the transfer. This
percentage, rounded to the nearest percentage number, shall then be applied to
the benefit charges and taxable payroll of the predecessor and the resulting
amounts shall comprise the employment experience to be transferred to the
successor’s account. The experience shall be added to the successor’s account
in the same quarter it is removed from the predecessor’s account. The percent
transferred plus the percent not transferred shall equal one hundred percent.
(5) The Director may use other reasonable means of
determining the percentage in section (4) that is attributable to the transfer.
(6) Benefits charged to the predecessor in the quarter
in which the transfer occurs and the next three quarters shall be split between
the predecessor and successor in accordance with the percentage established in
section (4) of this rule. For each quarter thereafter, none of the benefits
charged to the predecessor shall be transferred to the successor.
(7) For the limited purpose of calculating experience
rates under this rule, if the transfer occurs after the fifteenth day of the
middle month of a calendar quarter, wages paid by the predecessor during such
quarter shall be split between the predecessor and successor in accordance with
the percentage calculated in section (4) of this rule. If the transfer occurs
on or before the fifteenth day of the middle month of a calendar quarter, none
of the wages paid by the predecessor during such quarter shall be split.
(8) For each calendar year commencing on or after the
date of the transfer, the successor’s contribution rate shall be based on its
experience with taxable payroll and benefit charges, including the experience
of the acquired portion of business as determined in sections (2), (3), (4),
(5), (6) and (7).
(9) The successor, if not an employer at the time of
the transfer, shall become an employer as of the date of the transfer.
(10) In determining excess wages over the taxable wage
amount, a successor may use the wages paid by the predecessor prior to the
transfer.
(11) When the Employment Department determines that a
partial transfer has occurred, the Employment Department shall give the
successor notice of the determination and its effects to the partial successor.
The partial successor may request a hearing in accordance with the provisions
of ORS 657.683.
(12) Notwithstanding sections (2), (3), (4), (5), (6)
and (7), when an employing unit acquires a portion of the trade or business of
an employer that has received the penalty tax rate under ORS 657.480(3), a
proportionate share of the penalty tax rate will transfer and be added to its
calculated rate.
(13) Any transfer or acquisition described in section
(1) must be reported to the Employment Department Tax Section within 60 days of
the date the transfer or acquisition becomes final.
Stat. Auth.: ORS 657.610
Stats. Implemented: ORS 657.480
Hist.: ED 1-2000, f. 3-31-00,
cert. ef. 4-2-00; ED 15-2003, f. 12-12-03 cert. ef. 12-14-03; ED 3-2006, f.
2-3-06, cert. ef. 2-5-06; ED 7-2010, f. & cert. ef. 12-13-10
Rule
Caption: Clarifies requirements regarding ownership of equipment.
Adm. Order No.: ED 8-2010
Filed with Sec. of
State: 12-13-2010
Certified to be
Effective: 12-13-10
Notice Publication
Date: 11-1-2010
Rules Amended: 471-031-0200
Subject: Clarifies the phrase used in ORS 657.047(1)(b), “their
equipment”. This rule will clarify the distinction between bona fide lease
operators who own their own trucks, from those who have no ownership or right
to possession of the equipment that extends beyond the business relationship.
Rules Coordinator: Courtney Brooks—(503) 947-1724
471-031-0200
Ownership of Equipment
For purposes of ORS 657.047(1)(b), “their equipment”
consists of vehicles or equipment that meet all the following criteria:
(1) The vehicle or equipment is independently furnished
by the service-provider, neither leased nor purchased from the for-hire carrier
or from any entity affiliated with the for-hire carrier;
(2) Any lease of vehicle or equipment by
service-provider as lessee, or title in the vehicle or equipment held by the
service-provider is not conditioned upon any other agreement or contract,
including, but not limited to, the following examples:
(a) an operator agreement between the service-provider
and the for-hire carrier;
(b) a lease of the vehicle from the service-provider to
the for-hire carrier;
(c) any contract obligating the service-provider to use
the vehicle to provide services to the for-hire carrier.
Stat. Auth. ORS 657.610
Stas. Implemented: ORS 657.610
Hist.: ED 18-2008, f. 11-24-08,
cert. ef. 12-1-08; ED 8-2010, f. & cert. ef. 12-13-10
Rule
Caption: Repeal subjectivity provision for
Limited Liability Companies and Partnerships.
Adm.
Order No.: ED 9-2010
Filed with Sec. of
State: 12-13-2010
Certified to be
Effective: 12-13-10
Notice Publication
Date: 11-1-2010
Rules Repealed: 471-031-0225
Subject: Repeals subjectivity provisions for Limited Liability
Company members and Limited Liability Partnership partners.
Rules Coordinator: Courtney Brooks—(503) 947-1724
Rule
Caption: Repeals provisions of musicians’
exclusion.
Adm.
Order No.: ED 10-2010
Filed with Sec. of
State: 12-13-2010
Certified to be
Effective: 12-13-10
Notice Publication
Date: 11-1-2010
Rules Repealed: 471-031-0230
Subject: The statute granting an exclusion of musicians
operating under a contract was repealed in the 2009 Legislative Session. To be
consistent, we are repealing the accompanying rule.
Rules Coordinator: Courtney Brooks—(503) 947-1724
Rule
Caption: Defines “adequate consideration”
for volunteers.
Adm.
Order No.: ED 11-2010
Filed with Sec. of
State: 12-13-2010
Certified to be
Effective: 12-13-10
Notice Publication
Date: 11-1-2010
Rules Adopted: 471-031-0235
Subject: For the purposes of ORS 657.010, following discussion
in the 2009 Legislative Session, defines what constitutes adequate
consideration for volunteers.
Rules Coordinator: Courtney Brooks—(503) 947-1724
471-031-0235
Volunteer Consideration
For purposes of ORS 657.015:
(1) “Adequate consideration for the services performed”
with respect to volunteers is as defined in the Internal Revenue Code Title 26,
Subtitle C, Section 3306(c)(10)(A).
(2) Payments to volunteers that are reimbursements for
reasonable expenses incurred while volunteering, such as mileage or travel
costs, are not remuneration for service if they are paid under an accountable
plan. Payments under an accountable plan must meet all three of the following:
(a)The deductible expense was incurred while performing
services as a volunteer for a religious, charitable institution or governmental
entity. A reimbursement or advance must be for an income tax deductible expense
and must not be an amount that would have otherwise been paid to the volunteer.
(b) The payment must be substantiated within a
reasonable period of time.
(c) The volunteer must return any amounts in excess of
substantiated expenses within a reasonable period of time.
Stat. Auth. ORS 657.610
Stats. Implemented: ORS 657.610
Hist.: ED 11-2010, f. & cert.
ef. 12-13-10
Notes
1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2010.
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