Starting A Business in Oregon

regon Business Guide
! Starting a Business in Oregon Checklist ! Information for Oregon Employers ! Business Assistance Programs
New Business Checklist

The following checklist itemizes the basic considerations and requirements for starting a business in Oregon. Beside each item there is a reference to the pages in this booklet with more information on the topic so you can determine whether that item is applicable to your business. While the list is intended to be comprehensive, it is a general checklist and there may be some obligations for your specific business activity that are not covered.
For All Businesses
1. BackgroundBefore You Begin Your Business (pg. 6) 2. Protect Your Business Idea (pg.7-9) 3 Select Your Business Name And Structure (pg. 10-16)
4. Check State License Requirements (pg.17) 5. Check Local License Requirements (pg.17) 6. Check Zoning for Business Location (pg.17) 7. Obtain Income Tax Information (pg. 18-19) 8. Arrange for Personal Property Tax Report for Business (pg. 20) 9. Check on Other Taxes that Apply to Your Business (pg. 21) 10. Check with Department of Environmental Quality, if necessary (pg. 22) 11. Obtain Federal Tax I.D. Number, if needed (pg. 23) 12. Determine if You Must Comply with Americans with Disabilities Act (pg. 24) 13. Determine if You Need to Register as a Construction or Landscape Contractor (pg. 25-28)
Additional Requirements for Businesses with Employees 14. File Combined Employer Registration Report Form (pg. 29) 15. Obtain Federal I.D. Number, if not applied for at step 11 (pg. 54) 16. Obtain Withholding Exemption Certificate (W-4 Form) For Each Employee (pg. 54-57) 17. Obtain Workers Compensation Insurance (pg. 58-62) 18. Contact OR-OSHA About Safety and Health Regulations (pg. 62) 19. Obtain Immigration and Naturalization I-9 Forms For Each Employee (pg. 63) 20. Contact Bureau of Labor and Industries For Employer Information (pg. 63-64) 21. Report New Hires to Support Enforcement (pg. 64)
May 2003
What is the Oregon Business Guide?

Background The Business Referral Center is a central stop for obtaining the general information and forms to register a business in Oregon with five major state agencies. In addition, the Centers staff provides information on whether a business is required to have a state license, permit, or certification and makes referrals to regulatory agencies or boards. The Center also offers referrals to business assistance programs available in Oregon. The Business Referral Center is located in the Corporation Division of the Secretary of States Office. Business Referral Center Public Service Building, Suite 151 255 Capitol Street NE Salem, OR 97310-1327 503-986-2200 E-mail: Brc.Sos@state.or.us The Business Referral Center has produced the Oregon Business Guide, a consolidated source of information from the participating agencies. The Oregon Business Guide provides a general checklist to guide you through the process of registering your business. It also includes the basic employer information previously published in the Information for Oregon Employers booklet. Finally, it lists business assistance programs that may be good resources as you begin and continue to run your business. The Oregon Business Guide is now on-line at: http://www.filinginoregon.com/obg. A new feature of the Business Referral Center is the Business Wizard. Users answer a few brief questions and are provided with a customized referral list of: Government Licensing Contacts Registration Information Contacts Regulatory Contacts Organization Contacts City Contacts County Contacts
This referral list contains phone numbers for key agency contacts and Internet links to appropriate forms, publications and information about requirements for doing business in Oregon. The referral list can also be saved to the computer desktop for future use and reference. The Business Wizard is available at: http://www.filinginoregon.com/brc. Publication Limitations The government agencies participating in the Central Business Registration Coordinating Council share all information allowed by law and help each other enforce compliance with the individual programs. If you have any questions about the material covered in this booklet, please contact the appropriate agency. Phone numbers are listed in each section along with material provided by the agency. Information in this publication is not a complete statement of laws and administrative rules. This publication also includes information from a number of additional agencies and assistance programs. Every effort has been made to ensure accuracy of the information but it is impossible to guarantee that the information will continue to be valid. Since this publication is updated periodically, assistance with corrections and additions is welcome and should be directed to the Business Referral Center, Public Service Building, Suite 151, 255 Capitol Street NE, Salem, OR 97310-1327, 503-986-2200. May 2003 3
Table of Contents
New Business Checklist ...................................................................................................................... 1
What is the Oregon Business Guide? .................................................................................................................. 3
Starting a Business in Oregonfor all businesses

1. Before you begin your business ...............................................................................................................6 2. Protect your ideaU.S. Patents, U.S. Copyrights, Trademarks and Service Marks .............................7 3. Select your business name and structure ............................................................................................... 10 Sole Proprietorship ......................................................................................................................... 10 General Partnership ........................................................................................................................ 11 Corporation ..................................................................................................................................... 11 Domestic Corporation .................................................................................................................... 12 Foreign Corporation ........................................................................................................................ 12 Limited Liability Company ............................................................................................................. 12 Domestic Limited Liability Company ............................................................................................. 13 Foreign Limited Liability Company ................................................................................................ 13 Limited Partnership ........................................................................................................................ 13 Domestic Limited Partnership ........................................................................................................ 13 Foreign Limited Partnership ........................................................................................................... 14 Limited Liability Partnership .......................................................................................................... 14 Reserving a Corporate, Limited Liability Company, or Limited Partnership Name ....................... 15 Assumed Business Name (ABN) Registration .............................................................................. 15 Sale of Securities for Some Types of Business Structures ............................................................ 16 4. Check State License RequirementsBusiness Referral Center .......................................................... 17 5. Check Local License Requirements ...................................................................................................... 17 6. Check Zoning for Business Location ..................................................................................................... 17 7. Obtain Income Tax Information ............................................................................................................. 18 Estimated Income Tax Payments ................................................................................................... 19 8. Arrange for Personal Property Report ................................................................................................. 20 9. Check on other Taxes that Apply to Your Business .............................................................................. 21 10. Check with the Department of Environmental Quality, if required ....................................................... 22 11. Obtain Federal Tax I.D. Number, if needed .......................................................................................... 23 12. Determine if you must comply with the Americans with Disabilities Act (ADA) ................................ 24 13. Determine if you must register with the Construction or Landscape Contractors Boards ................... 25
Information for Oregon Employersfor businesses with employees

14. File Combined Employer Registration Form ........................................................................................ 29 Oregon Withholding Tax ................................................................................................................. 30 Who is an Employer? ........................................................................................................ 30 Who is an Employee? ....................................................................................................... 31 How to Register ................................................................................................................ 31 Taxable Wages .................................................................................................................. 32 Exempt Wager .................................................................................................................. 33 Independent Contractor Definition .................................................................................... 34 How to Compute Withholding Tax .................................................................................... 34 Voluntary Withholding ....................................................................................................... 35 Payment Due Dates and Alternate Payment Method ...................................................... 36 Reporting Requirements .................................................................................................... 37 Penalty and Interest .......................................................................................................... 39 Liability .............................................................................................................................. 39 Obtaining Forms ................................................................................................................ 39
Oregon Business Guide
Table of Contents
Oregon Unemployment Tax ........................................................................................................... 40 Who is an Employer and who is an Employee? ................................................................ 40 Taxable Payroll and Tax Rates ......................................................................................... 41 Nonprofit and Religious Organizations, Corporations, LLCs, LLPs, Government Units .................................................................................................................................. 42 Reports Due Each Quarter ............................................................................................... 43 Delinquent Taxes and Late Reports and Change in Organization or Sale ........................ 43 Employment Department Tax OfficesPhone List ......................................................... 44 Transit District Taxes ..................................................................................................................... 45 Who Must File and Pay? ................................................................................................... 46 How to Register ................................................................................................................ 47 When and How to File ...................................................................................................... 47 TriMet and Lane Transit District Self-Employment Tax ................................................... 48 TriMet Transit District Map .............................................................................................. 49 Lane Transit District Map ................................................................................................. 50 Quick Reference TableComparison of Tax Liability for Oregon Unemployment, Withholding, and Transit Taxes for Certain Types of Wages ......................................................... 51 Obtain Federal Tax I.D. Number (if not Obtained Under Step 11) ..................................................... 54 Obtain Employee Withholding Exemption Certificates (W-4 Forms) .................................................. 54 Internal Revenue Service ............................................................................................................... 54 Who Must Withhold Federal Taxes? ................................................................................. 54 Reporting Requirements .................................................................................................... 55 Who Pays Federal Unemployment Tax? .......................................................................... 57 Earned Income Credit and How to get Forms .................................................................. 57 Obtain Workers Compensation Insurance ......................................................................................... 58 Who Needs Coverage? ..................................................................................................... 58 Who is an Employer? and Exempt Employees ................................................................. 58 What Workers Compensation Coverage Provides .......................................................... 59 How do I get Workers Compensation Coverage? ........................................................... 59 Notice of Compliance ....................................................................................................... 60 Worker Leasing and Penalties for Noncompliance ........................................................... 60 How the System is Financed, Workers Benefit Fund Assessment and Reports Due Each Quarter .............................................................................................................................. 61 Contact OR-OSHA for Occupational Safety and Health Regulations ............................................... 62 Obtain Immigration and Naturalization I-9 Forms for Each Employee ............................................... 63 Contact Bureau of Labor and Industries for Employer Information ................................................... 63 Report New Hires to Division of Child Support .................................................................................. 64
15. 16.
17.
18. 19. 20. 21.
Business Assistance Programs

Management and Technical Services ............................................................................................. 65 Minority & Women Owned Business Assistance Programs .......................................................... 70 Financial Resources ........................................................................................................................ 73 Marketing and International Trade .................................................................................................. 75
Appendix
Posters Required for Employers .................................................................................................... 76 Buying Wholesale and Sales Tax ................................................................................................... 78 Oregons Minimum Wage .............................................................................................................. 78 Using Music in Your Business ........................................................................................................ 78 Map of Oregon Counties ................................................................................................................ 79
May 2003
Starting a Business - Preparation

1. Before You Begin Your Business . . .
Starting a successful business requires a great deal of preparation. The following is a list of recommendations to help you get your business off to a good start. Knowledge Have experience in and knowledge of the business you plan to enter. If you dont have either, consider working in the industry or with a successful owner/operator for at least six months. Experience Have experience in managing people and finances. This is extremely helpful since the majority of businesses fail due to poor or inexperienced management. Research Do your homework. Hours spent studying your proposed business idea can save you money in the long run by giving you the proper information to avoid unsound business decisions. Visit your local library. The librarian can help you find the information you need. Check with relevant trade associations, the local Chamber of Commerce, and the Small Business Development Center (SBDC) in your area, http://www.sba.gov/or. See pages 65-66. For SCORE information, see page 67. Your banker knows a great deal about your area, including average income, level of competition, real estate, and rental values. Bankers can be of great assistance if you take the initiative. Establishing a credit line with your bank can help develop a sound relationship with your banker, and a good record of repayment is an advantage when applying for business loans. Contact insurance brokers about coverage needed for your business activity and for approximate premiums. Since insurance is a competitive business, contact several agents for a comparison of both suggested coverage and premiums. Business Plan Develop a business plan. This is essential, especially if you expect to seek financial assistance from an outside source. Your plan should include analyses of the business, the industry, and the potential market, covering consumers, trends, competition, and all foreseeable risks and problems. It should also include detailed resumes of key members of your management team, noting their strengths, weaknesses, and training needs. It must include a financial plan with a profit and loss forecast and a cash flow forecast. Seek Professional Advice Consult two professional people: An attorney. Consider having an attorney examine the papers you sign. Get advice on any legal questions pertinent to your business such as labor laws if you plan to hire employees or landlord-tenant laws if you plan to lease your place of business. If you do not have an attorney, you may call the Oregon State Bar toll-free at 1-800-452-7636 for referrals, http://www.osbar.org. An accountant. A CPA, a public accountant or a licensed tax consultant can advise you and possibly save you money on taxes if you are buying or starting a business. Your accountant can review tax forms with you, help you fill out the proper reports and give you prompt financial information. If you do not have an accountant, the Oregon Association of Independent Accountants at 503-282-7247, http://www.oaia.net, the Oregon Society of Certified Public Accountants at 503-641-7200, http://www.orcpa.org, or the Oregon Association of Tax Consultants at 503-771-9313, http://www.mind.net/oatc, can make referrals. Financing Identify how you will finance your business. New businesses often underestimate the amount of money it takes to get a business started. An entrepreneur needs to identify both the start-up capital costs and the cashflow requirements for a business. The total of the two, plus a reserve, is the capital recommended for starting a business. 6 Oregon Business Guide
Starting a Business - Protect Your Idea

Financing continued Obtain information on state loan programs from the Business Finance Section, Oregon Economic & Community Development Department, 503-986-0160, http://www.econ.state.or.us.
2. Protect Your Idea

Patents, Copyrights, and Trademarks Some business begin with a new idea, invention, innovative concept, or new process. If your business is dependent on such intellectual property, you may want to protect it by applying for a patent or copyright. If you use a trade or service mark to identify goods or services that you provide, you may choose to register the trade or service mark. U.S. Patents A patent is an exclusive property right to an invention and is issued by the Commissioner of Patents and Trademarks, U.S. Department of Commerce. It gives an inventor the right to exclude others from making, using, or selling the invention in the United States, its territories, and possessions. If you decide to apply for a patent, professional assistance from a patent attorney or patent agent is recommended because the patent procedures are detailed and technical. However, if you are willing to spend the time, it is possible to perform a preliminary patent search to determine if your invention may qualify for a patent by using the services of the Boley Law Library of the Northwestern School of Law at Lewis and Clark College in Portland, which has been designated as the Oregon Patent & Trademark Depository Library. Please note that, although staff will show you the process for performing a patent search, you will have to perform the search yourself. Be sure to call ahead for library hours. For more information contact: Patent Specialist Northwestern School of Law Lewis and Clark College Boley Law Library 10015 SW Terwilliger Blvd. Portland, OR 97219 503-768-6676 http://law.lclark.edu/~lawlib/intproperty.html Information on the application process and forms for applying for a patent are included in a booklet entitled General Information Concerning Patents. The booklet is $4.75 and can be ordered by phone using a Visa or Mastercard from the U.S. Government Bookstore at 503-221-6217. The booklet can also be obtained by mail. Check on the current price before sending a request with a check or charge card number to: U.S. Government Bookstore 1305 SW First Avenue Portland, OR 97201-5801 http://bookstore.gpo.gov U.S. Patent information is also available on-line at: http://www.uspto.gov. Additional information is available from: U.S. Commissioner of Patents and Trademarks Washington, DC 20231, 1-800-786-9199*. *This is an automated information line. You can reach an operator by choosing 1 (patent and trademark information) on the first menu and then selecting 0 on the second menu.
May 2003

U.S. Copyrights A copyright protects literary, dramatic, musical, artistic, or other intellectual creations from unauthorized copying or exploitation. Items such as written materials, works of art, musical compositions, and computer programs are protected by copyright. No publication, registration, or other action in the Copyright Office is required to secure a copyright; the copyright is secured automatically when the work is created and fixed in a tangible form of expression. However, there are definite advantages to registering a copyright. Copyrights are registered with the U.S. Library of Congress. To obtain information on copyrights and copyright application forms, contact: Library of Congress Copyright Office 101 Independence Avenue SE Washington, DC 20559-6000 202-707-3000 (General Information) 202-707-5959 (Information Specialist) http://www.loc.gov/copyright/ Trademarks and Service Marks A trade or service mark identifies goods or services made or sold by a person to distinguish them from goods or services made or sold by others. It can consist of words, names, symbols, devices, or any combination of these. The mark must be in use before it can be registered. The registration is optional. The trade or service mark registration advises the public that the registrant believes he or she is the only person who has a right to use the mark in connection with those goods or services. It prevents the registration of an identical or similar mark, and also helps prove the date of first use. Oregon Trademark and Service Mark Registration It is the use of a trade or service mark in Oregon, rather than registration, that creates ownership. A trademark has been used in Oregon when goods are sold or distributed in the state and the mark is placed in any manner on the goods, containers, tags, labels, or displays associated with those goods. A service mark has been used in Oregon when the mark is used or displayed in the sale or advertising of services rendered in this state. The Oregon trade and service mark registration form is available online at http://www.filinginoregon.com/ forms/. The form may also be obtained from the Corporation Division by calling 503-986-2200. Submit the completed form for processing to the following address or fax number: Corporation Division Business Registry Section Public Service Building, Suite 151 255 Capitol Street NE Salem, OR 97310-1327 503-986-2200 http://www.filinginoregon.com There is a non-refundable processing fee of $20 for filing a trade or service mark application, and the mark must be renewed every 5 years. Please allow one to two weeks for processing documents submitted by mail. If submitted by fax, payment must accompany the document with a Visa or Mastercard credit card number. The number and expiration date must be included on the fax cover sheet. Faxed documents are processed in the order received, usually within three business days. The fax cover sheet with the credit card number is destroyed when the document is processed. If the mark does not resemble an active mark already registered and the application conforms 8 Oregon Business Guide

Oregon Trademark and Service Mark Registration continued to Oregon statute, Business Registry processes the document and returns a copy to the customer. The fax cover sheet with the credit card number is destroyed when the document is processed. NOTE: Businesses are encouraged to check for conflicts with federally registered trade or service marks before registering a trade or service mark in Oregon. Since trade and service mark rights arise from the use of the mark, a current federal registration may indicate prior use of the mark by another person. Federal trademark information is available at the United States Patent and Trademark Depository Library, located at Paul L. Boley Law Library, Northwestern School of Law of Lewis & Clark College, in Portland, Oregon. The library receives periodic updates on both current and pending federal trademark registrations. For further information, call 503-768-6676. Please note that although staff will show you the process for performing a trademark search, you will have to perform the search yourself. Be sure to call ahead for library hours. Trademark searches may also be done online at: http://www.upsto.gov. Federal Trade or Service Mark Registration A Trade or Service Mark may be registered with the U.S. Department of Commerce if the mark has been used on goods or associated with services which have been rendered in commerce that is regulated by the U.S. Congress. An applicant who has not yet used the mark may apply based on a bona fide intention to use the mark in commerce. The term of federal trademark registration is 10 years with 10 year renewal terms. However, the registrant must submit an affidavit stating that the mark is currently in use between the fifth and sixth year after registration or the registration is cancelled. Trademark rights can last indefinitely if the owner continues to use the mark to identify the goods or services. A booklet entitled Basic Facts About Trademarks provides the information and forms for registering a Federal Trade or Service Mark. There is a small fee for the booklet.
The booklet can also be obtained by mail. Check on the current price before sending a request with a check or charge card number to: U.S. Government Bookstore
It is possible to obtain a complimentary copy of Basic Facts About Trademarks from the U.S. Patent and Trademark Office, phone number listed below, if you dont mind waiting longer to receive it. Additional information is available from: U.S. Commissioner of Patents and Trademarks Washington, DC 20231 1-800-786-9199* *This is an automated information line. You can reach an operator by choosing 1 (patent and trademark information) on the first menu and then selecting 0 on the second menu. Federal Trade or Service Mark information is also available on-line at: http://www.uspto.gov.
May 2003
Starting a Business - Business Name and Structure

