Or. Admin. Code § 471-070-3040

Current through Register Vol. 63, No. 12, December 1, 2024

Section 471-070-3040 - Contributions: Withholding of Employee Contributions

(1) An employer may not deduct from the employee's subject wages more than the maximum allowable amount of 60 percent of the total contribution rate described in OAR 471-070-3010 for a pay period rounded to the nearest cent. When rounding, any number with the last figure five or greater is rounded up, while numbers less than five are rounded down.

(2) When performing the calculation described in section (1) of this rule, the intermediate steps shall not be rounded, only the final step shall be rounded to the nearest cent.

Example: On February 2, 2023 Jennifer earned $1,769.89 in subject wages for the pay period. The employer calculates Jennifer's contributions by multiplying the subject wages by the total contribution rate of 1% (not rounded) by the employee contribution rate of 60% (rounded to the nearest cent). The total potential contribution is $17.6989 ($1,769.89 x 0.01 = $17.6989, not rounded). Jennifer's employee portion of the potential contribution is $10.62 ($17.6989 x 0.60 = $10.61934, rounded to the nearest cent is $10.62). The employer's contribution (if a large employer) is $7.08 ($17.6989 x 0.40 = $7.07956, rounded to the nearest cent is $7.08).

(3) If an employer fails to deduct the maximum allowable employee share of the contribution rate for a pay period, the employer is considered to have elected to pay that portion of the employee's contribution that the employer failed to deduct. The employer is liable to pay that portion of the employee share under ORS 657B.150(5) or ORS 657B.210(5) for that pay period, if the failure to deduct the contribution is not corrected within the quarter. The employer may deduct from the employee's subject wages the amount they failed to deduct within the quarter.

(4) Notwithstanding section (3) of this rule, when there are insufficient employee wages to collect the employee's share of the contribution for a pay period, the employer may deduct the employee's share of the uncollected contribution from future wages or have the employee pay the contribution amount due to the employer before the end of the next quarter. The employer may collect the employee's share of uncollected contributions until the end of the next quarter following the quarter in which the employee had insufficient wages for the contribution. The total amount deducted from any paycheck may not exceed 10 percent of the employee's gross wages earned in the pay period covered by the paycheck.

(5) An employer may elect to pay the employee's contribution, in whole or in part, and must provide a written notice, policy, or procedure to the employee or enter into a collective bargaining agreement with the employee specifying that the employer is electing to pay the employee contribution, making the employer liable for that portion of the employee contribution. The employer must give written notice of an update to its notice, policy, or procedure or amendment to its collective bargaining agreement to the employee at least one pay period prior to any reduction by the employer of the employee contribution amount that the employer previously elected to pay.

(6) If an employer has elected to pay, in whole or in part, the employee portion of contributions as stated in section (5) of this rule, the employer may not deduct the amount the employer elected to pay from a future paycheck of the employee.

Or. Admin. Code § 471-070-3040

ED 12-2022, adopt filed 10/06/2022, effective 10/6/2022; ED 4-2023, amend filed 07/31/2023, effective 8/1/2023

Statutory/Other Authority: ORS 657B.340

Statutes/Other Implemented: ORS 657B.150 & 657B.210