Oregon HB 2271 Change Notification
This act provides a credit against an employer’s unemployment insurance taxes for calendar years 2025, 2026 and 2027 if the employer’s tax rate for calendar year 2025 is at least three percentage points less than the employer’s tax rate for calendar year 2024. There are a few stipulations included:
- May not exceed $5,000 for any calendar year
- Not allowed for any calendar year for which the amount of tax credit would be less than $100
- Employer must file all quarterly contribution reports timely for calendar years 2024 and 2025
- Employer must pay timely all taxes due for calendar years 2024 and 2025
- As of January 1, 2025, employer must have paid all outstanding unemployment insurance taxes and related liabilities or has paid all outstanding amounts due according to the terms of a payment plan accepted by the Director of the Employment Department
Effective Date
Immediately
Oregon House Bill 2271 Implication to Stakeholders
This is good news for employers in this state over the next few years since it should reduce their overall unemployment tax liability.
Recommended Action
Employers should be vigilant in filing and paying their taxes timely each quarter. If historically this is not true for them, they will be ineligible for this credit.
