Oregon Statutes 657.515 – Delinquent taxes; interest; civil penalties; collection by civil action; settlement
(1) If an employer defaults with respect to any payment required to be made by the employer to the Unemployment Compensation Trust Fund, the taxes at any time due, together with interest thereon and penalties, shall be collected by the Director of the Employment Department in a civil action against such employer brought in the name of the director and judgment rendered thereon shall bear interest at the rate provided in subsection (2) of this section. Such employer’s compliance with this chapter, requiring payments to be made to the Unemployment Compensation Trust Fund, shall date from the time said money was collected. The amount of taxes collected shall be paid into the Unemployment Compensation Trust Fund. The amount of interest and penalties collected pursuant to this subsection shall be paid to the Employment Department Special Administrative Fund in accordance with the provisions of ORS § 657.830 (3).
Terms Used In Oregon Statutes 657.515
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- employer: means any employing unit which 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. See Oregon Statutes 657.025
- employment: includes service that is:
(a) Subject to the tax imposed by the Federal Unemployment Tax Act; or
(b) Required to be covered under this chapter as a condition for employers to receive a full tax credit against the tax imposed by the Federal Unemployment Tax Act. See Oregon Statutes 657.030
- Fraud: Intentional deception resulting in injury to another.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Taxes: means the money payments to the Unemployment Compensation Trust Fund required, or voluntary payments permitted, by this chapter. See Oregon Statutes 657.010
(2) Interest upon the amount due from an employer shall be paid and shall be collected, at the same time payment of taxes is required to be made by such employer to the Unemployment Compensation Trust Fund at the rate of one and one-half percent per month from the date prescribed for the payment to the Unemployment Compensation Trust Fund. In computing such interest, a fraction of a month shall be counted as a full month.
(3) If any employer fails to make payment of taxes required by this chapter at the time prescribed by the director for the payment thereof, such employer shall be in default.
(4) If any employer who is in default with respect to payment of any taxes fails to make payment thereof within 10 days after written demand therefor has been made by the director, such employer shall be subject, in the discretion of the director, to a penalty of 10 percent of the amount of such taxes. A demand for payment shall be deemed to have been made when deposited in the mail addressed to such employer at the employer’s last-known address as shown by the records of the director.
(5) If any part of any deficiency is due to fraud with intent to avoid payment of taxes to the Unemployment Compensation Trust Fund, then 50 percent of the total amount of the deficiency, in addition to such deficiency, shall be assessed, collected and paid in the same manner as if it were a deficiency and shall be paid into the Employment Department Special Administrative Fund pursuant to this section and ORS § 657.822.
(6) Civil actions brought in the name of the director under this section to collect taxes, interest or penalties from an employer, shall be entitled to preference upon the calendar over all civil cases which involve only private parties.
(7) Notwithstanding the provisions of this section, if the director finds that the total interest collectible on any delinquent account is in excess of 25 percent 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 that may be due and where such employer or former employer can pay some but not all of such amount, the director may agree to accept any amount the director finds reasonable under the circumstances, as consideration for the settlement of the full amount of taxes, interest or penalties due. Whenever such an agreement is made a written record signed by the director shall be maintained in the files of the director. Such records shall set forth:
(a) The name of the taxpayer against whom the liability was assessed;
(b) The amount of the assessed liability;
(c) The amount of the liability paid;
(d) The amount of the liability canceled or waived;
(e) A sworn statement of the taxpayer or personal representative setting forth the complete financial responsibility of the taxpayer or the taxpayer’s estate, and containing a full disclosure of all matters bearing upon the ability of the taxpayer or estate to pay the full amount of the liability assessed; and
(f) The written recommendation of an assistant to the Attorney General assigned to the director that the liability be reduced in the amount shown by the record.
(8) A full and true copy of the record of each such agreement and settlement as provided in subsection (7) of this section shall be filed by the director with the Secretary of State as a public record.
(9) The amount of any settlement reached pursuant to this section shall be first credited to the taxes due from such employer until the principal amount of taxes due has been satisfied and shall be deposited in the Unemployment Compensation Trust Fund. [Amended by 1959 c.598 § 1; 1963 c.390 § 1; 1965 c.359 § 5; 1977 c.538 § 10; 1981 c.29 § 1; 2011 c.597 § 269]
(Temporary provisions relating to deferral and forgiveness of employer taxes for calendar year 2021)
Sections 2, 4 and 5, chapter 638, Oregon Laws 2021, provide:
Sections 3 and 4 of this 2021 Act are added to and made a part of ORS Chapter 657. [2021 c.638 § 2]
(1)(a) Notwithstanding ORS § 657.515, an employer whose tax rate for calendar year 2021 was at least 0.5 percentage points, and not more than 2.0 percentage points, greater than the employer’s tax rate for calendar year 2020 may defer the payment of up to one-third of the taxes due for calendar year 2021 until June 30, 2022, without accruing interest or penalties on the deferred amounts.
(b) Amounts deferred under this subsection and not forgiven under subsection (2) of this section become subject to ORS § 657.515 beginning on July 1, 2022.
(2) If the increase in the tax rate described in subsection (1) of this section was:
(a) More than 1.0 percentage point and not more than 1.5 percentage points, 50 percent of the deferrable amounts shall be forgiven.
(b) More than 1.5 percentage points and not more than 2.0 percentage points, 75 percent of the deferrable amounts shall be forgiven.
(3) An employer whose tax rate for calendar year 2021 was more than 2.0 percentage points greater than the employer’s tax rate for calendar year 2020 shall have one-third of the taxes due for calendar year 2021, including any interest or penalties on the taxes, forgiven.
(4) An employer is not eligible for deferral or forgiveness of taxes under this section unless the employer:
(a) Files all wage reports due under ORS § 657.571 for calendar year 2021 in a timely manner;
(b) Pays all tax liabilities imposed under ORS Chapter 657 for calendar year 2021 that are not deferred or forgiven in a timely manner; and
(c) As of January 1, 2021:
(A) Had paid all outstanding unemployment insurance taxes and related liabilities; or
(B) Had paid all outstanding amounts due according to the terms of a payment plan accepted by the Director of the Employment Department for repayment of all outstanding amounts described in subparagraph (A) of this paragraph. [2021 c.638 § 4]
Sections 3 and 4 of this 2021 Act are repealed on January 2, 2032. [2021 c.638 § 5]