3. Select Your Business Name and Structure
Business Organization and Registration You may operate a business by yourself (sole proprietorship), with another person (general partnership), or as a separate legal entity (corporation, limited liability company, limited liability partnership, or limited partnership). Each type of business structure has advantages and disadvantages. If you have questions on the form of business that is best for your particular business, a qualified tax consultant or attorney can advise you. Your local Small Business Development Center or library may also have literature or classes that will help you compare different types of business organizations. If you are a construction or landscape contractor, the Construction Contractors Board and Landscape Contractors Board can provide some information on the advantages and disadvantages of different business structures for those business activities. This section provides information on types of business organization and the registration that is required for each. If registration is required, fillable, online forms are available at http://www.filinginoregon.com/forms/ or may be obtained from the Corporation Division by calling 503-986-2200. Submit the completed form and a non-refundable $20 processing fee to the following address or fax number: Corporation Division Business Registry Section Public Service Building, Suite 151 255 Capitol Street NE Salem, OR 97310-1327 Fax: 503-378-4381 Please allow one to two weeks for processing documents submitted by mail. If submitted by fax, payment must accompany the document with a Visa or Mastercard credit card number. The number and expiration date must be included on the fax cover sheet. Faxed documents are processed in the order received usually within three business days. The fax cover sheet with the credit card number is destroyed when the document is processed. If you need to expedite the processing of a document, documents brought to the Customer Service Counter of the Corporation Division are processed while you wait. Documents delivered to the Corporation Division at the above address by express delivery mail such as FedEx or UPS are processed within 24 hours of receipt. Please be aware that overnight service of the US Postal Service does not deliver to the Customer Service Counter; the US Postal Service delivers all state mail to a central location and documents received via that service are processed as regular mail. If you would like to check a name for availability prior to submitting an application, you may check our website at: http://www.filinginoregon.com/bizreg/. However, a name availability check does not guarantee the name will still be available when Business Registry receives the application. Sole Proprietorship A sole proprietorship is the simplest form of business in which one individual conducts the business. The business owner is personally liable for the obligations of the business. A sole proprietor does not have to be registered with Business Registry unless he or she is using an assumed business name. If the name of the business does not include the full legal name of the business owner, the business name must be registered as an assumed business name with Business Registry. The registration allows the public to identify who is transacting business under that business name. See Assumed Business Name Registration, page 15.
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General Partnership A general partnership is an association of two or more persons doing business. All partners are personally liable for the obligations of the business. A general partnership does not have to be registered with Business Registry unless it uses an assumed business name. If the name of each general partner is not conspicuously disclosed to the public in the business name, it must be registered with Business Registry. The registration allows the public to identify who is transacting business under that business name. See Assumed Business Name Registration, page 15. General partnerships are regulated by the Uniform Partnership Law, ORS Chapter 68. Corporation A corporation is a legal entity created under Oregon statute by submitting articles of incorporation with Business Registry. A corporation is owned by its shareholders, in whose names the shares are registered in the records of the corporation. The articles of incorporation must state how many shares the corporation has authority to issue. A corporation acts as a single entity. It exists separately from its owners, and continues to exist even though the shareholders may change. As a separate entity, a corporation must file its tax returns. It may own property, sue, and be sued. A corporation is managed by a board of directors. Except for the initial board, the shareholders generally select the directors. The number of directors is determined by the articles of incorporation or the bylaws. The directors must elect the president and secretary and adopt bylaws. The board may elect or appoint other officers, or the bylaws may prescribe how other officers are selected. The same person can hold two or more offices. A corporation must have a registered agent in Oregon whose street address is the registered office. When a corporation is sued, the legal papers are served on the registered agent. Thus, it is necessary that the registered office have a street address. A registered agent can be an individual or a legal entity. The three common types of corporations filed in Oregon are business corporations, nonprofit corporations, and professional corporations. Business and professional corporations are for-profit corporations. A nonprofit corporation is formed for any lawful purpose except for financial profit. A professional corporation is a forprofit corporation formed for the purpose of providing one or more specific types of professional service. All the shareholders of the professional corporation must be licensed to render one of the professional services. Corporations formed under Oregon statute are domestic corporations. Those formed under the laws of other states, but transacting business in Oregon, are foreign corporations.
May 2003
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Domestic Corporation To form a domestic corporation in Oregon, articles of incorporation and a non-refundable $20 processing fee must be submitted to Business Registry. Before articles of incorporation are filed, the name is checked for availability. The name must be distinguishable from other active names on Business Registry records. If the name is distinguishable and the articles conform to Oregon statute, Business Registry processes the document and returns an acknowledgment to the customer. Once the existence of the corporation is established, an organizational meeting of the board of directors is generally held to adopt bylaws and elect officers. The bylaws of the corporation may contain any provisions to regulate and manage the affairs of the corporation consistent with statutes and the articles of incorporation. Note: The Corporation Division does not have a separate filing for an S corporation. The S designation is a federal tax designation. A business corporation that meets the Internal Revenue Service (IRS) requirements for S corporation status can apply for federal tax status as an S corporation by filing Form 2553, Election by a Small Business Corporation, with the IRS. Form 2553 and instructions can be obtained from your local IRS office or from the IRS forms line at 1-800-829-3676. Form 2553 can also be downloaded from the IRS web site at: http://www.irs.ustreas.gov/prod/forms_pubs/forms.html. Please note this link is provided as a convenience only, and the state of Oregon is not responsible for the information available at this site. Foreign Corporation A foreign corporation must obtain authority from Business Registry to transact business in Oregon. An application of authority, including the name and address of its Oregon registered agent and a non-refundable $20 processing fee must be submitted to Business Registry. A certificate of existence or similar document from the jurisdiction of incorporation must be submitted with the application form. The certificate or similar document must be dated within 60 days of the date of the application. Before an application of authority is filed, the name is checked for availability. The name must be distinguishable from other active names on Business Registry records. If the name is distinguishable and the application conforms to Oregon statute, Business Registry processes the document and returns an acknowledgment to the customer. Domestic and foreign business corporations are regulated by the Oregon Business Corporation Act, ORS Chapter 60. Domestic and foreign nonprofit corporations are regulated by the Oregon Nonprofit Corporation Act, ORS Chapter 65. Domestic and foreign professional corporations are regulated by the Oregon Professional Corporation Act, ORS Chapter 58. Forms are available at: http://www.filinginorgon.com/forms. Limited Liability Company A limited liability company (LLC) is an unincorporated association having one or more members. The LLC can be managed by managers or members. Managers can be but are not required to be members. It must be stated in the articles of organization if the limited liability company is to be managed by managers. Managers could be compared to the board of directors, and members are like the shareholders of a corporation or limited partners of a limited partnership. In order to be a member of a limited liability company, a contribution such as cash, property, or services rendered must be made. The internal affairs of the LLC are governed by operating agreements that may be oral or written. These operating agreements are comparable to the bylaws of a corporation. The internal affairs are managed by the members, unless the articles of organization specifically state that they shall be managed by one or more managers. A limited liability company must have a registered agent in Oregon whose street address is the registered office. When a limited liability company is sued, the legal papers are served on the registered agent. Thus, it is necessary that the registered office have a street address. A registered agent can be an individual or a legal entity.
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Limited Liability Company continued Limited liability companies organized under Oregon statute are domestic limited liability companies. Those formed under the laws of other states, but transacting business in Oregon, are foreign limited liability companies. Domestic Limited Liability Company To form a domestic limited liability company in Oregon, articles of organization and a non-refundable $20 processing fee must be submitted to Business Registry. Before articles of organization are filed, the name is checked for availability. The name must be distinguishable from other active names on Business Registry records. In addition, the name of the limited liability company must contain the words limited liability company or the abbreviation L.L.C. or LLC. If the name is distinguishable and the articles conform to Oregon statute, Business Registry processes the document and returns an acknowledgment to the customer. Foreign Limited Liability Company A foreign limited liability company must obtain authority to transact business in Oregon. An application of authority, including the name and address of its Oregon registered agent and a non-refundable $20 processing fee must be submitted to Business Registry. A certificate of existence or similar document from the jurisdiction of organization must be submitted with the application form. The certificate or similar document must be dated within 60 days of the date of the application. Before an application of authority is filed, the name is checked for availability. The name must be distinguishable from other active names on Business Registry records. If the name is distinguishable and the application conforms to Oregon statute, Business Registry processes the document and returns an acknowledgment to the customer. Domestic and foreign limited liability companies are regulated by the Oregon Limited Liability Company Act, ORS Chapter 63. Forms are available at: http://www.filinginoregon.com/forms. Limited Partnership A limited partnership consists of at least one general partner and one limited partner. The general partners control the business and are liable for debts and obligations of the partnership. A limited partner is similar to a shareholder in a corporation because that persons liability is generally limited to the amount of contribution to the partnership. A limited partnership must have a registered agent in Oregon whose street address is the registered office. When a limited partnership is sued, the legal papers are served on the registered agent. Thus, it is necessary that the registered office have a street address. A registered agent can be an individual or legal entity. Limited partnerships organized under Oregon statute are domestic limited partnerships. Those formed under the laws of other states, but transacting business in Oregon, are foreign limited partnerships. Domestic Limited Partnership To form a domestic limited partnership, a certificate of limited partnership and a non-refundable $20 processing fee must be submitted to Business Registry. Before a certificate of limited partnership is filed, the name is checked for availability. The name must be distinguishable from other active names on Business Registry records. In addition, the name of the limited partnership must contain the words limited partnership without abbreviation. If the name is distinguishable and the certificate conforms to Oregon statute, Business Registry processes the document and returns an acknowledgment to the customer.
May 2003
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Foreign Limited Partnership A foreign limited partnership must obtain authority from Business Registry to transact business in Oregon. An application for registration, including the name and address of its Oregon registered agent and a nonrefundable $20 processing fee must be submitted to Business Registry. A certificate of existence or similar document from the jurisdiction of organization must be submitted with the application form. The certificate or similar document must be dated within 60 days of the date of the application. Before a foreign limited partnership is filed, the name is checked for availability. The name must be distinguishable from other active names on Business Registry records. If the name is distinguishable and the application conforms to Oregon statute, Business Registry processes the document and returns an acknowledgment to the customer. Domestic and foreign limited partnerships are regulated by the Uniform Limited Partnership Act, ORS Chapter 70. Forms are available at: http://www.filinginoregon.com/forms. Limited Liability Partnerships A limited liability partnership is an association of two or more persons doing business. It is restricted to partnerships that render a professional service as defined by ORS Chapter 58, or partnerships that are affiliated with a limited liability partnership and render a complementary service or provide services or facilities to the limited liability partnership. You may want to check with your professional licensing agency or board to be sure they recognize this form of business organization. Limited liability partnerships formed under Oregon statute are domestic limited liability partnerships. Limited liability partnerships formed under the laws of other states, but transacting business in Oregon, are foreign limited liability partnerships. Domestic Limited Liability Partnerships To form a domestic limited liability partnership, an application for registration and a non-refundable $20 processing fee must be submitted to Business Registry. Before a limited liability partnership is filed, the name is checked for availability. The name must be distinguishable from other active names on Business Registry records. In addition, the name of the limited liability partnership must contain the words Limited Liability Partnership or the abbreviation L.L.P. or LLP as the last words or letters of its name. If the name is distinguishable and the application conforms to Oregon statute, Business Registry processes the document and returns an acknowledgment to the customer. Foreign Limited Liability Partnerships A foreign limited liability partnership must obtain authority from Business Registry to transact business in Oregon. An application for authorization and a non-refundable $20 processing fee must be submitted to Business Registry. A certificate of existence or similar document from the jurisdiction of organization must be submitted with the application form. The certificate or similar document must be dated within 60 days of the date of the application. Before an application for authorization is filed, the name is checked for availability. The name must be distinguishable from other active names on Business Registry records. In addition, the name of the limited liability partnership must contain the words Limited Liability Partnership or the abbreviation L.L.P. or LLP as the last words or letters of its name. If the name is distinguishable and the application conforms to Oregon statute, Business Registry processes the document and returns an acknowledgment to the customer. Domestic and foreign limited liability partnerships are regulated by the Oregon Revised Partnership Act, ORS Chapter 67. Forms are available at: http://www.filinginoregon.com/forms.
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Annual Report An annual report and a non-refundable $20 processing fee are due on the first anniversary date of a corporation, limited liability company, limited liability partnership, or limited partnership. The annual report form is mailed to the designated mailing address of the entity approximately 45 days prior to the due date. After the first year, a renewal coupon only will be mailed to the designated mailing address of the entity. Submit the renewal coupon and a non-refundable $20 processing fee in the envelope provided. If names or addresses need to be updated at any time after the first annual report has been filed, an amendment to the annual report must be submitted to Business Registry. There is no processing fee for an amendment. Forms are available at: http://www.filinginoregon.com/forms. Reserving A Name Any person intending to organize a corporation, limited liability company, limited liability partnership, or limited partnership may reserve a name by submitting an application for name reservation and a non-refundable $20 processing fee to Business Registry. A name reservation puts a hold on the name only and prevents the registration of an identical name. Before a reservation is filed, the name is checked for availability. The name must be distinguishable from other active names on Business Registry records. If the name is distinguishable, Business Registry processes the document and reserves the name for 120 days. Assumed Business Name Registration A business name must be registered with Business Registry as an assumed business name if the legal name of each person who is carrying on the business is not conspicuously disclosed to the public in the business name. Each persons legal name must include both the first and last names. Nicknames are not legal names and must be registered as assumed business names. If there are words that suggest additional owners, such as company or associates, the name must be registered. A business name that includes all owners full legal names may be registered, but the registration is optional. A corporation, limited liability company, limited liability partnership or limited partnership does not register its name as an assumed business name unless the entity wants to use the name without the entity type designation. If you fail to register your assumed business name, you may be prevented from carrying on a lawsuit for the benefit of your business. To register an assumed business name, an assumed business name application and a non-refundable $20 processing fee must be submitted to Business Registry. The name must be registered in at least one county. For your convenience, there is a map of Oregon counties in the appendix of this publication. See page 79. Before an assumed business name is filed, the name is checked for availability. The name must be distinguishable from other active names on Business Registry records. If the name is distinguishable and the application conforms to Oregon statute, Business Registry processes the document and returns an acknowledgment to the customer. The assumed business name must be renewed every two years by its anniversary date. Business Registry mails a renewal coupon at least 30 days before the renewal is due. If names or addresses need to be updated at any time, an amendment to the assumed business name must be submitted for processing. There is no processing fee for an amendment. Assumed business name registrations are regulated by the Assumed Business Name Statute, ORS Chapter 648. Forms are available at: http://www.filinginoregon.com/forms.
May 2003
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Sale of Securities blue sky laws The Corporate Securities Section of the Department of Consumer & Business Services regulates the sale of securities in Oregon. The most common types of securities are stocks, bonds, and limited partnership interests. However, any type of agreement that obligates you or your business to pay another person part of your profits or make interest payments probably involves a security. If you plan to finance your business with funds other than your own, you may be involved in the offer and sale of securities. Oregon Securities Law, ORS Chapter 59, may require that you file an application to register your securities before you offer or sell them. Contact the Corporate Securities Section before you talk to anyone about helping to finance your business. The staff can explain the law, let you know what exemptions may be available, and provide copies of the securities law and forms required for registration. You can also find the securities law and registration forms on the Division of Finance & Corporate Securities website. If you would like to stop by and talk to someone, call first to be certain a qualified staff member will be available to assist you. Department of Consumer & Business Services Corporate Securities Section 350 Winter Street NE, Room 410 Salem, OR 97301-3881 503-378-4140(voice/TTY) 503-947-7862 (fax) http://www.oregondfcs.org
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Starting a Business - Check License and Zoning Requirements

4. Check State License Requirements: Business Referral Center
License Requirements The state of Oregon does not have a general business license. However, many occupations and business activities require special licenses, permits, or certifications from state agencies or boards. To help businesses comply with state regulations, Oregon has established the Business Referral Center as a first-stop information source. To determine if your particular business activity is licensed or regulated by the state, the Business Wizard online provides a list of referrals for registering a new business and possible license, permit and certification requirements. The Wizard is online at: www.filinginoregon.com Business Referral Center Public Service Building, Suite 151 255 Capitol Street NE Salem, OR 97310-1327 E-mail: Brc.Sos@state.or.us
5. Check Local License Requirements

Local Requirements Cities and counties may require a license for businesses operating within their jurisdictions. If your business is located within the city limits, check with your city offices to see if a local business license is required. If there is no specific listing for business licenses in your directory, the city hall information number is an appropriate initial contact. Licensing offices for the following cities are: Portland Bureau of Licenses 1900 SW Fourth Avenue, Room 3500 Portland, OR 97201 http://www.pdxbl.org 503-823-5157 Eugene Building and Permit Services 99 W 10th Avenue, Suite 240 Eugene, OR 97401 541-682-5379 Salem Permit Application Center 555 Liberty Street SE, Room 320 Salem, OR 97301 503-588-6256
City of Medford Finance Department 411 W 8th Street Medford, OR 97501 541-774-2025
To check on business license requirements at the county level, contact your county administrative offices. The county planning department or county commissioners office is an appropriate first contact.
6. Check Zoning for Business Location

Zoning Requirements Be sure the location you choose for your business is properly zoned for your business activity. Other factors to consider include regulations on business signs and parking at the location. If you are planning to operate a business from your home, you will need to determine if there are restrictions on home-based businesses in your area. Your local city or county planning offices will be able to provide you with this information. May 2003 17
Starting a Business - Check Tax Requirements

7. Obtain Income Tax Information
Federal and State Income Taxes All businesses must fulfill their tax obligations to the federal government and the state of Oregon. When you start a business, it is important to determine what kind of tax obligations you will have and when you will be required to pay your taxes. The Internal Revenue Service (IRS) provides two free CD ROMs A Virtual Small Business Workshop (Publication 3700) and The Small Business Resource Guide (Publication 3207) that contain extensive information for new businesses. These can be obtained by calling the Forms Distribution Center at 1-800-829-3676. For additional information on federal taxes, contact: Internal Revenue Service 1220 SW Third Avenue Portland, OR 97204 1-800-829-1040 in Oregon http://www.irs.gov For information on Oregon taxes, contact: Oregon Department of Revenue 955 Center Street NE Salem, OR 97301-2555 503-378-4988 http://www.dor.state.or.us Note: The Oregon Department of Revenue has a tax help number that is toll-free in Oregon, 1-800-356-4222. This section identifies the federal and state tax forms that are filed by different types of business entities to meet their income tax obligations. However, for specific requirements and responsibilities, contact the Internal Revenue Service and the Oregon Department of Revenue. Income Tax for Sole Proprietors Sole proprietors must file tax Form 1040 with a Schedule C or Schedule C-EZ to meet their federal income tax obligations. A sole proprietor is probably liable for self-employment Social Security Tax which is filed on Schedule SE. To meet state obligations, a sole proprietor files state tax Form 40 with an attached copy of the federal Form 1040. A sole proprietor may be required to make estimated tax payments. See Estimated income tax payments on the next page. Income Tax for Partnerships Federal tax law requires that a partnership (both general and limited) file tax Form 1065. To meet state tax obligations, a partnership files Form 65 with an attached copy of the federal filing. Individual partners file tax Form 1040 for federal income taxes and may be liable for self-employment social security taxes filed on Schedule SE. For state income taxes, the individual partners file state Form 40 with an attached copy of the federal Form 1040. Partners may be required to make estimated tax payments. See Estimated income tax payments on the next page. Income Tax for Limited Liability Companies Generally, a limited liability company (LLC) files the same tax forms as a partnership: federal Tax Form 1065 and state tax Form 65 with an attached copy of the federal filing. Write LLC on top of the state tax Form 65. 18 Oregon Business Guide
Starting a Business - Check Tax Requirements

Income Tax for Limited Liability Companies continued Individual members file tax Form 1040 for federal income taxes and may be liable for self-employment Social Security Taxes filed on Schedule SE. For state income taxes, the individual members file state Form 40 with an attached copy of the Federal Form 1040. Members may be required to make estimated tax payments. See Estimated income tax payments on this page. Income & Excise Tax for Oregon Corporations Corporations file federal taxes using Forms 1120 or 1120A. Corporations doing business in Oregon pay excise tax and file State Tax Form 20 with an attached copy of their federal tax forms. Doing business is defined as being engaged in any profit-seeking activity in this state that is not protected by federal Public Law 86-272. A taxpayer with one or more of the following in Oregon is clearly doing business here:
A stock of goods. An office. A place of business (other than an office) where affairs of the corporation are regularly conducted.
Doing business also includes providing services to customers as the primary business activity or incidental to the sale of tangible or intangible personal property. Corporations not doing business, but having income from an Oregon source, pay income tax and file Form 20-I with a copy of their federal tax forms. Income is from an Oregon source if it is derived from:
Tangible or intangible property located in Oregon or Any activity carried on in Oregon, whether intrastate, interstate, or foreign commerce.
Insurance companies, other than title insurers, file Oregon Form 20-INS. Title Insurers file Oregon Form 20. A corporation that expects its tax to be $500 or more at the federal level is required to make estimated tax payments to the IRS. A corporation that expects its tax to be $500 or more at the state level must pay estimated tax payments to the Oregon Department of Revenue. The estimated tax payments may be made by Electronic Funds Transfer (EFT). Interest is assessed if the correct installment of the tax due is not paid by the due date. For information on state tax credits for corporations, contact the Oregon Department of Revenue at 503-378-4988 and request the information circular Tax Credits for Corporations, No. 150-102-694. Income & Excise Tax for S Corporations An S corporation files its federal tax return on Form 1120S. The state tax return is filed on Form 20S with a copy of the Federal Form 1120S attached. Shareholders of the S corporation should obtain information on their reporting requirements from the IRS and the Oregon Department of Revenue. Estimated Income Tax Payments A sole proprietor, partner, limited liability company member, or shareholder may be required to make estimated income tax payments. In most cases, if you expect to owe $1,000 in federal taxes for the year after subtracting any withholding and tax credits, you must file Form 1040-ES each quarter with the IRS. Generally, if you expect to owe $1,000 or more on the tax-to-pay line on your Oregon tax return, you are required to file Form 40ES each quarter with the Oregon Department of Revenue. Interest is assessed if payments are not made when they are due. Contact the IRS and the Oregon Department of Revenue for specific information.
May 2003
19
Starting a Business - Personal Property Report

