OAR 471-031-0320: Implementation of Provisions Related to Unpaid Deferral Balances

(1)(a) If applying the provisions of Section 4 (1)(b) of ORS chapter 657 [2021 c.638 §2] [2021 c.638 §4], an employer receiving a deferral of taxes due for calendar year 2021 must pay the deferred amount by June 30, 2022. (b) Unpaid balances as of July 1, 2022, will result in interest accrued and applied to the unpaid balance beginning with the month in which the balance was originally due under OAR 471-031-0070(1); and (c) The employer is no longer eligible for forgiveness of taxes under ORS 657.515. (2) Two examples are provided in the subsection below for calculating the interest on the unpaid deferral balance: (a) An employer defers $500 or one-third of the tax due in the third quarter of 2021. Based on the employer’s rate increase of one percentage point, they are eligible for 50% forgiveness of the deferrable amounts. On July 1, 2022, all of the $500 owed for the third quarter of 2021 remains unpaid. The employer is assessed interest at 1.5% per month or fraction of a month on the $500 unpaid deferred amount starting November 1, 2021, and is not eligible for 50% forgiveness because the employer has not paid all tax liabilities imposed that are not deferred or forgiven in a timely manner (Section 4. (1)(a) & (4)(b) of Chapter 638, Oregon Laws 2021. (b) An employer defers $500 or one-third of the tax due in the third quarter of 2021. Based on the employer’s rate increase of one percentage point, they are eligible for 50% forgiveness of the deferrable amounts. On July 1, 2022, half of the deferred amount or $250 remains unpaid. The employer has the remaining $250 forgiven, and is assessed no interest because the employer has paid all tax liabilities imposed that are not deferred or forgiven in a timely manner (Section 4. (1)(a) & (4)(b) of Chapter 638, Oregon Laws 2021.