Oregon Statutes - Chapter 657 - Unemployment Insurance - Section 657.840 - Federal Advance Interest Repayment Fund; assessment of tax; applicability.

(1) On the first day of the third month of a calendar quarter the Director of the Employment Department shall:

(a) Estimate the interest payable, accrued through the end of the calendar quarter, on federal advances obtained under the provisions of ORS 657.807;

(b) Estimate the amount of federal advance interest repayment tax receipts expected to be collected during the quarter for any preceding calendar quarter in which such tax was assessed;

(c) Add the amount in the Federal Advance Interest Repayment Fund on the last day of the immediately preceding calendar quarter to the estimate in paragraph (b) of this subsection; and

(d) Subtract the sum obtained in paragraph (c) of this subsection from the estimate in paragraph (a) of this subsection.

(2) If the remainder obtained in subsection (1)(d) of this section is more than zero, each employer subject to this chapter shall be assessed a federal advance interest repayment tax. Such tax shall be a percentage of the regular unemployment tax payable under this chapter for the calendar quarter. The percentage shall be determined by dividing the remainder in subsection (1)(d) of this section by the estimated amount of unemployment tax due and payable on wages paid during the quarter. The percentage shall be rounded up to the next full percent.

(3) The tax assessed under this section shall be collected in such manner as the director may prescribe. Interest and penalties applicable to the regular unemployment insurance tax shall be applicable to this tax.

(4) There is hereby created a Federal Advance Interest Repayment Fund as a separate fund in the State Treasury. Such fund shall consist of all moneys received pursuant to this section and interest earnings accruing to the fund and shall be used only for the payment of interest accruing and payable on advances received under ORS 657.807, except that if at the end of any calendar quarter, all advances and interest have been repaid, any remaining balance in the fund may be transferred to the Unemployment Compensation Trust Fund.

(5) This section does not apply to public and nonprofit employers or Indian tribes making reimbursement payments as provided in ORS 657.505 and 657.513. [1983 c.52 §2; 2001 c.572 §14]

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Last modified: August 7, 2008