8. Arrange for Personal Property Report
Personal Property All businesses are required to file a personal property report with the county assessors office each year. The report should include all personal property on the business premises on the assessment date. If your business has personal property in more than one county, you must submit a separate return in each county. Examples of taxable personal property include machinery, furniture, equipment, tools of the trade, noninventory supplies, leased equipment, and libraries (such as repair manuals, sample books and law books). Any property not currently being used in the business or expensed on your federal income tax business return is considered taxable personal property and must be reported. Property placed in storage or held for sale is also taxable and must be reported. You must report all property you own or had in your possession as of January 1 at 1:00 a.m. The report must be filed by March 1 with the county assessor in the county where the property is located. Penalties are assessed for failure to file a return and for late filings. The penalty can be as much as 50% of the tax owed. Contact your county assessors office for more information on what personal property is taxable and to obtain the forms for filing the report.
20
Starting a Business - Check Business Taxes

9. Check on Other Taxes That Apply to Your Business
Federal There are some federal taxes that apply to specific commodities, products, or services. To determine if there are other federal taxes that apply to your business activity, check with the Internal Revenue Service at 1-800-829-1040. State Contact the Oregon Department of Revenue at 503-378-4988 for information on the following: 1) Amusement device tax - paid by owners of establishments with Oregon Lottery video poker machines. 2) Cigarette tax and tobacco products tax - paid by distributors, manufacturers, and consumers of cigarettes and tobacco products in Oregon. 3) Dry cleaning fee - paid by owners of dry cleaning businesses and dry stores. 4) Dry cleaning solvent tax - paid by owners of dry cleaning businesses and distributors of dry cleaning solvents. 5) Emergency communications (9-1-1) tax - telephone and cellular companies providing telecommunication access to the Oregon 9-1-1 Emergency Reporting System collect this tax from their customers. 6) Forest products harvest tax - paid on timber cut from any land in Oregon. 7) Hazardous substance fee - paid by possessors of non-petroleum hazardous substance. 8) Lane Transit District Self-Employment tax (LTDSE) - paid by business owners on business activity in the transit district. 9) Petroleum load fee - paid by petroleum suppliers and importers to Oregon. 10) Timber privilege tax - paid by timber owners on harvested timbers value. 11) TriMet Self-Employment tax (TMSE) - paid by business owners on activity in the transit district. For taxes related to alcoholic beverages, contact the Oregon Liquor Control Commission at 503-872-5166 or toll-free in Oregon at 1-800-452-6522. For information on gasoline taxes paid by persons licensed to operate as motor vehicle fuel dealers in Oregon, contact the Oregon Department of Transportation, Fuels Tax Group at 503-378-8150. The Oregon Department of Transportation, Motor Carrier Transportation Program, at 503-378-6699, can provide information on weight-mile taxes paid by for-hire and private motor carriers operating into, within, and through the state of Oregon. For information on the annual fee paid by railroads, call the Oregon Department of Transportation at 503-986-4125. The Public Utility Commission at, 503-378-4373, provides information on the annual fee paid by investor-owned utilities operating within the state. Local Taxes Local governments in Oregon may collect other specific taxes, such as a hotel-motel tax. Contact the city and county in which your business is located for complete information on local taxes. If you live in the TriMet area (Portland) or Lane Transit District area (Eugene) and are self-employed, you may be liable for the TriMet or Lane Transit District Self-Employment Tax. For more information, see page 45 of this booklet or contact the Oregon Department of Revenue at 503-378-4988.
May 2003
21
Starting a Business - Check Local Tax and DEQ Requirements

10. Check With the Oregon Department of Environmental Quality
DEQ Requirements You must contact the Oregon Department of Environmental Quality (DEQ) for information on permits or regulations if your business activity involves any of the following: Discharge of material into waters of the state or disposal of wastewaters on land or into the ground. Discharge of water associated with disturbing five or more acres of land with clearing, grading, excavation, and/or construction activities. (Effective Dec. 1, 2002, this rule will apply for disturbing more than one acre of land.) Discharge of stormwater associated with industrial activity. Discharge of emissions into the air. Removal of asbestos-containing material. Treatment, collection, or disposal of hazardous wastes. Operation of a landfill, transfer station, incinerator, or septic lagoon for non-hazardous wastes. Storage, use, or transportation of waste tires. Owning an underground storage tank. Contracting to work on an underground storage tank, including testing or cleaning up of petroleumcontaminated soil. Use, storage, and disposal of any volatile compound (solvents, paint, degreasers) or storage of gasoline. Handling or storage of petroleum products above ground. Disturbing 5 or more acres of land with clearing, grading, excavation, and/or construction activities. Building a parking lot. Generation of any hazardous waste.
DEQ Handbook The DEQ Permits Handbook is on the internet at http://www.deq.state.or.us/pubs/permit/ aboutthedeqpermitshandbook.pdf or can be obtained by calling DEQ. For more information, contact: Oregon Department of Environmental Quality 811 SW Sixth Avenue Portland, OR 97204-1390 503-229-5696 in Portland 1-800-452-4011 toll-free in Oregon 503-229-6993 TDD
22
Starting a Business - Federal Tax ID Number

11. Federal Tax ID Number (SS-4 Form)
General Information All businesses, except certain sole proprietors, are required to obtain a federal tax identification number which is also referred to as an employer identification number (EIN). Sole proprietors and certain Limited Liability Companies must have an EIN if they: Pay wages to one or more employees, or Must file any pension or excise tax returns including those for alcohol, tobacco, or firearms, or Have a state requirement to have an EIN to obtain a business license.
If you have any questions regarding the federal tax identification number, contact your local IRS office or: Internal Revenue Service 1220 SW Third Avenue Portland, OR 97204 1-800-829-1040 Application for Tax Identification Number To obtain a Federal Tax Identification Number, you must complete an SS-4 Form. SS-4 Forms are available at all IRS offices or the IRS will send you a form if you call 1-800-829-3676. The application is also available online at: http://www.irs.gov/businesses/small/article/0,,id=98350,00.html. SS-4 Forms are often available at local banks. If your state requires an EIN in order to get a business license, then you must attach proof to your Form SS-4. You may either apply on-line, phone in, fax or mail the form to the IRS. Be sure you include a daytime phone number on the application in case additional information is required. Apply On-Line, Phone In, Fax or Mail Your SS-4 Application Too apply for your EIN on-line, go to: http://www.irs.gov/businesses/small/article/0,,id=98350,00.html. A provisional number will be assigned after the form is submitted. A confirmation letter will mailed two to three weeks after the form is processed confirming your EIN. The phone number to call for an EIN is 866-816-2065. You will need a completed SS-4 in hand. The fax number to submit an SS-4 application is 215-516-3990. If you include your own fax number, you will be notified of your EIN by fax within one week. Otherwise, you will be notified by mail and should allow two weeks for a response. The address for submitting the form by mail is: Philadelphia IRS Center Attn: EIN Operation Philadelphia, PA 19255 You will receive your EIN by mail in four to five weeks.
May 2003
23
Starting a Business - ADA

12. Determine if you Comply with Americans With Disabilities Act
Background The Americans with Disabilities Act (ADA) is a federal law that prohibits discrimination against disabled persons in the areas of employment, public accommodation, and public services. Title III of the ADA requires that public accommodations make facilities and services accessible to the disabled. Many private businesses are considered public accommodations under this law. The ADA specifies twelve types of entities that, regardless of size, are public accommodations: places of lodging, exhibition or entertainment, public gathering, public display or collection, recreation, and exercise; private educational institutions; establishments serving food or drink; sales or rental establishments; service establishments; stations used for specific public transportation; and social service center establishments. Title I of the ADA deals with private employment and prohibits discrimination against any qualified individual with a disability in all aspects of employment. Title I applies to employers who have 15 or more employees. For More Information on ADA Contact: General information on the ADA is available from: Northwest Disability & Business Technical Assistance Center (NWDBTAC) PO Box 9046 Olympia, WA 98507-9046 1-800-949-4232 (Voice and TDD) For additional information on Title III of the ADA (public accommodation issues), contact: Office on ADA, Civil Rights Division U.S. Department of Justice PO Box 66118 Washington, DC 20035-6118 1-800-514-0301 (Voice) or 1-800-514-0383 (TDD) For additional information on Title I of the ADA (private employment issues), contact: Equal Employment Opportunity Commission 909 First Avenue, Suite 400 Seattle, WA 98104-1061 1-800-669-4000 Employers with 6 or more employees are subject to the state disability law and should contact the Bureau of Labor and Industries for information at 503-731-4073. See page 63 for an address.
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Starting a Business - Construction/Landscape Contractors

13. Determine if you need to become Licensed with the Construction or Landscape Contractors Boards
Who Should be Licensed with the Construction Contractors Board? Oregons Construction Contractor License Act, ORS Chapter 701, requires you to become licensed with the Oregon Construction Contractors Board if you are engaged for compensation in any construction activity involving improvements to real estate. Licensing is required for any individual or business entity which advertises, offers, bids, arranges to do, or actually does any construction, alteration, remodeling, or repair involving residential, commercial, industrial, or public works improvements. Inspection, tree service, power washing, and chimney sweep businesses are also required to be licensed. Violations can result in civil penalties of up to $5,000 per offense. Some categories of construction work are exempt from the license, according to ORS 701.010. If you have any question about whether you must be licensed, contact: Construction Contractors Board (CCB) 700 Summer Street NE, Suite 300 (to visit) P.O. Box 14140 (for mail) Salem, OR 97309-5052 503-378-4621 Ext. 4900 http://www.ccb.state.or.us Requirements Contractors are required to have a bond and liability insurance. Construction contractors are also required to complete a total of 16 hours of Construction Contractors Board classes before they can be licensed, and must pass a state test on the 16 hours. Contractors doing lead-based paint activities must also be licensed by the Oregon Health Division. They may be reached at, 503-731-4500. Contractors doing residential home inspections must also be certified by the CCB. Employer Accounts Contractors may license as either nonexempt (have employees), or exempt (no employees). Nonexempt sole proprietorships have employees. Nonexempt partnerships have employees, or have more than two individual partners, or have partners who are not family members. Nonexempt corporations and limited liability companies have employees and/or more than two working corporate officers or LLC members. Exempt sole proprietorships have no employees. Exempt partnerships have no employees, or they have two individual partners, or they have only family members as partners. Exempt corporations and limited liability companies have no employees with two or fewer working corporate officers who qualify as nonsubject workers under ORS 656.027(9), or they have no employees and all corporate officers are members of the same family (related by blood, marriage or adoption).
If you are licensed as exempt and you hire one or more employees, you must immediately notify the CCB, supply the appropriate employer account numbers, and pay the $20 change fee. If you wish to change from nonexempt to exempt, you must immediately notify the CCB and pay the $20 change fee (ORS 701.080). For information about sole proprietorships, general partnerships, corporations and limited liability companies, see pages 10-15. May 2003 25

Employees or Subcontractors? Oregon law, ORS 701.075, requires a business to qualify as an independent contractor in order to become licensed with the Construction Contractors Board. All contractors licensed with the Construction Contractors Board have signed an independent contractor certificate stating they are independent businesses and not employees, as defined by statute. By operating their businesses according to the eight standards, they are recognized as independent businesses by the Department of Revenue, the Employment Department, and the Workers Compensation Division, as well as the Construction Contractors Board. The standards for independent contractor certification and operation are provided by ORS 670.600. See the definition on page 30 of this booklet. Contractors need to be aware that hiring someone licensed as an independent contractor with the Construction Contractors Boards does not automatically free them from paying taxes and workers compensation insurance on those individuals. Contractors can only avoid these responsibilities if the subcontractor meets all eight parts of the independent contractor definition. Please note: Workers compensation case law takes a more broad interpretation on independent contractor status than ORS 670.600. Workers compensation questions should be directed to the Workers Compensation Division. The telephone number is listed in the appendix of this guide. Completing the Registration There are two ways to get licensed. By mail, licensing takes about two weeks. In person, contractors can become licensed the same day if they come to the Construction Contractors Boards Salem office and have fulfilled all the requirements that are listed in the application form. The Construction Contractors Board must have all of the following items before licensing can be completed: Completed application form Correct fee Bond Liability insurance Proof of completion of 16 hours of education and passage of a state test Signed independent contractor certification form Assumed business name or other business entity filed with Corporation Division, if applicable Employer account information, if applicable, including state account (business identification number), workers compensation, and federal IRS numbers. General Information A business with employees must check with some additional agencies to determine its obligations as an employer. Since the definition of employee differs among Oregon state agencies, read the section under each agency and under each type of tax carefully to determine if you are considered an employer for that agency or tax. If you have any questions about whether you are considered an employer, call or write the agency.
26

Who Should be Licensed with the Landscape Contractors Board? Oregons Landscape Contractor License Act, ORS Chapter 671, requires you to become licensed with the Oregon Landscape Contractors Board if you are engaged for compensation in any landscape work in excess of $500.00 (labor and materials) on residential or commercial property. Licensing is required for any business entity which advertises, offers, bids, arranges to do, or actually does any landscape work which includes planting of lawns, trees, shrubs, vines and other decorative vegetation; the construction of ornamental water features and irrigation systems for landscape plant material. The license also is required for installation of fences, decks, arbors, driveways, walkways and retaining walls when done in conjunction of other landscape activity. If done separate from other landscape work, the bond requirements increase from $3000.00 to $10,000. Violations can result in civil penalties of up to $2,000 per offense. In order to license a landscaping business, the business must either hire a licensed individual landscape contractor into the business or the owner must hold the individual landscape contractor license. Businesses which conduct landscape maintenance functions only, i.e., pruning to a height of 15 ft, lawn care, bark-dusting, planting annuals and perennials, and minor and inconsequential work of less than $500.00 per job site, per year are exempt from having a landscape business license. To inquire about licensing requirements check our website: http://www.lcb.state.or.us, or you can mail us at: Landscape Contractors Board (LCB) 235 Union Street, N.E. Salem, Oregon 97301 Ph: (503)986-6561 Fax: (503)986-6582 e-mail: lcb.info@state.or.us Requirements Landscape businesses are required to have a bond and liability insurance plus carry workmans compensation if they have employees. The business must also employ at least one licensed individual contractor or have an owner who is a licensed individual contractor. In order to be a licensed individual the person must pass a series of examinations that qualify them for the phase of licensure and work they are allowed to perform. Employer Accounts Landscape businesses may license as either nonexempt (have employees), or exempt (no employees).
Nonexempt sole proprietorships have employees. Nonexempt partnerships have employees, or have more than two individual partners, or have partners who are not family members. Nonexempt corporations and limited liability companies have employees and/or more than two working corporate officers or LLC members. Exempt sole proprietorships have no employees. Exempt partnerships have no employees, or they have two individual partners, or they have only family members as partners. Exempt corporations and limited liability companies have no employees with two or fewer working corporate officers, who qualify as nonsubject workers under ORS 656.027(9), or they have no employees and all corporate officers are members of the same family (related by blood, marriage or adoption).
If you are licensed as exempt and you hire one or more employees, you must immediately notify the Board and supply the appropriate employer account numbers. If the employee who holds the level of licensure on which your business licensed is based, leaves your employ, you must immediately notify the board of their departure and provide new licensed individual landscape contractor information in order to keep your license valid. May 2003 27

Employer Accounts continued If you change the form of your business from one to another, e.g., proprietorship to LLC, etc., you must make a new application for licensure, pay new fees and a new license number will be assigned. For information about sole proprietorships, general partnerships, corporations and limited liability companies, see select your business name and structure on pages 10-15. Employees or Subcontractors? Oregon law, ORS 671.525, requires a business to qualify as an independent contractor under ORS 670.600 in order to become licensed with the Landscape Contractors Board. All contractors licensed with the Landscape Contractors Board have signed an independent contractor certificate stating they are independent businesses and not employees, as defined by statute. By operating their businesses according to the eight standards, they are recognized as independent businesses by the Department of Revenue, the Employment Department, and the Workers Compensation Division, as well as the Landscape Contractors Board. The standards for independent contractor certification and operation are provided by ORS 670.600. See the definition of independent contractor to determine what standards an individual or business entity must meet to be considered an independent contractor. Contractors need to be aware that hiring someone licensed as an independent contractor with the Landscape Contractors Board does not automatically free them from paying taxes and workers compensation insurance on those individuals. Contractors can only avoid these responsibilities if the subcontractor meets all eight parts of the independent contractor definition. Please note: Workers compensation case law takes a more broad interpretation on independent contractor status than ORS 670.600. Workers compensation questions should be directed to the Workers Compensation Division. The telephone number is 503-947-7815. Completing the Licensing Process There are two ways to get licensed. By mail, licensing takes about two weeks. In person, businesses can become licensed the same day if they come to the Landscape Contractors Boards Salem office and have fulfilled all the requirements that are listed in the application form. The Landscape Contractors Board must have all of the following items before licensing can be completed: Completed application form (can be found on the web: http://www.lcb.state.or.us). Correct fee. Bond ($3,000 or $10,000). Liability insurance ($100,000 minimum). Proof of having a licensed individual landscape contractor as the owner or as an employee at the same level of licensure desired by the business. Signed independent contractor certification form. Assumed business name or other business entity filed with Corporation Division, if applicable Employer account information, if applicable, including state account (business identification number), workers compensation, and federal IRS numbers.
General Information
A business with employees must check with some additional agencies to determine its obligations as an employer. Since the definition of employee differs among Oregon state agencies, read the section under each agency and under each type of tax carefully to determine if you are considered an employer for that agency or tax. If you have any questions about whether you are considered an employer, call or write the agency. 28 Oregon Business Guide
Oregon Employer Information - Combined Employers Registration Form

14. File Combined Employers Registration Form
Before issuing any Oregon paychecks, an employer is required to file a Combined Employers Registration form with the Oregon Department of Revenue. The Department of Revenue assigns the employer a business identification number (BIN). The employer then uses the BIN and a combined form for reporting and paying of payroll taxes and assessments administered by the Department of Revenue, the Employment Department, and the Department of Consumer & Business Services. This includes withholding and transit taxes administered by the Department of Revenue, unemployment insurance taxes administered by the Employment Department, and the Workers Benefit Fund assessment administered by the Department of Consumer & Business Services. Read the separate sections on withholding, unemployment insurance, and transit taxes to determine if wages you are paying are subject to these taxes. There are some differences in who is considered an employer for each tax so some wages may be subject to one tax but not another. A reference chart on pages 51-53 compares the tax liability for withholding, unemployment insurance, and transit taxes for certain types of wages. If you are required or elect to carry workers compensation insurance, you are also required to report and pay the Workers Benefit Fund assessment. If you are considered an employer for any of these taxes, complete the Combined Employers Registration form. The Combined Employers Registration form is available on the internet at http://www.dor.state.or.us. Specific instructions for completing the form are listed under How to register on page 31. For withholding, Tri Met, or Lane Transit tax information, contact: by mail: Oregon Department of Revenue PO Box 14800 Salem, OR 97309-0920 in person: 955 Center Street NE, Room 135 Salem, OR 503-945-8091
For unemployment insurance tax information, contact: Oregon Employment Department 875 Union Street NE Salem, OR 97310 503-947-1488 For Workers Benefit Fund assessment information, contact: Department of Consumer & Business Services Business Administration Division 350 Winter Street NE Salem, OR 97301-3878 503-378-2372 NOTE: Most corporations are required to file the Combined Employers Registration form because, for purposes of withholding and unemployment insurance taxes, corporate officers receiving any remuneration for their services to the corporation are considered employees of the corporation.
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Oregon Employer Information - Oregon Withholding Tax

