2017 ORS 657.663¹
Penalty for failure by employer to file reports
  • amount
  • collection procedure
  • review of penalty

(1) If an employer fails to file a quarterly tax report or quarterly report of employees’ wages and hours of work by the 10th day of the second month following the end of the calendar quarter, the Director of the Employment Department, for the first such failure, shall send to the employer at the employer’s last-known address a written notice warning the employer that a subsequent failure to file a report could result in the imposition of a late filing penalty.

(2) If an employer, without good cause, fails to file a timely report within the three-year period immediately following a written warning sent pursuant to subsection (1) of this section, the employer may be assessed a late filing penalty in addition to other amounts due.

(3)(a) Except as provided in subsection (4) of this section, a penalty assessed under subsection (2) of this section shall be 0.0002 of the taxable wage base in effect for the year against which the penalty is being assessed for each employee listed each quarter on the late filed reports. The penalty per employee shall be rounded to the nearest dollar.

(b) Notwithstanding paragraph (a) of this subsection, the minimum penalty for any calendar quarter may not be less than $100 and the maximum penalty may not be more than 0.05 of the taxable wage base in effect for the year. The maximum penalty shall be rounded to the nearest $100 interval.

(4) A penalty assessed under subsection (2) of this section for an employer who has no payroll during the calendar quarter to which a quarterly report relates shall be as follows:

(a) $10 for the first report filed late within the three-year period immediately following a written warning sent pursuant to subsection (1) of this section.

(b) $25 for the first report filed late within the three-year period immediately following the assessment of a penalty under subsection (2) of this section.

(c) $50 for the second report filed late within the three-year period immediately following the assessment of a penalty under subsection (2) of this section.

(d) $100 for the third or subsequent report filed late within the three-year period immediately following the assessment of a penalty under subsection (2) of this section.

(5)(a) A penalty assessed under this section is final unless, within 20 days after the date the assessment is mailed to the last-known address of the employer, the employer requests the penalty be deleted. The request must be in writing and state the reason why the report was filed late.

(b) If the director determines the employer had good cause for filing the report late, the penalty shall be deleted. If it is determined there was not good cause for filing the report late, the request for deletion shall be denied.

(6)(a) A determination denying the request for deletion is final unless, within 20 days after the date the determination is mailed to the last-known address of the employer, the employer files a request for hearing. The request for a hearing must be in writing and state the reasons why the determination should not be affirmed.

(b) Judicial review of the determination of denial shall be as provided for review of orders in contested cases in ORS chapter 183, except that the request for hearing shall be filed within 20 days after the issuance of the determination of the director or a designated representative. [1981 c.77 §15 (enacted in lieu of 657.662); 1983 c.508 §12; 1985 c.147 §1; 1995 c.153 §2; 1999 c.849 §§143,144; 2003 c.75 §54; 2013 c.595 §1]

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 (2017) (last ac­cessed Mar. 30, 2018).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 657, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano657.­html (2017) (last ac­cessed Mar. 30, 2018).
 
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.