ORS 657.146¹
Withholding from benefits for tax purposes
  • rules

(1) A claimant may elect to have an amount withheld from benefits otherwise payable to the claimant.

(2) An election made under this section shall be on such form and in such manner as prescribed by the Employment Department.

(3) A claimant making an election under this section may terminate the election at any time.

(4) The amount to be withheld by the Employment Department from a payment of benefits to a claimant making the election under this section shall be the total of:

(a) The amount determined under the rules of the federal Internal Revenue Code relating to the voluntary withholding of amounts from unemployment benefits, for federal income tax purposes; and

(b) An amount equal to six percent of the payment to which the claimant would be entitled but for the election made under this section, for state income tax purposes.

(5) Amounts withheld by the Employment Department pursuant to an election made under this section shall remain in the Unemployment Compensation Trust Fund established under ORS 657.805 (Unemployment Compensation Trust Fund). Those amounts allocable to federal income tax withholding shall be transferred by the Employment Department to the federal Internal Revenue Service in the time and manner provided by federal law and those amounts allocable to state income tax withholding shall be transferred to the Department of Revenue in the time and manner provided by the Department of Revenue by rule. [1995 c.556 §55; 1997 c.133 §2]

Chapter 657

Notes of Decisions

An individual who performs services for remunera­tion is an employee, and per­son or organiza­tion for whom services are performed is an employer under terms of Employ­ment Division Law even if remunera­tion is paid indirectly rather than directly unless employer shows that some statutory exclusion applies. Lectro Lift, Inc. v. Morgan, 14 Or App 316, 513 P2d 526 (1973)

Mere act of incorporating as professional corpora­tion does not, by itself, create employer-employee rela­tionship for purposes of this chapter. Peterson v. Employ­ment Division, 82 Or App 371, 728 P2d 95 (1986)

Determina­tion of whether claimant is qualified for benefits is made by reference to ORS 657.150 (Amount of benefits) and 657.155 (Benefit eligibility conditions), which require determina­tion of amount of work that claimant performed in “employ­ment” as defined in ORS chapter 657, which, in turn means that exclusions from “employ­ment” set out in ORS 657.040 (Employment) through 657.094 (Employment) must be considered. May Trucking Co. v. Employ­ment Dept., 251 Or App 555, 284 P3d 553 (2012)

Atty. Gen. Opinions

Determining employer of musicians’ group, (1972) Vol 35, p 1306

1 Legislative Counsel Committee, CHAPTER 657—Unemployment Insurance, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors657.­html (2019) (last ac­cessed May 16, 2020).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2019, Chapter 657, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano657.­html (2019) (last ac­cessed May 16, 2020).
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information