Oregon Withholding Tax The Oregon Department of Revenue is responsible for administering the states withholding tax program. The department is aware that the many withholding laws, regulations, and requirements can be confusing for employers. The following information is intended to answer employers questions and concerns about withholding taxes. The department encourages you to call them at 503-945-8091, if you need additional information or help. The three components of Oregons withholding tax law are: All Oregon employers must withhold tax from employee wages at the same time employees are paid. For Oregon employers, due dates for paying state withholding tax are the same as the due dates for making federal withholding tax and FICA tax deposits. All Oregon employers must file combined tax returns in addition to making the required payments. These requirements are explained in the sections that follow. Who is an Employer? Are you an employer responsible for filing and paying withholding tax? Oregon law differs somewhat from federal law in determining this. According to Oregon law, an employer is defined as: A person or an organization for whom a worker performs a service as an employee, or A person who provides the tools and a place to work, or A person who has the right to hire and fire an employee, or A person who directs and controls the work of another person, or An officer or employee of a corporation who is responsible to comply with withholding tax provisions of the income tax law, or A member or employee of a partnership who is responsible to comply with withholding tax provisions of the income tax law.
An employer may be an individual, corporation, partnership, estate, trust, association, joint venture, or other unincorporated organization. Religious, educational, charitable, and social organizations can also be employers, even though such organizations may be exempt from paying tax. Government agenciesfederal, state, or localare required to withhold tax, file reports, and make payments the same as any other employer. The law does not specifically exempt any type of employer, but it does exempt certain types of wage payments. See Exempt wages on pages 33-34. Oregon requires some employers to withhold state tax even though they do not have to withhold federal tax. For example, a worker may be recognized by the federal government as an independent contractor. However, that same individual may be regarded by the state as an employee, and the workers employer is required to withhold state income tax. To determine payment dates for Oregon withholding tax, these employers need to figure their federal withholding tax as if they were required to withhold it. To avoid calculating federal tax, employers may elect to pay Oregon withholding tax after each payroll.
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Employers of Oregon Residents You must withhold tax from all wages paid to employees who are residents of Oregon, including wages earned outside of Oregon. Employers who pay wages to Oregon residents may be relieved of the duty to withhold where it can be shown to the satisfaction of the department that each employee will receive $300 or less in wages from that employer within a calendar year. The Oregon Department of Revenue cannot require withholding when the services are performed for an employer who does not have employees working in Oregon. However, we ask employers to register and withhold tax from wages paid to Oregon residents as a convenience to the employee. Employers of Oregon Nonresidents You must withhold tax from all wages earned by nonresident employees for services performed in Oregon, unless the earnings for the year 2002 will be $1,640 or less. Nonresident employees earning more than $1,640 in Oregon income are required to file an Oregon nonresident tax return. Nonresident employees may earn less that $1,640 in wages but still request withholding because they have additional Oregon income from other sources. Who is an Employee? An employee is anyone who performs services for another person or organization under the direction and control of the person or organization. Even when the employer gives the employee freedom of action, the person performing the service may still be considered an employee. What really matters is that the employer has the legal right to control the method and the result of the services, even though the employer may not always exercise that right. Corporate officers who are paid for working for the corporation are considered by the Oregon Department of Revenue and the Oregon Employment Department to be employees of the corporation. For information on independent contractors, see page 34. Oregon Business Identification Number (BIN) The 1989 Oregon Legislature passed a law that combines reporting and payment of all payroll taxes administered by the Oregon Department of Revenue and the Employment Department under one account number. Beginning in 1995, Workers Benefit Fund assessment was added. This business identification number (BIN) is used when reporting, paying, or making inquiries about your withholding, unemployment insurance, transit taxes and the Workers Benefit Fund assessment. Many other DOR programs also use the BIN. How to Register Oregon employers are required to register with the state of Oregon. Use the Combined Employers Registration (Form 150-211-055). This may be obtained from the Oregon Department of Revenue. They may be reached at 503-945-8091, or download the form, http://www.dor.state.or.us. You should register before issuing your first paychecks. Mail the registration to the address at the bottom of the form. Within three weeks, the department will assign an Oregon business identification number and send the forms you will need to pay and report payroll taxes. Employers must complete a new combined Employers Registration form if the structure of the business changes. Examples of changes are: sole proprietorship to a corporation or a partnership. May 2003 31

Taxable Wages Employers must report all taxable wages on Oregon combined reports. Wages subject to Oregon withholding tax include salaries, commissions, bonuses, wages, fees, or any other item of value paid to an individual for services as an employee. Property or services you give to an employee may also be taxable. Taxable items include: merchandise, stocks, bonds, room, board, or other considerations given in payment for the employees services. The value of meals or lodging furnished for the convenience of the employer is not taxable. Also exempt from withholding tax is a dwelling furnished to a minister or a rental allowanceif the allowance is used to rent or to provide a home for the minister. Also, an employer must withhold tax: On wages paid when an employer-employee relationship exists between a husband and wife. On wages paid to minors for bona fide personal services rendered to their parents. Reimbursable Expenses Reimbursable expenses paid to an employee are not subject to withholding tax, but you must specifically identify such payments when wages and reimbursement of expenses are in a single payment. If an employee received a definite hourly, weekly, or monthly salary, you must withhold tax on the entire amount, even though the amount includes an estimate of expenses. Only reimbursement based on actual expenses is exempt from withholding tax. Withholding on Distributions from IRAs, Annuities, and Compensation Plans The withholding of taxes from commercial annuities, employers, deferred compensation plans, and individual retirement plans is mandatory. However, an individual may elect to have no withholding unless the payments are wages. (ORS 316.189) The payee gives a completed Form W-4P showing Oregon withholding exemptions to the payer. The payer treats the payments as wages and figures Oregon withholding using the tax tables furnished by the Oregon Department of Revenue. The amount of withholding per payee must be $10 or more. The withholding rate for lump sum distributions is 8 percent. The payer will issue 1099Rs to payees at the end of the year. Payors of a plan must register to withhold; use the Registration Report, Withholding on IRAs, Annuities, and Compensation Plans, DOR publication number 150-211-054. If you have a business identification number for employee payroll, you will need a separate business identification number to report and pay withholding on your distributions. You can download the Registration Report from http://www.dor.state.or.us. What About Farm Workers? Employees who plant, cultivate, or harvest seasonal agricultural crops are subject to withholding once they earn $300 in a calendar year from a single employer. When the amount exceeds $300, the entire amount, including the first $300, is subject to withholding tax. A seasonal agricultural crop requires an annual, or lessthan-annual, season to mature. The crop is harvested at the end of its season. Seasonal agricultural crops include: a. b. c. d. e. Field and forage crops; Seed of grasses, cereal grains, vegetable crops, and flowers; Bulbs and tubers of vegetable crops; Any vegetable or fruit used for food or feed; and Holly cuttings harvested annually for Christmas sale. NOTE: Christmas trees are not considered seasonal agricultural crops.
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What About Farm Workers? continued Employers must withhold tax on all wages of regular farm employees, even though part of their work may involve planting, cultivating, or harvesting. Employers must withhold tax on all wages paid for such seasonal activities as canning or other food processing, logging, and sheepshearing. Those activities are not connected with planting, cultivation, or harvesting seasonal agricultural crops: Labor connected with the following is not considered seasonal agricultural crops: a. Forest products; b. Landscaping; c. Nursery stock as defined in ORS 571.005 unless planted, cultivated, and harvested within an annual period; d Raising, shearing, feeding, caring for, training, or management of livestock, bees, poultry, furbearing animals, or wildlife; and e. Christmas trees. Exempt Wages The withholding law exempts wages paid for certain kinds of services and labor. However, the wages may be subject to Oregon income tax. If you are not sure whether the wages you pay are exempt from withholding, call the Oregon Department of Revenue, at 503-945-8091, option 2. The following is a list of the kinds of services and labor specifically exempted. a. Domestic services in a private home, college club, sorority, or fraternity. Write clearly domestic on the wage statement (Form W-2, copy 1). This exemption does not apply to wages paid to an employee who performs both domestic and business services for the same employer. b. Casual labor that is not in the regular course of the employers business. You are required to withhold tax for substantial labor that is not related to your business, such as the construction of a private home. c. Persons temporarily employed as emergency forest firefighters. d. Employee trusts exempt from tax under provisions of the federal Internal Revenue Code. e. Seamen who are exempt from garnishment and attachment under Title 46 of the United States Code. f. Active service in armed forces. g. Employees of air carriers who earn less than 50 percent of their compensation in Oregon, unless they are Oregon residents. h. Certain employees engaged in interstate commerce, unless they are Oregon residents. i. Services real estate salespeople provide to real estate brokers. Effective January 1, 1984, Oregon follows federal law in permitting real estate brokers to treat salespeople as self-employed individuals. However, the broker and salesperson must have a contract that provides that the individual is not an employee for Oregon tax purposes. A real estate salespersons income from commissions on sales is not subject to withholding by the broker. j. Services provided by direct sellers of consumer products. See ORS 316.209. k. A seasonal farm laborer whose total annual income from a single employer is less than $300. When the amount exceeds $300, the entire amount, including the first $300, is subject to withholding tax. The employer may elect to withhold 2 percent of the total wages without considering any withholding exemptions. l. Duly ordained, commissioned, or licensed ministers of a church when performing the duties of the ministry, and members of a religious order when performing religious duties required by the order. m. Tips paid by the customer to the employee. All tips are subject to income tax. n. 401(k) contributions.
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Exempt Wages continued o. Independent contractors. Independent contractors are defined in ORS 670.600 and must meet the following standards: (1) The individual or business entity providing the labor or services is free from direction and control over the means and manner of providing the labor or services, subject only to the right of the person for whom the labor or services are provided to specify the desired results; (2) The individual or business entity providing labor or services is responsible for obtaining all assumed business registrations or professional occupation licenses required by state law or local government ordinance for the individual or business entity to conduct the business; (3) The individual or business entity providing labor or services furnishes the tools or equipment necessary for performance of the contracted labor or services; (4) The individual or business entity providing labor or services has the authority to hire and fire employees to perform the labor or services; (5) Payment for the labor or services is made upon completion of the performance of specific portions of the project or is made on the basis of an annual or periodic retainer; (6) The individual or business entity providing labor or services is registered under ORS Chapter 701 (construction), if the individual or business entity provides labor or services for which such registration is required; (7) Federal and state income tax returns in the name of the business or a business Schedule C or farm Schedule F as part of the personal income tax return were filed for the previous year if the individual or business entity performed labor or services as an independent contractor in the previous year; and (8) The individual or business entity represents to the public that the labor or services are to be provided by an independently established business. Except when an individual or business entity files a Schedule F as part of the personal income tax returns and the individual or business entity performs farm labor or services that are reportable on Schedule C, an individual or business entity is considered to be engaged in an independently established business when four or more of the following circumstances exist: (a) The labor or services are primarily carried out at a location that is separate from the residence of an individual who performs the labor or services, or are primarily carried out in a specific portion of the residence, which portion is set aside as the location of the business; (b) Commercial advertising or business cards as is customary in operating similar businesses are purchased for the business, or the individual or business entity has a trade association membership; (c) Telephone listing and service are used for the business that is separate from the personal residence listing and service used by an individual who performs the labor or services; (d) Labor or services are performed only pursuant to written contracts; (e) Labor or services are performed for two or more different persons within a period of one year; or (f) The individual or business entity assumes financial responsibility for defective workmanship or for services not provided as evidenced by the ownership of performance bonds, warranties, errors and omission insurance or liability insurance relating to the labor or services to be provided. How to Compute Withholding Tax To determine the amount of Oregon tax to withhold from employee wages: Use the wage bracket withholding tax tables prepared by the Oregon Department of Revenue. The current tables are effective January 1, 2002. There may be future revisions. Keep the most current tables, or Use the departments formula for computer payroll systems, which was effective January 1, 2002. This formula is available in the Oregon withholding tax tables.
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How to Compute Withholding Tax continued For information about the computer formula, call 503-945-8091. If you need a copy of the Oregon withholding tax tables, write to: Publications, Oregon Department of Revenue, 955 Center St. NE, Salem OR 97301-2555. Tax tables are also at: http://www.dor.state.or.us. Allowances When figuring withholding tax, use the number of allowances claimed by an employee on IRS Form W-4 or W-4P. Oregon does not have its own withholding allowance form. Use a copy of the IRS forms for Oregon purposes. If an employee did not file a Form W-4 or W-4P, use single -0- allowances. Do not use the allowances on Form W-4 if: The employee claims exempt status for state withholding tax only, or The Oregon Department of Revenue or the IRS tells you not to use the allowances. NOTE: The law requires employers to send a copy of Form W-4 to the Oregon Department of Revenue, PO Box 14560, Salem, OR 97309, within 20 days after receiving it if the employee claims: More than 10 allowances for federal or state purposes, or Exemption from withholding, and the employees income is expected to exceed $200 per week for both federal and state purposes, or Exemption from withholding for state purposes but not federal purposes. Voluntary Withholding for Civil Service Annuitants Voluntary withholding for Civil Service annuitants. Civil Service annuitants who prefer voluntary withholding of state income tax from their retirement pay may make the request in writing to: Office of Personnel Management PO Box 961 Washington, DC 20044-0001 Or, civil service annuitants may call 1-800-409-6528 (toll-free) and use the Interactive Voice Response unit to execute the request. The amount of withholding per annuitant must be $10.00 or more. Voluntary Withholding for Retired Members of the Armed Services Members of the armed services may elect to have state income taxes withheld from their retirement pay. State taxes will be withheld upon request to the appropriate retirement pay office of a service branch. The amount of withholding per retiree must be $10 or more per payment period. For further information, refer to OAR 150-316.193, or call 503-945-8100. Payment of delinquent taxes owed to the Department of Revenue may be made by bank card or debit card.
Common Pay Agent Oregon does not recognize common pay agent reporting.
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Oregon Employer Information - Oregon Withholding Tax Payments

Payment Due Dates Due dates for paying Oregon withholding tax are the same as due dates for depositing your federal tax liability. Guidelines for Oregon withholding payment due dates
If your total federal tax liability is:
Oregon withholding tax payments are due:

within 30 days after the end of the quarter
less than $2,500 for the quarter $50,000 or less in the lookback period* More than $50,000 in the lookback period*
by the 15th of the month following payroll
Semiweekly Deposit Schedule
If the day falls on a: Wednesday, Thursday and/or Friday Saturday, Sunday Monday, and/or Tuesday
Then pay taxes by: the following Wednesday
the following Friday
$100,000 in a single pay period*
within one banking day
* Lookback period is the 12-month period that ended the preceding June 30. The lookback period for agricultural employers is the calendar year prior to the calendar year just ended. Example: July 1, 2001, through June 30, 2002, for the 2003 calender year. Payment Address Send payments, with Form OTC (Oregon Combined Tax Payment Coupon), directly to the Oregon Department of Revenue, PO Box 14800, Salem, OR 97309-0920. Send a coupon with every payment you make, including payments made with reports. Alternate Payment Method Multistate employers who believe that federal withholding methods create an undue burden for them that is not shared by most other similar employers may request a different method of withholding tax payments. Requests need to be submitted in writing, to the Withholding Manager, Department of Revenue, 955 Center Street NE, Salem, OR 97301-2555. Request shall contain the following information: business name of employer, Oregon business identification number, nature of burden, remedy requested, and proposed effective date of modified withholding method. No alternative withholding method shall be used before the Department of Revenue has approved the request in writing and has designated the effective date of the change. Refer to ORS 316.191. 36 Oregon Business Guide

Payments by Bank card Visa and MasterCard are the only acceptable bank cards or debit cards. Refer to OAR 150-305.221 for more information. Electronic Funds Transfer (EFT) Payments for combined payroll taxes can be made using the Department of Revenues Electronic Funds Transfer (EFT) program. You can initiate payments via a touch-tone telephone, a secure Internet site, or through your financial institution. You must pay your Oregon combined payroll taxes electronically if you pay your federal tax liability electronically. If you do not meet the federal requirements for mandatory participation in the EFT program, you may participate voluntarily. Before making EFT payments, a business must have an authorization agreement filed with the Department of Revenue. Information and authorization agreements are available at http://www.dor.state.or.us/withhold/ bus.html or by calling the EFT help line at 503-947-2017. Reporting Requirements You must file Oregon combined tax reports by the due date as long as you maintain an account as an employer with the Oregon Department of Revenue even if you had no payroll for the reporting period. Returns must be filed if you had payroll, even though there may not have been any tax withheld. Most Oregon employers are required to file quarterly, but some agricultural employers can file annually. Here is how to determine which filing requirement applies to your situation: Quarterly reporting due dates. Due dates are the same for your Oregon report as for the federal quarterly return (federal Form 941): Quarter 1st Jan-Feb-Mar 2nd Apr-May-Jun 3rd Jul-Aug-Sep 4th Oct-Nov-Dec Ending March 31 June 30 September 30 December 31 Due date April 30 July 31 October 31 January 31
Quarterly reporting options. Every February, quarterly reporting packets are mailed to all registered employers that are not using Oregon Tax Employer Reporting, OTTER. OTTER - You can file by e-mail or diskette using the computer-based OTTER software program. The software is free; order by calling 503-947-1488 or by downloading from http://www.emp.state.or.us/tax. SETRON - Web-based Secure Employer Tax Reporting OnLine (SETRON) allows any employer to report over the internet. SETRON is on the Employment Departments Web site at: http://www.emp.state.or.us/tax. Telephone (IVR) - If you have no payroll or subject hours to report for a particular quarter, you can file a no payroll/no hours worked report by telephone 24-hours-a-day, 7-days-a-week. Call 503-378-3981. The system does not issue a confirmation number and only accepts your report after you complete the entire call.
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Reporting Requirements continued Quarterly filing requirement. With the exception of agricultural and domestic employers who meet the following requirements for annual filing, all employers must file the Oregon Quarterly Combined Tax Report (Form OQ) or the Oregon Combined Payroll Tax Reporting Program diskette each quarter. Most Oregon employers meet the quarterly filing requirement. Annual filing requirement. Agricultural employers who file federal Form 943 (Employers Annual Tax Return for Agricultural Employees) can also file their Oregon withholding returns annually. File Form WA (Oregon Annual Withholding Tax Return for Agricultural Employers). It is due by January 31 following the tax year. For employers in this category, withholding tax payments are due the same day you make your FICA payment or your federal tax payment, regardless of the amount of your Oregon withholding tax. Employers who are subject to unemployment or transit taxes, or the Workers Benefit Fund assessment, must also file Form OQ each quarter. If an agricultural employer has any employees who are not classified as agricultural, withholding for all employees must be reported quarterly. Domestic employersOregon income tax withholding is not required for household employees. However, Oregon income tax can be withheld if the household employee asks you to withhold and you agree. Domestic employers shall file Form OA (Oregon Annual Tax Report for Domestic Employers). Withholding tax payments and Form OA are due January 31 following the tax year.
Annual Withholding Reconciliation Report All Oregon employers must file an Oregon Annual Withholding Reconciliation Report (Form WR). This report is due by the last day of February following the tax year. If you stop doing business during the year, this report is due within 30 days after your final payroll. NOTE: W-2s and 1099Rs are no longer required to be sent to the Department of Revenue. However, the Department of Revenue may request these forms from an employer to reconcile accounts. W-2 Forms Employers are required to prepare the annual wage and tax statement (Form W-2) on the combined six-part federal-state form or an approved substitute form. Employers must give each employee three copies of the W-2 Form no later than January 31 of the following year. If an employee leaves the service of an employer before the close of the calendar year and the employee requests a copy of the wage statement, the employer must provide that wage statement to the employee within 30 days after the last payment of wages. If you need to correct a W-2 Form after it has been distributed, you must distribute the corrected statement and all copies the same way you distributed the original. If a W-2 Form is destroyed or lost, give the employee a substitute copy clearly marked Reissued by employer. Reporting 1099 Information Employers are no longer required to file an information return for Oregon. We receive 1099 information from the IRS. Oregon Form 96 is obsolete.
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Penalty and Interest Employers act as trustees for their employees withheld taxes. As a trustee, you are subject to the same penalty and interest that apply to individuals for late payments or failure to file personal income tax. To avoid penalty and interest, make your withholding payments when they are due (see table on page 36) and file your Oregon combined tax reports by the due date (see page 37).
Penalty
You will be charged interest on any remaining tax not paid by the due date. Interest rates are subject to change annually by the Department of Revenue. Late Filing
You will be charged a 5 percent late payment penalty on any unpaid tax after the due date of the payment You will be charged an additional 20 percent penalty on any tax due as of the due date and if Form OQ is
filed more than three months late. You will be charged a 100 percent penalty on any tax due if Forms OQ are not filed for three years in a row. Failure to File If an employer does not file a withholding return, the Oregon Department of Revenue will assess tax based on the best information available for the period. Penalty and interest will be charged on the amount assessed. The department may also issue a warrant and garnishment to enforce collection. The amount then becomes a lien against any property you own or purchase in the future. Dishonored Checks A penalty on dishonored checks shall be assessed in the amount of $25.00 or three times the amount of the check, whichever is greater, but not to exceed $500.00. This is in addition to all other penalties. This penalty shall be imposed on a dishonored check if a prior dishonored check has been tendered. Bonding Requirements An employer who becomes delinquent in payment of withholding tax may be required to post a bond in an amount equal to the amount of tax due for one year. For further information on bonding requirements, refer to OAR 150-316.164. The Department of Revenue has the authority to revoke business licenses of companies or individuals who refuse to comply with filing and payment requirements. Liability Employers are liable for the tax required to be withheld from wages. Corporate officers, partners, or responsible employees may be personally liable for any withholding tax a corporation or partnership fails to pay. A lender, surety, or other person supplying funds to an employer to pay employee wages also may be liable for the withholding tax under certain conditions. Forms The Oregon Department of Revenue and the Oregon Employment Department regularly mail forms to registered employers. Each form identifies an employers reporting period, business identification number, and return due date. Lack of forms is not a good reason for failure to file a return or failure to pay the tax by the due date. If you need forms, call the Oregon Department of Revenue at 503-945-8091. You may also file your reports by diskette. You can file all four Combined Tax Forms this way. To obtain information about reporting by diskette, call the Oregon Employment Department at 503-947-1544. May 2003 39
Oregon Employer Information - Oregon Unemployment Tax

