State & Local Tax

2021 Oregon Unemployment Tax Payment Deferral Available

February 1, 2021

On February 1, 2021, the State of Oregon Employment Department (OED) released information regarding 2021 unemployment tax assistance available to employers affected by COVID-19. Due to the pandemic, severely impacted Oregon employers, unfortunately, experienced an increase in their 2021 unemployment rates.

To support these businesses, the OED is expanding efforts to help these employers. Employers who were in good standing with their UI taxes prior to the pandemic and whose UI tax rate went up .5% or more from 2020 to 2021, now have the option to request payment plan arrangements with the OED.

Employers are still required to file their quarterly payroll reports timely. However, because of COVID-19 related factors, if an employer is unable to fully pay their UI taxes for 2021, the department will remove penalties and interest only if a payment plan has been established with the Employment Department.

Eligible employers will need to meet the following requirements:

  • UI tax rate increased by .5% or more from 2020 to 2021
  • Were in good standing with their Oregon UI taxes before the emergency declaration in March 2020. Good standing means your business has filed and paid all payroll taxes by Feb. 1, 2020 for previous calendar years.
  • Files quarterly payroll reports timely and accurately
  • Pays at least two-thirds of quarterly UI payroll taxes on time; and
  • Sets up a monthly payment plan and pays the remaining amount of payroll taxes owed (if any) no later than June 30, 2022.

 

This relief only applies to Oregon UI payroll taxes.

OED does not have authority over other payroll taxes.

 

Employers can request COVID-19 Unemployment Tax Relief by:

 

Our expert team of state and local tax professionals at Geffen Mesher is ready and prepared to help navigate these changes for your business and can be reached at SALT@gmco.com.

Questions? Contact: