OAR 839-025-0043: Frequency of Payment of Fringe Benefits

(1) Contributions made by a contractor or subcontractor to a bona fide fringe benefit plan, fund, or program must be made on a regular basis and not less often than quarterly. (a) “Regular basis” means either the schedule of contribution as provided in writing in the plan, fund or program, or if none, the regular contribution schedule established by the contractor or subcontractor pursuant to subsection (b) of this section. For example, if the plan specifies that contributions to a bona fide fringe benefit fund be made by the fifteenth calendar day of each month following the month the wages were earned, then contributions to the fund must be made by that date. (b) If the plan, fund or program does not specify a contribution date, or if the specified contribution date as written in the plan, fund or program does not meet the meaning of “not less often than quarterly,” as defined below, the contractor or subcontractor must establish and maintain a contribution date by which payment to the plan, fund or program will be made on a regular basis and not less often than quarterly. (c) “Not less often than quarterly” means that the fringe benefit portion of wages must be contributed to a bona fide fund, plan or program at least once every three months within an established consecutive twelve month period. The contribution must represent payment to the fund, plan or program for amounts earned in the three month period immediately prior to the contribution date. (A) An established twelve month period may be a calendar year, fiscal year, plan year, or other consecutive twelve month period as determined by the employer. The beginning of the twelve month period may be changed only if the change is intended to be permanent, and is not designed to evade the timely payment of contributions into a bona fide fund, plan or program. If an employer does not determine a consecutive twelve month period, the default period shall be a calendar year; that is, from 12:00 midnight on January 1 to 11:59 p.m. December 31, each year. (B) As an example, using the calendar year as the established consecutive twelve month period, a contractor or subcontractor establishes a contribution date of April 15 for the payment of fringe benefits earned between January 1 and March 31 into the plan, fund or program; consequently, amounts earned between April 1 and June 30 must be contributed into the plan, fund or program on or before July 15; amounts earned between July 1 and September 30 must be contributed into the plan, fund or program on or before October 15; and amounts earned between October 1 and December 31 must be contributed into the plan, fund or program on or before January 15. (2) Payments of fringe benefits made directly to the worker in lieu of payment of fringe benefits to a plan, fund, or program must be paid to the worker as wages on the regularly scheduled pay date.