Final Payroll If you have stopped doing business or no longer have employees, you can close your Oregon withholding tax account. Fill out the Change in Status Report included in your quarterly reporting booklet and mail it to: Employment Department, 875 Union Street NE, Salem, OR 97311-0030. Keep Your Records You must keep all payroll records (including withholding tax information) for at least five years after you file the required reports. Need More Information? If you have questions about Oregon withholding tax payments or returns, call or write: Oregon Department of Revenue Business Division PO Box 14800 Salem, OR 97309-0920 503-945-8091 Information is also available at: http://www.dor.state.or.us. Department of Revenue Offices Office Address Bend ................951 SW Simpson, Ste. 100 Eugene ............1600 Valley River Dr, Ste. 310 Medford ..........24 West 6th Street Newport ..........119 NE 4th St., Ste. 4 North Bend .....3030 Broadway Office Address Pendleton ........700 SE Emigrant Ave, #310 Portland ...........800 NE Oregon St, Ste. 505 Salem Main .....955 Center St, Room 135 Salem Field ......4275 Commercial St. SE ........................ Building 2, Ste. 180 Tualatin............ 6405 SW Rosewood St., A
Oregon Unemployment Insurance Tax

Who Pays This Tax?
The entire cost of unemployment insurance is supported by employers. It is based on the tax levied on their subject payrolls. Certain nonprofit organizations and governmental units may reimburse instead of paying the tax. Funds collected by the Employment Department to finance unemployment insurance are designated by law as taxes. All taxes collected from Oregon employers are deposited in a trust fund. The taxes are used exclusively for the payment of benefits to unemployed workers. Who is an Employer? Any individual or organization with employees working for pay is an employing unit. Employing units which meet any of the following criteria are employers for purposes of Employment Department law: 1. Employers, other than agricultural or domestic employers, who: Pay $225 or more to employees in a calendar quarter, or Have one or more employees in each of 18 weeks during a calendar year. 2. Employers who employ agricultural workers, and: Pay $20,000 or more in cash wages in a calendar quarter, or Have 10 or more employees in each of 20 weeks during a calendar year. 3. Employers who employ domestic workers in a personal residence and pay $1,000 or more in cash wages in a calendar quarter. 40 Oregon Business Guide
Oregon Employer Information - Oregon Unemployment Insurance Tax

Who is an Employer? continued Employers responsibilities are to: Register with the Employment Department by completing and sending a Combined Employers Registration Report to the Department of Revenue. File quarterly reports. Employers who employ domestic workers file annual reports. Pay taxes when due. Keep adequate payroll records. Inform the Employment Department of any change in status.
Who is an Employee? An employee is any person employed for pay under any contract of hire unless the services are specifically excluded from coverage under the law. The definition of employee for this tax comes from Oregon Revised Statutes (ORS) 657 which differs from common law and federal law. Individuals who meet the statutory definition of an independent contractor are not employees and their compensation for services is not taxable wages. The definition of an independent contractor recognized by the Employment Department, Department of Revenue, and Construction Contractors Board is Oregon Revised Statutes (ORS) 670.600 and is printed on page 34 of this publication. ORS 670.600 lists eight standards that must be met to be considered an independent contractor. Individuals who do not meet all eight of the standards are employees and their compensation for services is taxable wages. If you are uncertain whether to report a worker, call your nearest Employment Department tax office. A tax auditor will answer questions about your individual case. The offices are listed on page 44. Taxable Payroll For calendar year 2002, you pay unemployment insurance tax on the first $25,000 of each employees wages. This amount is determined by law and may change from year to year. Tax Rates In 2002 the new employer rate is 3.0 percent. Every new employer pays at this rate for a prescribed period of time. At a later date, employers will be assigned a rate under the state experience rating provision. For this year, experience the rates range from 0.9 percent to 5.4 percent. The lower the amount of unemployment insurance benefits charged to the account, the lower the tax rate may be. A new or existing employer who acquires the entire employing enterprise of another employer will inherit that employers tax rate experience. An employing unit that acquires an identifiable and segregable portion of another employing unit may apply for a partial transfer of employment experience. Application forms for partial transfer are available upon request. Completed applications must be filed within sixty days after the date of transfer to be timely. A quarterly statement of benefit charges made against an employers account will be mailed upon request. Employers may help keep their tax rate down by: Giving information about the cause for separation of former employees who file benefit claims, and Appearing at hearings on disputed claims.
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Nonprofit Organization Nonprofit organizations are subject to the Employment Department law. Each account is established as taxpaying. If the organization qualifies under Section 501(c)(3) of the Internal Revenue Code, it may choose to reimburse the fund for the amount of benefits paid instead of paying tax on its payroll. A nonprofit organization which qualifies and elects to reimburse must post a bond or deposit with the Employment Department in an amount determined by statute. Organizations may shift between taxpaying and the reimbursing basis every two years. If you would like more information about differences between the two methods, you should contact a tax auditor in your area. Religious Organizations Religious organizations including schools, churches, and religious orders that qualify as subject employers under Employment Department law must pay state unemployment tax on compensation paid to lay employees and clergy. As a nonprofit organization, religious organizations may elect to reimburse the fund instead of paying taxes if they qualify under 501(c)(3). Corporations Corporations must pay unemployment insurance tax on all compensation for services, including compensation received by corporate officers and shareholders. S corporations and professional corporations (PCs) are taxed exactly the same as other corporations for unemployment insurance purposes. Family-owned corporations may elect not to pay unemployment insurance taxes on corporate officers who are directors, have a substantial ownership interest and are members of the same family. The election must be in writing and will be effective the first day of the calendar quarter in which the request is submitted, if approved. Disregarded Entities If a business entity is disregarded for federal tax purposes, it is deemed to be the same employing unit as its parent organization for unemployment compensation tax purposes. This means that a disregarded entity is treated as a branch or division of its parent organization. Therefore, payroll applicable to a disregarded entity must be reported as the parent organizations information for unemployment insurance purposes. Limited Liability Companies and Limited Liability Partnerships Employment Department law excludes limited liability companies (LLCs) and limited liability partnerships (LLPs) from paying unemployment insurance tax on compensation paid to their members and partners. Government Units Political subdivisions reimburse the Employment Department for any benefits paid that are based on wages paid by the governmental unit. However, they may choose to pay taxes instead of reimbursing. Local governments may shift between reimbursing and the taxpaying basis every two years. A political subdivision may request its reimbursement amount be paid via the Local Government Employer Benefit Trust Fund. A political subdivision selecting this option must pay into that fund quarterly. The rate of payment generally will be based on the employers experience, ranging from a minimum of 0.1 percent to a maximum of 5 percent of gross payrolls. 42 Oregon Business Guide

Government Units continued State agencies and departments are required to reimburse the Employment Department for any benefits paid based on wages paid by the state. There is no option to be on a taxpaying basis for these employers. No bond or deposit is required of governmental units on the reimbursement plan. Reports Due Each Quarter Employers (except domestic employers) are required to file a combined report quarterly with the Department of Revenue, Employment Department, and Workers Compensation Division. At minimum, this will require filing an Oregon Quarterly Tax Report (Form OQ) and an Employee Wage Detail Report (Form 132). Reports are due by the last day of the month following the end of each calendar quarter. Forms necessary for reporting are mailed to employers each year. Employers can file quarterly reports electronically. Electronic filing is far more efficient, accurate, and less time consuming than paper filing. It can be done using your own computer, using the Internet, or using the telephone. Computer based filing is done through e-mail or diskette using the Oregon Tax Employer Reporting software (OTTER). The software is free, user friendly, and extremely popular with both large and small employers. Data can be imported from separate payroll programs directly in to the electronic reporting format or copied from one quarter to the next. The software can be ordered by calling 503-947-1488 or from the internet at http://www.emp.state.or.us/tax. Employers already using the program will receive periodic updates. Web based reporting (Secure Employer Tax Reporting Online or SETRON) allows any employer with up to 50 employees to report over the Internet. Because it is Internet based, any employer can report electronically regardless of the computer used. SETRON reporting can be completed using the same web site listed above. Those employers who have no payroll to report for a particular quarter can file a No Payroll report by telephone, 24 hours a day, 7 days a week. The telephone number is 503-378-3981. Information required on reports includes: mid-month employment for each month of the quarter, gross and taxable payroll, and taxes due. Also required are each employees Social Security number, name, number of hours in the quarter in which service was performed, and wages paid in that quarter. Reimbursing employers are not required to include the taxable payroll and tax-due items, but must still submit reports listing employees and total payroll. Payment of the total amount due on the combined report must be sent to the Department of Revenue with an Oregon Tax Coupon (OTC) by the due date of the report. Domestic Employer Reports Domestic employers are now required to file annually instead of quarterly. The same information will be required as listed under reports due each quarter, only it will be incorporated into one report due annually on January 31st. Forms necessary for reporting are mailed to the employers by the Employment Department. Delinquent Taxes and Late Reports Employers who file reports after the due date, who file incorrectly formatted reports, or who fail to pay taxes in a timely manner may be subject to various penalties. These penalties are in addition to interest and taxes owed. The reimbursement payments are due by the last day of the month following the month in which the statement is mailed. Those employers on the reimbursing basis are subject to the same penalties and interest as taxpaying employers. May 2003 43

Change in Organization or Sale Employers must notify the Employment Department of any change in ownership of a business. Changes included in this requirement are sale of a business, dissolution of a partnership, formation of a new partnership, discontinuance of a corporation, dissolving of a corporation, death of an owner or partner, closing of a business, or any other type of change. The Change in Status Report at the end of the employers report packet should be completed and mailed in when a change of this nature occurs. Employer Ceases to be Subject to UI Tax An employer who is subject to UI Tax and ceases to have sufficient employment or payroll to meet the requirements of ORS Chapter 657 may file an application to close the account and discontinue reporting and paying UI tax. The exemption will continue until the employer again qualifies as an employer as defined in ORS 657. Seminar Available A seminar, Fast Track Tax Facts, can be scheduled for groups of employers or preparers. The seminar is designed to increase knowledge of Unemployment Insurance Tax and combined reporting with the Department of Revenue and the Workers Compensation Division. For more information on scheduling this seminar for groups, call 503-947-1544. State Employment Offices
Employment Department Tax Offices Central Office: 503-947-1488 TDD: 711 FAX: 503-947-1487
Office
Phone
Office
Phone
Albany ........................................541-967-2171 Astoria .......................................503-325-4821 Beaverton ..................................503-626-2151 Bend ...........................................541-388-6086 Coos Bay/North Bend ...............541-756-8469 Corvallis .....................................541-757-4261 Eugene .......................................541-686-7797 Grants Pass ................................541-474-3151 Gresham .....................................503-666-1985 Hillsboro .....................................503-681-0222 Hood River .................................541-386-6020 Klamath Falls .............................541-883-5628 La Grande ..................................541-963-7111
McMinville .................................. 503-434-7574 Medford ...................................... 541-776-6067 Newport ...................................... 541-574-2303 Ontario ........................................ 541-889-2710 Oregon City ................................ 503-657-2002 Pendleton .................................... 541-276-9050 Portland-Downtown .................... 503-731-4276 Portland-North ............................ 503-280-6013 Redmond ..................................... 541-548-8196 Roseburg ..................................... 541-440-3344 Salem-Field Office ...................... 503-378-3352 Salem-Central Office .................. 503-947-1488 Woodburn .................................... 503-982-2817
44
Oregon Employer Information - TriMet and LTD Transit Taxes

Transit District Taxes
General Information These tax programs are administered by the Oregon Department of Revenue for the Tri-County Metropolitan Transportation District (TriMet) and the Lane County Mass Transit District (LTD). They provide revenue for mass transit (ORS Chapter 267). Transit payroll (excise) tax is imposed on nearly every employer who pays wages for services performed in the TriMet or LTD districts. A self-employment tax is imposed on selfemployment income earned within the TriMet and LTD districts. If you are self-employed and an employer, you might be subject to both taxes. Services Areas The TriMet district includes parts of three counties in the Portland area: Multnomah, Washington, and Clackamas. LTD serves the Eugene-Springfield metro area, and the district is approximately two-thirds of Lane County. TriMet Transit District ZIP Code List To help determine if you have employees in the TriMet Transit District, use the following ZIP Code List. Some ZIP codes may not coincide with the district boundaries. For TriMet boundary questions, call 503-962-6466. ZIP Codes completely in TriMet Transit District 97005 97006 97008 97024 97027 97030 97034 97035 97036 97060 97062 97068 97201 97202 97203 97204 97205 97206 9720997225 97266 97267 97268 ZIP Codes Partially in TriMet Transit District 97007 97009 97013 97015 97019 97022 97023 97045 97055 97060 97070 97080 97113 97116 97123 97124 97140 97231 97236 Lane Transit District ZIP Code List Use this list as a guideline to help determine if you have employees in the Lane Transit District. Some ZIP codes may not coincide with the district boundaries. For Lane Transit District boundary questions, call 541-682-6100. Alvadore Blue River Coburg Cottage Grove Creswell Dexter Elmira Eugene Eugene Eugene May 2003 97409 97413 97401 97424 97424 97431 97437 97401 97402 97403 Eugene Eugene Fall Creek Finn Rock Goshen Jasper Junction City Lancaster Leaburg Lowell 97405 97440 97438 97488 97401 97438 97448 97448 97489 97452 Maywood McKenzie Bridge Pleasant Hill Springfield Springfield Thurston Trent Veneta Vida Waterville 97413 97413 97455 97477 97478 97482 97431 97487 97488 97488 45 97227 97229 97230 97232 97233 97258

Who Must File and Pay?
All employers who are paying wages in the TriMet or LTD districts and who are not exempt (see Exempt Payroll below) must register and file with the Oregon Department of Revenue. City, county, and local government units are subject to TriMet payroll taxes, if located or performing services within the TriMet boundaries. Payments to deferred compensation plans are subject to TriMet and Lane Transit District Taxes (ORS 267.380(4)(a)). The specific types of payments that are subject include:
Contributions to a Simplified Employee Pension (SEP) made at the election of the employee. Payments for the purchase of IRC section 403(b) annuities under salary reduction agreements. Contributions to 401(k) retirement plans made at the election of the employee, including employermatched contributions. Pick-up payments to governmental retirement plans under salary reduction agreements. Amounts deferred under governmental deferred compensation plans. Any amount deferred under a nonqualified deferred compensation plan. Payments to an IRC 408 Individual Retirement Account under salary reduction agreements.
Exempt Payroll
The following are exempt from TriMet and LTD payroll excise taxes:
Federal credit unions. Public school districts. Internal Revenue Code Section 501 (c)(3) - nonprofit and tax exempt institutions, except hospitals. All foreign insurers are exempt. All insurance adjusters, agents, and agencies, as well as their office support staff, whether representing foreign or domestic companies are also exempt. Domestic service in a private home. Casual labor. Services performed outside the transit district. Seamen who are exempt from garnishment. Employee trusts that are exempt from taxation. Tips paid by the customer to the employee. Federal government units.
The following are exempt from LTD, but subject to TriMet payroll excise taxes:
Public education districts. Public special service and utility districts. Port authorities. Fire districts. City, county, and other local government units.
Wages paid to employees whose labor is solely connected to the planting, cultivating, or harvesting of seasonal agricultural crops are also exempt. NOTE: For definitions of employer, employee, and wages see pages 30-33.
46

How to Register
If you are subject to the tax, complete the transit tax section of the Employers Combined Registration Report. It is the same form you use for registering as an employer for withholding and unemployment insurance tax purposes. Complete the form and mail it to: Oregon Department of Revenue, PO Box 14800, Salem, OR 97309-0920. The Department of Revenue will notify employers of their TriMet or LTD account number. Your transit tax account number will be the same business identification number you use for Oregon Combined Tax Reports.
How to Figure the Transit Excise Tax

The transit tax is imposed directly on the employer. It is imposed only for the amount of gross payroll paid for services performed within the TriMet or Lane Transit districts. Multiply the gross taxable payroll by the current tax rate. Current tax rates are shown on the TriMet/LTD portion of the Oregon Quarterly Combined Tax Report.
When and How to File

Report and pay transit taxes quarterly. The Department of Revenue will send Oregon combined reports to employers that are subject to the tax. Notify the Department of Revenue immediately of any change of address.
Penalty and Interest

Penalty and interest for delinquent transit tax are the same as the penalty and interest for withholding tax. You will be charged a 5 percent delinquency penalty if you do not file by the due date. You will be charged an additional 20 percent penalty if your return is not filed within three months of the due date. You are also charged interest at the current rate on the unpaid tax, from the due date of the return. For more information about penalty and interest rates, see Penalty and Interest page 39.
How to Close Your Transit Tax Account

If you have stopped doing business or no longer have employees working within the TriMet or Lane Transit districts, you can close your Oregon TriMet or Lane Transit tax account. Fill out the Change in Status Report included in your quarterly reporting booklet and mail it to: Oregon Department of Revenue, P.O. Box 14800, Salem OR 97309-0920.
For More Information

For more information about the TriMet or LTD excise taxes, contact the Department of Revenue in Salem at 503-945-8091.
May 2003
47
TriMet & Lane County Metropolitan Transit District Self-Employment Tax

Who Must Pay This Tax?
Anyone who has self-employment earnings from business or service activities carried on in the TriMet or Lane Transit district must pay this tax. A partnership as an entity is not subject to the Transit District Self-Employment tax. However, each partner is subject to the Transit District Self-Employment tax and the partnership may file and pay for all the individual partners.
For More Information

