Oregon Employer Unemployment Tax Deferrals & Forgiveness

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Oregon employers may qualify for unemployment tax deferrals and forgiveness for 2021, under a measure (H.B. 3389) signed July 27 by the Governor.

Eligible employers will be automatically enrolled. There is no application for this relief plan. The Oregon Employment Department will contact employers throughout the 2021 UI tax year with updates on eligibility status or requirements.

For UI tax year 2021, the relief plan allows eligible employers to defer one-third of their 2021 UI tax liability until June 30, 2022, and avoid any associated interest and penalties.

This plan also provides up to 100 percent forgiveness of the deferrable 2021 UI taxes, based on how much an employer’s UI tax rate increased from 2020 to 2021:

  • Tax rate increased 0.5 to 1.0 percentage point will be eligible for deferral only
  • Tax rate increased more than 1.0 percentage point and not more than 1.5 percentage points will be eligible for 50 percent of their deferrable UI taxes forgiven
  • Tax rate increased more than 1.5 percentage points and not more than 2.0 percentage points will be eligible for 75 percent of their deferrable UI taxes forgiven
  • Tax rate increased more than 2.0 percentage points will be eligible for 100 percent of their deferrable UI taxes forgiven

Employers must meet all of the following conditions to be eligible for UI tax deferral and forgiveness:

  • As of January 1, 2021 have paid all outstanding UI tax contributions and related liabilities, including those determined in a payment plan accepted by the director of the Oregon Employment Department
  • File all required 2021 payroll reports timely
  • Pay on time all 2021 tax liabilities that are not deferred or forgiven

This information can be found @ https://unemployment.oregon.gov/taxrelief

RASI CLIENTS:

If you receive a notice from the state regarding your eligibility or requirements, please send the communication to your Tax Specialist via support request promptly to ensure the deferred amount is represented on your unemployment tax return and included in the calculation of the quarterly payment. A journal entry will be made on the balance sheet to represent the deferred amount that is due June 30, 2022. If the deferred amount is forgiven, a separate journal entry will be made to record the forgiven amount. If you have any questions, please send a support request regarding Compliance or an email to Compliance@rsiaccounting.com

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