For more information on TriMet or LTD Self-Employment Tax, call Tax Help at the Oregon Department of Revenue, 503-378-4988. Or, go to our Web page at: http://www.dor.state.or.us. To order forms, write to: Forms, Oregon Department of Revenue P.O. Box 14999 Salem, OR 97309-0990
48
Oregon Employer Information - TriMet Transit District Map
May 2003
49
Oregon Employer Information - Lane Transit District Map
Map Provided by Lane Transit District

50 Oregon Business Guide
Oregon Employer Information - Tax Liability Reference Chart

The tables on pages 51-53 are provided as a quick reference for determining the tax liability for state unemployment tax, state withholding tax, and transit district tax for certain types of wages. WAGES PAID FOR
Agricultural Labor
STATE UNEMPLOYMENT INSURANCE TAX

Subject if the employer paid cash wages of $20,000 or more in any calendar quarter to workers doing agricultural labor, or Subject if the employer has 10 or more workers doing agricultural labor on 20 days during a calendar year, each day being a different week. Reported quarterly.
STATE WITHHOLDING TAX

A farm laborer whose total annual income from a single employer is less than $300 is not subject. When the amount exceeds $300, the entire amount, including the first $300, is subject to withholding. The employer may elect to withhold 2 percent of the total wages without considering any withholding exemptions.
TRANSIT TAX FOR WAGES PAID IN DISTRICT

Wages paid for such seasonal activities as canning or other food processing, logging, and sheepshearing which are performed within the transit districts are subject. Wages paid to employees whose labor is solely connected to the planting, cultivating or harvesting of seasonal agricultural crops are exempt.
See ORS 657.045 for the definition See What about farm workers? on of agricultural labor. page 32-33.
Cafeteria Plans
Payments made through cafeteria Not subject plans are considered wages unless specifically excluded under Oregon law. See other specific payment references made in this table.
Not subject
Corporation (compensation)
Corporations must report and pay taxes on compensation for services including services performed by corporate officers and shareholders.*
*For exception see page 42.
Compensation for services is subject to withholding, including services performed by corporate officers and shareholders.
Compensation for services is subject to transit taxes, including services performed by corporate officers and shareholders.
S corporations and professional S corporations and professional corporations are treated the same as corporations are treated the same as other corporations. other corporations. Dividends are reportable to the extent they are reasonable compensation for services. Dividends are not subject to withholding.
S corporations and professional corporations are treated the same as other corporations. Dividends are not subject to transit taxes.
Dismissal/Severance Subject Pay
Subject
Subject
Domestic Service in A private Home, Fraternity, or Sorority
Subject if employer paid cash wages of $1,000 or more in any calendar quarter to workers doing domestic service. Reported annually. See ORS 657.050 for the definition of domestic service.
Not subject However, Oregon income tax can be withheld if the household employee asks you to withhold and you agree.
Not subject
May 2003
51

WAGES PAID FOR STATE UNEMPLOYMENT INSURANCE TAX STATE WITHHOLDING TAX
Subject

Subject
Family Employee: Not Subject (ORS 657.060) son or daughter under 18 employed by parent; spouse employed by spouse; parent employed by son or daughter. Fishing (Commercial) Exempt if crew is normally fewer than 10 and paid a share of the catch or share of the proceeds from the sale of the catch.(ORS 657.053)
Employees engaged in fishing as defined by Title 46 of the United States code, are exempt. (ORS 316.162(2)) Not subject if self-employed and paid solely by commissions.
Insurance Agents or Not subject if paid solely by Solicitors commissions. (ORS 657.085)
Employees engaged in fishing as defined by Title 46 of the United States code, are exempt. (ORS 316.162(2)) Only domestic insurance companies (insurers actually underwriting policies), health care service contractors, and motorist service clubs are subject. All foreign insurers are exempt. All insurance adjusters, agents and agencies, as well as their office support staff, whether representing foreign or domestic companies, are also exempt.
Interstate Common Transportation performed by motor Carriers (for hire) vehicle for a for-hire carrier and who personally operates, furnishes, and maintains the equipment and provides the services, is exempt. In addition, the person who furnishes and maintains the vehicle is deemed to be the employer of others who operate it. (ORS 657.047)
Nonresident employees engaged in interstate commerce, (e.g., railroad, trucking, or bus employees) having regularly assigned duties in more than one state are not subject to Oregon tax. Nonresident employees of interstate common air carriers having regularly assigned duties on aircraft are not subject to Oregon tax if scheduled flight time in Oregon is less than 50% of the total scheduled flight time. a. Meals--subject unless furnished for employers convenience and on the employers premises. b. Lodging--subject unless furnished on employers premises, for the employers convenience and as condition of employment. Not subject
Nonresident employees engaged in interstate commerce, (e.g., railroad, trucking, or bus employees) having regularly assigned duties in more than one state are not subject to Oregon tax. Nonresident employees of interstate common air carriers having regularly assigned duties on aircraft are not subject to Oregon tax if scheduled flight time in Oregon is less than 50% of the total scheduled flight time. a. Meals--subject unless furnished for employers convenience and on the employers premises. b. Lodging--subject unless furnished on employers premises, for the employers convenience and as condition of employment. Not subject
Meals and lodging
Subject except when paid for agricultural labor or domestic service, or for employee travel expenses excluded under OAR 471-31-020.
Newspaper Carrier Not subject (ORS 657.080) Delivering to Customers Real estate Broker, Not subject if paid solely by or commissions. Principal Real Estate (ORS 657.085) Brokers.
Oregon follows federal law in If not subject to state withholding, permitting real estate salespeople to not subject to transit taxes. be treated as self-employed individuals if they have a contract with a broker that provides that the individual will not be treated as an employee with respect to the services for Oregon tax purposes. Their income from commissions on sales is not subject to withholding by the broker.
52

WAGES PAID FOR
Religious Organizations Including Churches
STATE UNEMPLOYMENT INSURANCE TAX

Pay for services (including fair market value of housing) to lay employee or clergy by a religious organization including a church or religious order is subject. (OAR 471-31-090)
STATE WITHHOLDING TAX

Duly ordained, commissioned, or licensed ministers of a church when performing the duties of the ministry, and members of a religious order when performing religious duties required by the order are exempt.

Not subject
Retirement and Pension Plans: a. Employer contributions to individual retirement account. b. Employer contributions to a qualified cash or deferred compensation plan. c. Retirement and pension payments. d. Contributions to deferred compensation plans at election of employee Securities Salesperson
Subject
Not subject
Not subject
Employer-paid contributions to 401(k) plans are excluded.
Not subject
Not subject unless employer is making a matching 401(k) contribution. See page 46.
Not subject if from qualified plan. (ORS 657.115) Employee-paid contributions to 401(k) plans are subject.
Not subject if qualified plan. Not subject
Not subject Subject
Not subject if paid solely by commissions. (ORS 657.085)
Subject
Subject
Sickness or injury payments: a. Workers compensation b. Employer payment of sick pay c. Third-party payment of sick pay Tips Not subject Subject Subject Not subject Subject Not subject Not subject Subject Not subject
Subject, for all tips reported in writing to employer. (ORS 657.117)
Tips paid by the customer to the employee are not subject to withholding tax. Tips paid by the customer to the employer who then distributes the payment to the employees are subject to withholding. All tips are subject to income tax.
Not subject unless paid by the customer to the employer who then distributes the payment to employees.
Wages
Wages are subject when paid and include all cash and non-cash remuneration for employment. Agricultural and domestic wages include only cash.
Employers must withhold tax from Subject employees wages at the same time employees are paid. Draws-subject at time of payment.
May 2003
53
Oregon Employer Information - Federal Withholding Tax

15. Obtain Federal Tax I.D. Number
Employer Identification Number Every sole proprietor with employees, partnership, corporation, or other employing entity must obtain a federal identification number (EIN). For information on obtaining an identification number, see page 23 of this guide.
16. Obtain Employee Withholding Exemption Certificates (W-4 Form)

W-4 Form Employers are required to have each employee complete a W-4 Form. The information on this form is necessary to determine the amount of withholding tax for the employee. For a supply of forms, contact your local Internal Revenue Office or call toll-free: 1-800-829-3676. Internal Revenue Service The federal tax information provided in this publication is by no means all-inclusive. For complete requirements and responsibilities, contact the Internal Revenue Service. Check your local phone directory for the IRS office in your area. You may also contact: Internal Revenue Service 1220 SW 3rd Avenue Portland, OR 97204 For tax assistance, call: 1-800-829-1040. To order forms or publications, call: 1-800-829-3676. Federal Identifying Number Every sole proprietor with employees, partnership, corporation, or other employing entity must obtain a federal identifying number. For information on obtaining an identification number, see page 23 of this guide. Who Must Withhold Federal Taxes? The criteria for defining an employer for federal purposes are similar to those used for state withholding tax purposes. For income tax withholding purposes, the term employer also applies to organizations that may be exempt from income tax, such as religious, educational, charitable, and government organizations. Certain nonprofit and tax-exempt organizations, previously exempt from Social Security withholding, are now required to withhold Social Security tax from employees for wages earned in 1984 and after. Most employers must withhold and pay their share of Social Security tax. For more information, consult IRS Publication 15. Determining Amount to be Withheld Federal income tax withholding is determined by a percentage method or withholding tax tables. Social Security and Medicare Taxes Beginning in 1991, the computation of Social Security tax was separated into two parts. The old-age, survivors, and disability insurance part is referred to as Social Security. The hospital insurance part is referred to as Medicare. You must report each of these items separately on Forms 941 and W-2. The tax rate for Social Security is 6.2 percent each for employers and employees (12.4 percent total) and the wage base for 2002 is $84,900. The tax rate for Medicare is 1.45 percent each for employers and employees (2.9 percent total). All wages will be subject to the 2.9 percent total Medicare tax. 54 Oregon Business Guide

Reporting Requirements Effective January 1, 1990, agricultural employers must now withhold federal income tax on cash wages that are subject to FICA. Employers (other than agricultural and household) are required to report withholding taxes (federal income and Social Security) quarterly, using Form 941. Due dates for the form are April 30, July 31, October 31, and January 31. Payment of withheld taxes is determined by the amount of the tax liability incurred. Liability for payment (and reporting) is incurred on the date wages are paid, regardless of when they were earned. Tax liability consists of the federal income tax withholding, 12.4 percent of Social Security wages (subject to wage base limitations) and 2.9 percent of Medicare wages for the calendar year. Deposit Schedules In general, the tax liability must be deposited by mailing or delivering a check, money order, or cash to an authorized financial institution or Federal Reserve bank. Or, if preferred, the payment and coupon may be mailed to Financial Agent, Federal Tax Deposit Processing, P.O. Box 970030, St. Louis, MO 63197. Checks or money orders should be made payable to Financial Agent. Federal Tax Deposit Coupons, Form 8109, are used to make the deposits. Payment is required as follows: There are two deposit schedulesmonthly or semiweeklyfor determining when you deposit Federal employment and withholding taxes (other than FUTA taxes). The deposit schedule for a calendar year is determined from the total taxes reported on Form 941 in a four-quarter lookback period (July 1, 2000 through June 30, 2001 for the 2002 calendar year, July 1, 2001 through June 30, 2002 for the 2003 calendar year). If $50,000 or less of employment taxes has been reported for the lookback period, you are a monthly depositor; if more than $50,000 was reported, you are a semiweekly depositor. There are two exception rules, the $1,000 rule and the $100,000 one-day rule (see below). New employers during the first calendar year of business have a lookback period of zero. Therefore, new employers are monthly depositors for the first year of business (however, see the $100,000 one-day rule exception). Under the monthly rule, employment taxes withheld on payments made during the calendar month must be deposited by the 15th day of the following month. Monthly depositors should not file Form 941 on a monthly basis; it remains quarterly. Under the semiweekly rule, employment taxes withheld on payments made on Wednesday, Thursday, and/or Friday must be deposited by the following Wednesday. Amounts accumulated on payments made on Saturday, Sunday, Monday and/or Tuesday must be deposited by the following Friday. Payment Days/Deposit Period Wednesday, Thursday and/or Friday Saturday, Sunday, Monday and/or Tuesday $2,500 Rule If an employer accumulates less than a $2,500 tax liability during a quarter, no deposits are required and this liability may be paid with the tax return for the quarter. Deposit By following Wednesday following Friday
May 2003
55

$100,000 One-Day Rule If the total accumulated tax reaches $100,000 or more on any day during a deposit period, it must be deposited by the next banking day, whether an employer is a monthly or semiweekly depositor. If a monthly depositor accumulates a $100,000 employment tax liability on any day, the employer becomes a semiweekly depositor on the next day and remains so for at least the remainder of that calendar year and for the following calendar year. Agricultural Employers Agricultural employers are required to report withholding taxes (federal income, Social Security, and Medicare) annually, using Form 943. For more information on special rules for agricultural employers and deposit requirements, consult IRS Publication 51. Non-payroll Items Non-payroll items (including withholding for pension, annuities, IRAs, and gambling winnings) will be reported on Form 945, Annual Return of Withheld Federal Income Tax, beginning in 1994. Form 945 is an annual tax return and the return for 2002 will be due January 31, 2003. Electronic Deposit of Taxes If your total deposits of social security, Medicare, railroad retirement, and withheld income taxes were more than $200,000 during calendar year 2001, you must make electronic deposits for all depository tax liabilities that occur after January 1, 2003. When determining whether you exceeded the deposit threshold, combine deposits of the following tax returns you filed: Forms 941, 941-PR, 941-SS, 943, 945, and CT-1. If you were required to deposit by electronic funds transfer in prior years, but are no longer required, you may still use EFTPS if you wish to do so. The Electronic Federal Tax Payment System (EFTPS) must be used to make electronic deposits. If you are required to make deposits by electronic funds transfer and fail to do so, you may be subject to a 10% penalty. Use EFTPS to deposit taxes reported on any of the following tax forms: 720, 940 or 940-EZ, 941, 943, 945, 990-C, 990-PF, 990-T, 1041, 1042, 1120 or 1120-A, and CT-1. Employers who are not required to make electronic deposits may voluntarily participate in EFTPS. For information on EFTPS, call 1-800-945-8400 or 1-800-555-4477. These numbers are for EFTPS information only. Annual and Final Reporting File Forms W-2 and W-3, Transmittal of Income and Tax Statements, with the Social Security Administration. The IRS does not require annual reporting. An employer who is terminating business or who will have no employees in the future should check the final return box and enter the date the final pages were paid on Form 941. Penalties and Interest Interest is charged on all taxes not paid by the due dates of Form 941. The interest rate varies. Penalties are assessed for failure to report, failure to file, and failure to pay. Employers who incur a liability in excess of $2,500 per quarter are required to make federal tax deposits. For more information, consult IRS Publication 15.
56

Who Pays Federal Unemployment Tax? Generally, any employer who in the current or preceding year paid wages of $1,500 or more in any calendar quarter or at any time had one or more employees in any of 20 calendar weeks must pay federal unemployment tax. Effective for the 1985 calendar year and after, the rate is 6.2 percent of the first $7,000 of each employees wages. The employer is allowed a 5.4 percent tax credit, regardless of the applicable experience rate, for timely payment of state unemployment tax. Reporting Federal Unemployment Tax Returns are due on or before January 31, of the following year. Employers whose federal unemployment tax liability equals or exceeds $100 per quarter must make federal tax deposits. The amount to be deposited is computed by multiplying .008 by the first $7,000 of each employees wages paid during the quarter. Earned income Credit Beginning July 1, 1979, eligible employees were able to request advanced payment of the earned income credit (EIC) by submitting a Form W-5 to their employer. Beginning in 1994, certain employees who do not have a qualifying child may be able to claim the EIC on their tax return. However, these employees cannot get advance EIC payments. If an employee qualifies to receive advance EIC payments, the employer then pays the credit to the employee with each paycheck. These payments usually are from income tax withheld from wages, Social Security, and Medicare tax. Generally, to qualify for the earned income credit, for 2002, employees must have an annual family income of less than $30,201 with one qualifying child, $34,178, with two or more, and $12,060 if there is no child. A qualifying child is a son, daughter, adopted child, grandchild, stepchild, or eligible foster child. The child must also be under age 19 (under 24 if a full-time student) and reside with the employee in the United States for more than half the year. If an employee is married, she or he must expect to file a joint income tax return and together meet the income requirements listed above. How to get Forms To get forms, publications, or answers to questions, contact your local IRS office. Once an employer begins to file Form 941 and make federal tax payments, the forms will be mailed automatically. Forms can also be obtained by calling 1-800-829-3676.
May 2003
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Oregon Employer Information - Workers Compensation Insurance

17. Obtain Workers Compensation Insurance
Who Needs Coverage? All employers doing business in Oregon, with very few exceptions, are subject to the Oregon Workers Compensation Law. Employers must obtain workers compensation insurance before they employ. Failing to provide workers compensation coverage subjects employers to penalties and liability for all claims costs if an employee is injured on the job. This section will provide you with basic information on who has to have workers compensation insurance, how to obtain it, and how the workers compensation programs are financed. For general questions regarding workers compensation insurance, or if you know of a potential noncomplying employer, contact: Department of Consumer & Business Services Workers Compensation Division 350 Winter Street NE, Room 27 Salem, OR 97301-3879 503-947-7815 (voice/TTY) E-mail: wcd.employerinfo@state.or.us Internet Web Site: http://www.oregonwcd.org. Who is an Employer? If you pay someone to work for you, and you are in charge of the way the job is done, having the right to direct and control the worker, the worker is probably your employee. In 1994, the Oregon Supreme Court ruled that, for workers compensation purposes, the independent contractor checklist used by other agencies doesnt prove someone is or is not an employee. If you are trying to determine whether you need workers compensation insurance for a specific work situation, contact the Employer Compliance Unit at 503-947-7815. Exempt Employees Some workers dont have to be covered by workers compensation, even if they are employees. These workers are usually called exempt workers. Here are some of the most common exemptions: Sole proprietors. If you are a sole proprietor, you dont need coverage on yourself. Partners. In construction, exempt partners are limited to two, unless all partners are family members (related as parent, daughter, son, daughter-in-law, son-in-law, grandchild, spouse, or sibling). In other industries, most partners dont need coverage. However, the partners have to be real partners, with the right to make business decisions. Private residence workers. People working for you at your home. This includes workers doing cleaning, home health care, gardening, maintenance, and even remodeling. It does not include laborers constructing a new home. Casual labor. If your total payroll is always less than $500 within any 30-day period, your workers are casual and dont have to be covered by workers compensation. However, if your payroll ever reaches $500 within any 30-day period, workers compensation is required going back to day one of that period and must remain in effect as long as those employees work for you. Some corporate officers. Corporate officers dont have to be covered by workers compensation if they are: (1) on the board of directors, and (2) an owner of at least 10% of the stock or an amount equal to the average held by all stockholders. The ownership requirement does not apply to most family-run farms. 58 Oregon Business Guide

Exempt Employees continued In the construction or timber industries, the rules above apply only if all corporate officers are family members. Otherwise, the number of exempt officers in these two industries is limited to: (1) two corporate officers, or (2) one corporate officer for each 10 employees, whichever is more. Most limited liability company members. Most members are exempt, except in the construction trade. In construction, exemptions are only allowed if the company is registered with the Construction Contractors Board. Then all members are exempt if they are all part of the same family. Otherwise exemptions are limited to two members or one per 10 employees, and they must have substantial ownership interest in the company. Workers from out of state. Employers from other states who temporarily bring their out-of-state employees into Oregon dont usually need Oregon coverage. However, coverage is required if you hire any Oregon workers or if you come from a state that does not recognize Oregons coverage in that state.
If sole proprietors, partners, corporations, or limited liability companies are working under a contract, they must also qualify as independent contractors to be exempt. What Workers Compensation Coverage Provides Costs of injured workers claims are paid by the insurer or directly by employers who elect to self-insure. Claims costs include all medical expenses related to compensable accepted claims for injury, as well as payments to workers while temporarily or permanently disabled. It also provides payments to dependents if the worker dies as a result of occupational injury or disease. How do I get Workers Compensation Insurance Coverage? In Oregon, there are two methods to get workers compensation insurance coverage: through an insurance company or by self insurance. Insurance companies. You can get insurance from any insurer authorized to provide workers compensation in Oregon. This includes one insurer (SAIF Corporation) that is owned by the State, and more than 300 that are privately owned. Many of these insurers sell policies through agents. Often the agency that handles your other business insurance will also write your workers compensation insurance. Some insurers will deal directly with you, and a few have made special arrangements to provide workers compensation through business organizations or associations. Our department has an Ombudsman for Small Business who will be glad to discuss different options with you. Call 503-378-4209 for assistance. The Oregon Insurance Plan. The Oregon Insurance Plan is a mechanism to allow all Oregon employers the ability to obtain workers compensation insurance. The Plan is administered by the National Council on Compensation Insurance (NCCI). If you are turned down by at least one insurer, you can apply for coverage through NCCI. NCCI will make an assignment of your account to one of the Oregon insurers. It is advisable to continue to shop for better rates. You can start the application process through NCCI by calling toll free 1-800-622-4123 and ask for the Oregon desk. Self insurance. You may be able to qualify as a self-insured employer. This option is usually only available to very large employers, because the employer must have the resources to pay for major claims. You must have special bonding and be certified by the Workers Compensation Division (WCD) to be self-insured. To find out about the requirements for getting certified as a self-insured employer, contact the WCD Self-Insurance Certification Program at 503-947-7716.
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Notice of Compliance Once you purchase workers compensation insurance, is there anything else you need to do? Yes, Oregon law requires that the employer take a second step after buying the insurance. The employer must be sure the insurance company files a Guaranty Contract with the Workers Compensation Division. A Guaranty Contract is the insurers promise to cover your workers if they are injured. This contract continues in effect unless the Workers Compensation Division is notified in writing of contract termination. When the Guaranty Contract has been filed, the Workers Compensation Division mails the employer a certificate called a Notice of Compliance. The employer must post this notice where employees will see it. If an insured employer does not properly post this notice, or if a noncomplying employer does, the employer can be fined. When you receive your Notice of Compliance, you know you have valid workers compensation insurance in force. If you pay for your insurance and dont receive a Notice of Compliance within 30 days, check to be sure your insurance company has issued a Guaranty Contract. If you have questions about the Guaranty Contract or the Notice of Compliance, call 503-947-7814. Worker Leasing If you dont want to bother with obtaining workers compensation insurance yourself, there is an alternative. You can hire your employees through a worker leasing company. By contract, the leasing company will take over your payroll, workers compensation insurance, and most other paperwork. Worker leasing companies must be licensed with the Workers Compensation Division in order to do business in Oregon. Please note that worker leasing companies in the construction industry may be required to also register with the Construction Contractors Board. Penalties for Noncompliance When the Workers Compensation Division discovers you dont have required workers compensation coverage, you are subject to a fine. The penalty for a first offense is two times the amount of premium you should have paid for insurance, with a minimum of $1,000. If you continue to employ without coverage, the penalty is an additional $250 per day with no limit on the total fine. In addition, the Workers Compensation Division will request a court injunction to force you to stay in compliance; if you disobey the injunction, you are subject to additional sanctions including jail time. The expenses that result when a worker is injured can be even more costly than the penalties. By law, a noncomplying employer is financially responsible for the same benefits insured workers receive. The law requires that a certified claims agent process the claim and you pay the fee for this processing on top of the claim benefit costs. If the claim is accepted, there is an additional penalty ranging from $100 to $5,000, depending on the severity of the injury. The total bill can be hundreds of thousands of dollars and, by law, bankruptcy cant protect you from this obligation. Business owners cannot avoid personal liability by forming a corporation or limited liability company because corporate officers and directors and limited liability company members and managers are personally liable for penalties and claim expenses. In addition, lawsuit protection does not apply to a noncomplying employer; an injured worker can file suit against a noncomplying employer and collect whatever amount the court awards.
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Workers Compensation Assessments An assessment on workers compensation insurance premiums is paid by insurers and self-insured employers to the Department of Consumer & Business Services. This premium assessment pays certain costs of the departments operations. Another assessment (the Workers Benefit Fund assessment) based on the number of hours worked is used to fund the Workers Benefit Fund maintained by the department. The hourly rate is determined in the fall of each year and is preprinted on your quarterly tax combined reports (Form OQ). The total Workers Benefit Fund assessment is set for each hour or part of an hour an employee works; half is withheld from the employees wages and half is paid by the employer. This assessment is allocated to reserves that assist workers who have been injured or killed on the job and the families of those workers. Part of this money is used to increase monthly payments to workers who are permanently and totally disabled and to surviving spouses and children of workers who have died as the result of an occupational injury or illness. Part of the remainder is used to encourage the employment or reemployment of previously injured or disabled workers. The Workers Compensation Division offers two programs through its Reemployment Assistance Unit to encourage and support the reemployment and early return to work of injured workers. The Employerat-Injury and Preferred Worker programs offer work site modification, wage subsidy, premium exemption relief, and subsidy of the cost of tools, equipment, and other related items required for employment. Employers interested in hiring employees who qualify for the Preferred Worker Program (PWP) can use the PWP Job Match to post current job openings. The Job Match can be found at http://www.oregonwcd.org. You may contact these programs at 504-947-7588 or 1-800-445-3948 or 503-947-7993 (TTY). Reports Due Each Quarter All employers who are required by law or elect to carry workers compensation insurance are required to report and pay the Workers Benefit Fund assessment. You report and pay this assessment using combined reporting forms (Form OQ and Form OTC) along with other State payroll taxes administered by the Oregon Department of Revenue and Employment Department. If you must report and pay withholding, unemployment or transit taxes, see Section 14 - File Combined Employers Registration Form on page 29 for information on registering for this combined filing. If you are not subject to these other payroll taxes, but carry workers compensation insurance in Oregon, the Workers Compensation Division will register you for a State business identification number and send you forms for reporting and paying the Workers Benefit Fund assessment. Employers must file these reporting forms quarterly by the last day of the month following the end of each calendar quarter. The total amount due on the combined report must be sent to the Department of Revenue with an Oregon Tax Coupon (OTC) by the due date of the return. Employers who file reports after the due date or who fail to pay their assessments on time may be subject to penalties in addition to interest and assessment owed. For more information on quarterly reports, write or call: Department of Consumer & Business Services Business Administration Division 350 Winter Street NE Salem, OR 97301-3878 503-378-2372 Internet site: http://www.cbs.state.or.us.
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Oregon Employer Information - OR-OSHA

Small Business Ombudsman The Small Business Ombudsman for Workers Compensation serves as an independent advocate for small businesses by providing information and assistance regarding workers compensation insurance and claims processing matters. Contact the ombudsman in Salem by calling 503-378-4209 (voice) or 503-378-3200 (TTY). Internet site: http://www.cbs.state.or.us/sbo.
18. Contact OR-OSHA

General Information All Oregon businesses must comply with the states occupational safety and health standards set and enforced by OR-OSHA. Please note that all employers with eleven or more employees are required to have a safety committee. Employers with fewer than eleven employees in certain industries with hazardous working conditions or with high rates of injuries are also required to have a safety committee. Services Offered One of the many services to employers provided by OR-OSHA is a free consulting program to help employers identify and correct occupational safety and health hazards either in an existing workplace or as the business is being established. The division also operates a full safety and health resource center and lending library of publications and videos to help you make your workplace safe and healthful. OR-OSHA provides free workshops at numerous locations throughout the state, covering basic safety and health program management, safety committees, accident investigations, job safety analysis, and interactive on-line training. You will find this information and much more on the web at: http://www.orosha.org. To get information on the regulations that apply to your business and to learn more about OR-OSHA services, contact: Department of Consumer & Business Services Oregon OSHA 350 Winter Street NE, Room 430 Salem, OR 97301-3882 503-378-3272 (voice/TTY) or 1-800-922-2689 (in Oregon) Field Office Numbers Information is also available from the OR-OSHA field offices in the following locations: Office Bend Eugene Medford Pendleton Portland Salem Information 541-388-6066 541-686-7562 541-776-6030 541-276-9175 503-229-5910 503-378-3274 Consultations 541-388-6068 541-686-7913 541-776-6016 541-276-2353 503-229-6193 503-373-7819
Internet site: http://www.orosha.org.
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Oregon Employer Information - INA and BOLI

19. Obtain Immigration and Naturalization I-9 forms
General Information Employers are required to have each employee complete an employment eligibility verification form (I-9 Form) supplied by the U.S. Immigration and Naturalization Service (INS). When filling out an I-9 Form, employees must show their employer proof that they are a United States citizen or that they have permission to work in the United States. A Handbook for Employers: Instructions for Completing Form I-9 provides complete instructions for the verification process and completing the forms. You may request both the forms and the handbook explaining the rules and regulations regarding I-9 Forms by leaving a request on the forms line listed below. If you have other questions, call the general information number. US Immigration and Naturalization Service 511 NW Broadway Portland, OR 97209 1-800-375-5283 (general information) 1-800-870-3676 (to request blank forms)
20. Contact the Bureau of Labor and Industries

Services Offered The Bureau of Labor and Industries (BOLI) Technical Assistance for Employers Program provides information on wage and hour laws, employment of minors, family leave, and civil rights laws, including the state disability law. For questions in these areas or for information on the services or publications listed below, contact: Bureau of Labor and Industries Technical Assistance for Employers Program 800 NE Oregon #32 Portland, OR 97232 503-731-4200 ext. 4 BOLIs web address is http://www.boli.state.or.us. Employers can find answers to their questions and print forms and applications. The Technical Assistance section includes information about BOLI seminars, publications, laws and regulations, and answers the most often asked questions. BOLI also provides information on using or setting up apprenticeship programs for your business at: 503-731-4200 ext. 3. BOLI offers employers management training through its Technical Assistance for Employers Program. The bureau has a monthly calendar of scheduled seminars or employers can contract with the bureau for customized management training at their work sites. Topics include Effective Supervision; Wage and Hour Laws; Oregon and Federal Leave Laws; Workplace Harassment; Recordkeeping Requirements; Payroll Issues; Legal Hiring Practices; Policy Writing; and Documentation, Discipline and Discharge. There are fees for the seminars and consulting services.
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Oregon Employer Information - BOLI and Division of Child Support

Resource Materials BOLI publishes several employer handbooks that are excellent resources for a business: Wage and Hour Laws Civil Rights Laws The White Collar Exemptions Family Leave Laws in Oregon Policy Writing Guidelines Legal Hiring Practices Guide to Employee Leaves in Oregon $15 $15 $15 $15 $10 $10 $5
Handbooks will be updated in 2002. For latest version and cost call 503-731-4860. These publications can be ordered from BOLI at the address listed above but must include a $7.50 postage and handling fee for each order. BOLI provides information on the commonly required posters for Oregon employers. These requirements are also listed on page 76 of this publication. These posters are available free of charge if you contact the appropriate agencies. However, BOLI has combined the 7 commonly required postings into one 2 x 3 wall chart which can be purchased for $10 plus $7.50 postage and handling. You may also obtain information or pick up posters or publications from the BOLI area offices in the following locations: Medford Eugene 541-776-6270 541-686-7623 Portland Salem 503-731-4200, press 4 503-378-3292
21. Contact Division of Child Support

General Information As of October 1, 1998, all Oregon employers are required to report new and rehired employees to the Division of Child Support. Employer reporting is part of the new Welfare Reform Act and requires all employers to report any new hire or rehire to the Department of Justice, Division of Child Support, within twenty days of hire. This information is used to match employment for non-custodial parents, with a child support case, nation wide. It is also a tool for fraud in welfare cares, workers compensation cases and unemployment benefits. By employers reporting this information, they help children and families have better opportunities for their future. They are also saving employer tax dollars, assisting with fraud prevention on other public services and reducing paper work when a withholding order can be issued in a timely manner. Division of Child Support Contact Numbers For information on the law and the procedures for reporting, contact: Department of Justice Employer New Hire Reporting Program 1495 Edgewater Street NW Salem, OR 97304 Phone: 503-378-2868 Fax: 503-378-2863 or 877-877-7415 E-mail: employer.reports@doj.state.or.us http://www.dcs.state.or.us/employers/default.htm
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Oregon Employer Information - Business Assistance Programs

Business Assistance Programs
Introduction The business assistance programs listed in the Oregon Business Guide have been divided into three broad categories: management and technical services, financial resources, and marketing and international trade assistance. However, some of the programs provide assistance in more than one area. Please note that this is not a complete list of resources available in Oregon; this list is intended to give you some initial contacts for assistance in these areas.
Management & Technical Services

The Oregon Small Business Development Center (SBDC) Network The Oregon Small Business Development Center Network provides a variety of services to the business community. Services include business counseling, training, and referrals, and are aimed at both new and ongoing businesses. Small Business Development Centers (SBDCs) have classes that provide basic background information for individuals starting a business. SBDCs also offer publications and other resources that can be helpful. Additional assistance is available in the areas of international trade and technology transfer. For more information on the services offered, call the SBDC Network Office or the SBDC in your area. There is an SBDC at each of Oregons community colleges and at three other state educational institutions, addresses are listed on the next page. Oregon SBDC Network Office 99 W. Tenth Ave., Suite 390 Eugene, OR 97401 541- 463-5250 541-345-6006 (fax) http://www.bizcenter.org cutlers@lanecc.edu krygierc@lanecc.edu
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Oregon Employer Information - Business Assistance Programs

Albany Linn-Benton Community College 6500 SW Pacific Blvd. Albany, OR 97321 541-917-4931 albany@bizcenter.org http://www.bizcenter.org/albany Bend Central Oregon Community College 2600 NW College Way Bend, OR 97701 541-383-7290 bend@bizcenter.org http://www.bizcenter.org/bend Coos Bay/North Bend Southwestern Oregon Community College 2445 Maple Leaf Lane North Bend, OR 97459 541-756-6866 coosbay@bizcenter.org http://www.bizcenter.org/coosbay Eugene Lane Community College 1445 Willamette Street, #1 Eugene, OR 97401-4087 541-463-5255 eugene@bizcenter.org http://www.bizcenter.org/eugene Grants Pass Rogue Community College 214 SW Fourth Street Grants Pass, OR 97526 541-956-7494 grantspass@bizcenter.org http://www.bizcenter.org/grantspass Gresham Mt. Hood Community College 323 NE Roberts Street Gresham, OR 97030 503-491-7658 gresham@bizcenter.org http://www.bizcenter.org/gresham Klamath Falls Oregon Institute of Technology 3201 Campus Drive, Boivin Hall Klamath Falls, OR 97601 541-885-1760 klamathfalls@bizcenter.org http://www.bizcenter.org/klamathfalls LaGrande Eastern Oregon University One University Blvd. LaGrande, OR 97850 541-962-1532 lagrande@bizcenter.org http://www.bizcenter.org/lagrande Lincoln City Oregon Coast Community College 4157 NW Highway 101, Suite 123 Lincoln City, OR 97367 541-994-4166 lincolncity@bizcenter.org http://www.bizcenter.org/lincolncity Medford Southern Oregon University-Medford 332 West Sixth Street Medford, OR 97501 541-772-3478 medford@bizcenter.org http://www.bizcenter.org/medford Milwaukie Clackamas Community College 7736 SE Harmony Road Milwaukie, OR 97222 503-656-4447 milwaukie@bizcenter.org http://www.bizcenter.org/milwaukie Ontario Treasure Valley Community College 650 College Blvd. Ontario, OR 97914 541-881-8822 Ext. 356 ontario@bizcenter.org htttp://www.bizcenter.org/ontario Pendleton Blue Mountain Community College 37 SE Dorion Pendleton, OR 97801 541-276-6233 pendleton@bizcenter.org http://www.bizcenter.org/pendleton Portland Portland Community College 2025 Lloyd Center Portland, OR 97232 503-978-5088 portland@bizcenter.org http://www.bizcenter.org/portland Small Business International Trade Office 121 SW Salmon St., #205 Portland, OR 97204 503-274-7482 portland@bizcenter.org http://www.bizcenter.org/portland Roseburg Umpqua Community College 744 SE Rose Roseburg, OR 97470 541-672-2535 roseburg@bizcenter.org http://www.bizcenter.org/roseburg Salem Chemeketa Community College 365 Ferry Street SE Salem, OR 97301 503-399-5088 salem@bizcenter.org http://www.bizcenter.org/salem Seaside Clatsop Community College 1761 North Holladay Drive Seaside, OR 97138 503-738-3347 seaside@bizcenter.org http://www.bizcenter.org/seaside The Dalles Columbia Gorge Community College 400 E Scenic Drive, Suite 257 The Dalles, OR 97058 541-298-3118 thedalles@bizcenter.org http://www.bizcenter.org/thedalles Tillamook Tillamook Bay Community College 401 B Main Street Tillamook, OR 97141 503-842-8222 Ext. 101 tillamook@bizcenter.org http://www.bizcenter.org/tillamook
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Oregon Employer Information - Management and Technical Services

SCORE
General Information The SCORE (Service Corps of Retired Executives/Counselors to Americas Small Business) program is a volunteer organization whose professional members help small business owners, managers, and potential owners solve their operating problems through counseling and training. Counseling is also available to managers of successful firms who want to review their objectives and long-range plans for expansion and diversification. There are 6 SCORE Chapters serving Oregon. For more information contact the U.S. Small Business Administration, 1515 SW Fifth Avenue, Suite 1050, Portland, OR 97201-5494, 503-326-2682 or call SCORE at 503-326-5211. Their website is at: http://www.score.org.
Oregon Economic & Community Development Department

General Information The Oregon Economic & Community Development Department works in partnerships with Oregon communities and businesses to create better career options for Oregonians and to maintain the quality of life that makes each region in the state unique. Services include providing information on economic development services available to businesses starting up, expanding or locating in Oregon. These services reflect the global shift to an information, science and technology driven economy. New Economy businesses that rely on high-capacity telecommunications, science and research-driven manufacturing processes and knowledge transfer are critical to Oregons success in making this transition. The department offers information and a directory of primarily public sector sources to help customers with business plans and ideas about where to start looking for help. Those interested in doing business in Oregon should investigate private sources of assistance as well. Oregon Economic & Community Development Department 775 Summer Street NE Salem, OR 97301-1280 503-986-0123 (voice/TTY) 1-800-233-3306 (in Oregon) http://www.econ.state.or.us
Oregon Economic & Community Development Department Contacts for Specific Services
Business Outreach Services Business outreach services are a primary focus of the Oregon Economic & Community Development Department. This department works with private, non-profit and government sources to foster an environment that encourages growing companies from start-up to success as strong and competitive entities in our global economy. It primarily focuses on four strategic areas - networking and awareness, capital, education and public policy and taxes. For more information, call 503-986-0166, http://www.econ.state.or.us. Small Business Assistance The Oregon Economic & Community Development Department works with the Governors Council on Small Business, as well as with entrepreneurs and small businesses in Oregon to increase their potential for success. The department coordinates with venture funds, entrepreneurial organizations and service providers by helping them to access different sources of equity capital. It facilitates improved communications and linkages among various providers of services, including small business development centers, government contracts, marketing, minority business and other small business organizations. For information, call 503-986-0192, http://www.econ.state.or.us. May 2003 67

Business Retention Services The Oregon Economic & Community Development Department provides professional consulting services for companies in transition to strengthen their operations and to save jobs. The department partners with financial institutions to invest, provide advisory services for staff and to provide advice on other public and private financing alternatives, including debt and equity options. For information call 503-986-0192, http://www.econ.state.or.us. Access to Markets Linking Oregon companies with business opportunities here in Oregon, across state lines or around the world is done through a collaborative effort of economic development professionals in state and non-profit organizations. Important contacts for companies are: Exports of products and services: 503-229-5625. U.S. Government contracts: 541-344-3537. Oregon personal services contracting: 503-378-5501. Getting started in international trade: 503-274-7482. Exports of agricultural products: 503-872-6600.
Access to Capital Creative ways have been developed to enhance the potential financing from traditional financing sources. Fixed asset and working capital loans are available through regional and local economic development organizations, the Small Business Administration, the Economic & Community Development Department and other state agencies. For more information, please call: Small Business Administration loans and guarantees: 503-326-2682. Oregon business loans, guarantees, Revenue Bonds and referrals: 503-986-0172.
Regional Development Offices For help accessing resources in your community, contact Oregon Economic & Community Development Departments Regional Development Offices. Northwest Region Clatsop, Columbia, Tillamook Counties One World Trade Center 121 SW Salmon, Suite 205 Portland, OR 97204 503-229-5117 Fax: 503-222-5050 http://www.econ.state.or.us/nw.htm Clackamas, Hood River Counties 9101 SE Sunnybrook Blvd. Clackamas, OR 97045 503-353-4411 Fax: 503-353-4272 http://www.econ.stat.or.us/nw.htm Marion, Polk, Yamhill Counties c/o SEDCOR 745 Commercial St. NE Salem, OR 97301 503-588-6236 Fax: 503-588-6236 http://www.econ.state.or.us/valley.htm Lincoln, Benton, Linn, Lane Counties 1401 Willamette Street 2nd Floor Eugene, OR 97401 541-242-2380 Fax: 541-686-2325 http://www.econ.state.or.us/valley.htm
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Regional Development Offices continued Central Corridor Region Wasco, Sherman, Gilliam, Wheeler Counties Columbia Gorge Community College 400 East Scenic Drive, Ste 258 The Dalles, OR 97058 541-298-4140 Fax: 541-298-5967 http://www.econ.state.or.us/cent.htm Jefferson, Deschutes, Crook Counties 20380 Halfway Rd, Ste C Bend, OR 97701 541-388-6266 Fax: 541-389-1391 http://www.econ.state.or.us/cent.htm Eastern Oregon Region Baker, Union, Wallowa, Umatilla, Morrow Counties PO Box 1092 409 Fir Street LaGrande, OR 97850 541-963-8676 Fax: 541-962-7089 http://www.econ.state.or.us/east.htm Southwest Region Josephine, Jackson Counties 332 West Sixth Street Medford, OR 97501 541-776-6134 Fax: 541-776-6027 http://www.econ.state.or.us/sw.htm Douglas, Coos, Curry Counties Port of Coos Bay 125 Central, Ste 300/PO Box 1215 Coos Bay, OR 97420 541-267-4651 Fax: 541-269-1475 http://www.econ.state.or.us/sw.htm Other contacts: Business Finance - 503-986-0172 International Trade - 1-800-448-7512 Telecommunications - 503-986-0050 May 2003 69 Regulatory & Natural Resources Advisor 775 Summer St, NE Ste 200 Salem, OR 97301 503-986-0207 Fax: 503-515-5115 http://www.econ.state.or.us/BIreg.htm Business Development Assistance 775 Summer St, NE, Ste 200 Salem, OR 97301 503-986-0198 Fax: 503-515-5115 http://www.econ.state.or.us/BIteam.htm Grant, Harney, Malheur Counties 50 East Main Street, Suite 102 John Day, OR 97845 541-575-1050 Fax: 541-575-1054 http://www.econ.state.or.us/east.htm Lake, Klamath Counties 409 Pine St., Ste 200 Klamath Falls, OR 97601 541-882-9600 Fax: 541-882-7648 http://www.econ.state.or.us/cent.htm

Oregon Association of Minority Entrepreneurs (OAME) There are a number or organizations that offer assistance to small businesses with special emphasis on minority and women-owned businesses. They provide resources for technical assistance and promote targeted economic opportunities for these businesses around the state. The Oregon Association of Minority Entrepreneurs (OAME), is a non-profit organization that maintains a database of business opportunities which are matched with its membership. The association has several loan programs available to members. They maintain a business incubator and conference rooms for meetings or events. For more information, contact OAME, 4134 N Vancouver Avenue, Portland, OR 97217, 503-249-7744, http://www.oame.org. Governors Office: Advocate for Minority, Women & Emerging Small Business Women and Emerging Small Business is responsible for advising the Governor on activities and initiatives that promote the economic integration of minorities, women and emerging small businesses into the business sector. The Advocate works as a liaison between government agencies and certified businesses to insure inclusion of MWESB owners in Oregons economic marketplace. In addition, the Advocate works with small business owners in finding a resolution to contract issues that arise with state agencies. Through the Advocates Office, the Clearinghouse provides bid and RFP notification to state certified minority, women and emerging small businesses. In addition, the office hosts an annual conference each fall to help vendors meet state and local government buyers and small business development staff from around the state. The Advocates Office address is: 900 Court Street NE, PSB suite 126, Salem, Oregon 97301-4047. Phone 503373-1224, fax 503-378-3139, http://www.hr.das.state.or.us/minority. Opportunity Register & Clearinghouse Project Established under Oregon Revised Statute 200.035, under the direction of, and in partnership with the Governors Advocate for Minority, Women and Emerging Small Business, the Clearinghouse Project Manager assists the Advocate in developing business opportunities for MWESB owners. This position provides outreach, training, and development of programs to assist small businesses certified as Minority, Woman owned or Emerging Small Businesses. 503-373-1224 x 27, http://www.hr.das.state.or.us/minority.
Office of Minority, Women & Emerging Small Business (OMWESB) The Office of Minority, Women and Emerging Small Business (OMWESB) administers the Disadvantaged, Minority and Women and Emerging Small Business Enterprise Certification Program. As the sole certification authority in Oregon for targeted government contracts for MWESB owners, OMWESB provides one-stop certification services. OMWESB, a unit within the Department of Consumer and Business Services is located at: 350 Winter Street NE - Salem, Oregon 97301-3878, 503-947-7922, http://www.cbs.state.or.us/omwesb.
ONABEN - A Native American Business Network ONABEN is a non-profit public-benefit corporation created by Northwest Indian Tribes to increase the success of private businesses owned by Native Americans. It offers training and support focused on developing entrepreneurship in Native American communities and technical assistance in completing marketing plans. It also sponsors business services for Indian businesses and serves as a source of micro loans that can be combined with equity to acquire third-party financing. For information call 503-968-1500, http://www.onaben.org.
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Oregon Employer Information - Technical Assistance

Performance Center The Performance Center offers a link to statewide system of total quality training through Oregons university system (OUS). The Performance Center bridges the gap between theory and practice to enable Oregon businesses to acquire the tools to consistently achieve world leadership in quality, productivity, service and customer satisfaction. It provides a number of services to promote adoption of quality initiatives between Oregon companies and institutions, including public workshops and a monthly Breakfast for Excellence seminar series. For more information, contact 503-725-2800, http://www.performancecenter.org. Downtown Development The Oregon Downtown Development Association works to revitalize and maintain the heritage and economic health of Oregons downtowns and older business districts. The association promotes comprehensive downtown management through local partners, professional services and specific expertise. For more information, contact 503-587-0574, http://www.odda.org. Telecommunications Assistance The Oregon Economic & Community Development Department provides technical and training assistance, consulting, planning and financial assistance to rural and distressed communities to improve access to advanced services, route diversity and increased bandwidth. For more information, contact 503-986-0050, http://www.econ.state.or.us/telecom.
Employee Health Insurance Assistance

Through special benefits and reforms, the State of Oregon is making health insurance more available and affordable for employers, their employees, and employees dependents. Insurance Pool Governing Board (IPGB) The IPGB was created by the Legislature in 1987, and began offering certified low-cost health insurance plans to small business and self-employed in 1989. The 1999 Oregon Legislature removed the certified plan function of the IPGB, leaving the agency to concentrate its efforts in providing resources to help small business and self-employed obtain health insurance for themselves and their employees. One of these resources is the IPGB Agent Referral Program. This program links small businesses looking to purchase health insurance with agents in their own communities who can help them find affordable plans which meet their insurance needs. The agency also provides training to insurance agents and community partners on health insurance markets in Oregon and on legislative issues that affect the health insurance arena. IPGB also promotes the importance of having a health benefit plan through outreach and marketing within the community. For more information contact the Insurance Pool Governing Board, 250 Church SE #200, Salem, OR 97301-3921. Call 503-373-1692 or 1-800-542-3104, http://www.ipgb.state.or.us.
May 2003
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Oregon Employer Information - Technical Assistance

Small Employer Health Insurance (SEHI) The 1993 Legislature, as part of the Oregon Health Plan, required health insurers who serve small employers in the state to offer a basic health plan on a guaranteed issue basis to small employer groups of 2-25 employees. The 1995 Legislature expanded the availability of health insurance plans for small employers by requiring health insurers to guarantee the basic plan to small employers of 2-25 employees. The 1997 Legislature then extended the guaranteed issue of all health plans to employer groups of 2-50 employees, as required under recent federal legislation. For more information, contact the Department of Consumer & Business Services, Insurance DivisionHealth Unit, 350 Winter St. NE, Room 440-8, Salem, OR 97301, 503-947-7985 (voice/TTY), http://www.cbs.state.or.us/ins.
Child Care Technical Assistance

Child Care Resource and Referral Most communities in the state are served by local resource and referral agencies equipped to assist employers in finding cost effective solutions to the child care needs of the work force. To find out how to contact your local agency, call 1-800-342-6712. Family Health Insurance Assistance Program (FHIAP) FHIAP is a state agency offering subsidies to qualified uninsured individuals and families to help buy private insurance from an employer or in the individual market. Subsidies offset the cost of premiums to buy insurance, which typically cost $100 to $150 a month for an individual and $250 to $400 a month for a family. With a subsidy, FHIAP recipients will only have to pay 5%, 10%, or 30% of the premium cost depending on family income. Recipients are responsible for payments and deductibles associated with the plan they choose. Those applying for a subsidy must: be uninsured for at least six months, be an Oregon resident, and meet certain income criteria in order to qualify. For example, a family of four earning less than $2,500 a month could qualify for a subsidy. Oregonians interested in the program must request a place on the reservation list. When space is available in the program they will receive an application. If they qualify for a subsidy, they must then enroll in their employers health insurance plan, or if no employer coverage is available, purchase an individual insurance plan. To learn more about FHIAP or request a place on the reservation list, call 1-888-564-9669 from 9:00 a.m. to 5:00 p.m. Monday through Friday, http://www.ipgb.state.or.us/Docs/fhiaphome.htm. Employer Tax Credits and Shelters for Dependent Care Assistance Employer tax credits are available for two types of employee dependent care assistance: partial or full subsidy of employees dependent care costs; and provision of information and referral services that help employees find appropriate dependent care. In addition, a dependent care assistance program which sets aside a portion of the employees salary for reimbursement of child care expenses provides financial incentives to both the employee and the employer. For more information on employer-assisted child care, contact the Oregon Commission for Child Care, 875 Union Street NE, Salem, OR 97311, 503-947-1734. Oregon Commission for Child Care The Oregon Commission for Child Care is the states advisory body to the Governor and the Legislature on the issues and solutions around safe, quality, and affordable child care. There are 15 volunteer citizen members and 3 legislators on the commission. Three of the commissioners represent business; small, large and non-profit. The commission promotes awareness of work/life programs and their benefits to employers. The commission has helped develop an Employer Tool Kit to help employers reap the benefits of providing assistance with the child care of their employees. For more information and to obtain these resources call, 503-947-1734. 72 Oregon Business Guide
Oregon Employer Information - Financial Resources

Financial Resources
Background Federal, state, and local governments provide some financial assistance to small businesses in the form of loan programs. These loan programs generally do not provide funds for more than 30-50 percent of a business proposal and the loan applicants must demonstrate that they have sufficient capital, in addition to the loan, to fund the business. Loan applicants are also asked to demonstrate repayment ability, sufficient management expertise, and commitment to successfully operate the business. Many Oregon cities and counties have economic development programs which include financial assistance. A business should contact the city and county in which they are located, or are interested in locating, for details of their programs. The following is a list of some financial resources available to small businesses. Contact your local Small Business Development Center or local economic development agencies for additional information on financial assistance in your area. Local Revolving Loan Funds There are many revolving loan funds for small business financing administered by local governments and development groups. In most cases, funding has been provided by the Department of Housing and Urban Development through the State of Oregon or by the federal Economic Development Administration. For additional information, contact the U.S. Economic Development Administration at 503-326-3078. Some local contacts for revolving loan funds in Oregon are listed below: Portland Development Commission 1900 SW Fourth Avenue, Suite 100 Portland, OR 97201 503-823-3201 Mid-Willamette Valley Council of Governments 105 High Street SE Salem, OR 97301 503-588-6177 Mid-Columbia Economic Development District 400 E Scenic Drive, Suite 420 The Dalles, OR 97058 541-296-2266 Oregon Cascades West Council of Governments 1400 Queen Avenue SE (to visit) PO Box 686 (for mail) Albany, OR 97321 541-967-8551 CCD Business Development Corporation 744 SE Rose Street Roseburg, OR 97470 541-672-6728 Southern Oregon Regional Economic Development Inc. 332 West Sixth Street Medford, OR 97501 541-773-8946 Central Oregon Intergovernmental Council 2363 SW Glacier Place (to visit) PO Box 575 (for mail) Redmond, OR 97756 541-548-8184 NE Oregon Economic & Community Development District 105 Fir Street #321 La Grande, OR 97850 541-963-2399 or 101 NE First Street, Suite 100 Enterprise, OR 97828 541-426-3598 or 1-800-645-9454
Oregon Business Loans, Guarantees, Revenue Bonds and Referrals See Oregon Economic & Community Development Department, Access to Capital, page 68. May 2003 73
Oregon Employer Information - Financial Resources

U.S. Small Business Administration (SBA)
Loan and Loan Guarantee Programs The U.S. Small Business Administration (SBA) is a federal agency created by Congress to help small businesses. The SBA offers small firms financial assistance through guaranteed loan programs. To obtain information on the loan programs, contact the U.S. Small Business Administration, 1515 SW Fifth Avenue, Suite 1050, Portland, OR 97201-5494, 503-326-2682, http://www.sba.gov/or. The SBA also sponsors programs which provide business counseling and assistance with business development, international trade, and obtaining government contracts. In addition, the SBA furnishes assistance for women and minorities in business.
Marketing and International Trade

Small Business International Trade Office This statewide program helps small businesses become active in international trade. The program offers workshops, seminars, classes, counseling, referral and other services. As part of Oregons Small Business Development Center Network, http://www.bizcenter.org, the international trade office works closely with other centers affiliated with community colleges throughout Oregon. For more information contact the Small Business International Trade Office, One World Trade Center, 121 SW Salmon, Suite 205, Portland, OR 97204, 503-274-7482. Government Contract Assistance Program The Government Contract Assistance Program (GCAP) is a procurement technical assistance center providing counseling and bid assistance training on doing business with government agencies. GCAP provides a computer matching service that automatically matches a business with related federal, state and local bidding opportunities on a daily basis. For example, if an Oregon business manufactures a product or provides a service, the GCAP bid-matching service would let the company know every time a contract opportunity comes up from any federal agency in the country. Matches are made to international, state, and local government agencies as well. The bid match service includes federal government electronic purchasing opportunities that are not available to the public without specific electronic software, which can cost in excess of $1,000 per year. Through computer searches, GCAP can locate every buying agency nationwide that would purchase the product or service of a particular company and then automatically generate forms to place that company on the agencys solicitation mailing list. This ensures that the business receives information about the procurement opportunities for its product or service. In addition, GCAP provides technical assistance, counseling, and training on every aspect of government contracting. For more information contact GCAP, 1144 Gateway Loop, Suite 203, Springfield, OR 97477, or visit our website at http://www.gcap.org. Phone contacts: Willamette/Springfield Coos Bay Portland Central/Eastern Oregon 541-736-1088 or 1-800-497-7551 541-888-7006 or 1-800-970-4227 503-697-0614 541-548-5992
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Business Assistance Programs - Marketing and International Trade

Agricultural Products Marketing The Oregon Department of Agriculture works to promote, develop, and expand worldwide markets for Oregons agricultural products. The staff works with producers, cooperatives, and processors; organizes overseas trade missions; and hosts incoming foreign business delegates. For more information contact the Oregon Department of Agriculture, Agricultural Development and Marketing Division, 1207 NW Naito Parkway, Suite 104, Portland, OR 97209-2832, 503-872-6600, 503-872-6601 (fax), e-mail: Agmarket@oda.state.or.us.
U.S. Department of Commerce U.S. Export Assistance Center A U.S. Department of Commerce publication entitled A Basic Guide to Exporting is available from the U.S. Government Bookstore, 1305 SW First Avenue, Portland, OR 97201-5801, 503-221-6217. The U.S. Department of Commerce has many services available for exporters, including market and contact information for different countries and individual counseling to help firms meet their export marketing goals. For more information contact the U.S. Department of Commerce, International Trade Administration/U.S. & Foreign Commercial Service, One World Trade Center, 121 SW Salmon, Suite 242, Portland, OR 97204, 503-326-3001. Or visit us online at: http://www.ita.doc.gov.
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Appendix
Posters Required for Employers
Background Employers in Oregon are required to display certain informational posters for their employees. This information is adapted from a flyer prepared by the Bureau of Labor and Industries (BOLI) to help you obtain the commonly required posters. The posters are available free if you contact the appropriate agency. For your convenience, BOLI has combined the seven commonly required postings into one 2 by 3 wall chart which can be purchased for $10 plus $7.50 postage and handling. See BOLI on page 63 for more information. Please note that certain employers may have additional posting requirements. Bureau of Labor and Industries Required Posters Employers may download and print the posters from BOLIs website. The address is: http://www.boli.state.or.us/Wage/postings.html. State Minimum Wage Poster Both state and federal agencies have posters dealing with minimum wage. All employers in Oregon, with the exception of the federal government, need the state minimum wage poster. Family Leave Poster Employers with 25 or more employees in Oregon are subject to Oregons family leave law and must display the family leave poster. For information on these posters, write or call: Technical Assistance for Employers Bureau of Labor and Industries 800 NE Oregon Street #32 Portland, OR 97232 503-731-4860 http://www.boli.state.or.us Commonly Required Federal Posters
Federal Minimum Wage Polygraph Protection Act Family and Medical Leave Act Posters
Fair Labor Standards Act Employers subject to the Fair Labor Standards Act must display the federal minimum wage poster and the Polygraph Protection Act poster. For information, write or call: Wage and Hour Division U.S. Department of Labor 1515 SW Fifth Avenue, Suite 1040 Portland, OR 97201 503-326-3057
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Appendix
Additional Federal & State Required Posters
Equal Employment Opportunity Poster Employers with 15 or more employees, employment agencies, and labor organizations must display this poster which is available in English or Spanish. The notice for the new Americans with Disabilities Act (ADA) is included. For more information, write or call: Equal Employment Opportunity Commission (EEOC) Federal Office Building 909 First Avenue, Suite 400 Seattle, WA 98104-1061 1-800-669-3362 for posters or 1-800-669-4000 for questions (Spanish & English) Safety and Health Poster All employers with one or more employees must display this poster which is printed in English with Spanish on the reverse side. A poster is available for no cost. Write or call: Department of Consumer & Business Services Oregon OSHA 350 Winter Street NE, Room 430 Salem, OR 97301-3882 503-378-3272 (voice/TTY) or 1-800-922-2689 http://www.orosha.org Workers Compensation Notice of Compliance This notice is issued by the Workers Compensation Division upon receipt of a Guaranty Contract by an insurer and must be posted by every employer employing one or more subject workers. You should automatically receive this notice after purchasing workers compensation insurance. If you do not receive the notice or need a duplicate, write or call: Department of Consumer & Business Services Workers Compensation Division 350 Winter Street NE, Room 21 Salem, OR 97301-3879 503-947-7820 http://www.cbs.state.or.us/wcd Employment Insurance Notice (Form 11) Employers subject to the Employment Department must post this notice. The Employment Department will automatically send you this notice when processing your registration, but you can obtain a duplicate if you need it. Have your state business identification number ready when you call to obtain this notice. For information, write or call: Employment Department Unemployment Insurance Tax Unit 875 Union Street NE Salem, OR 97311 503-947-1488 Opt. 3 http://www.emp.state.or.us/tax May 2003 77
Appendix
Buying Wholesale for Your Business
If you attempt to make wholesale purchases for your business, you will probably be asked for your wholesale or resale license number. Oregon does not have either a wholesale or resale license. The number generally accepted for use as a wholesale or resale number in Oregon is the eight-digit business registry number that is assigned when you register an assumed business name or a business entity with the Corporation Division. See pages 10-15 of this publication for information on filing with the Corporation Division.
Sales tax
Oregon does not have a state sales tax.
Oregons Minimum Wage

The 2003 minimum wage for Oregon is $6.90 per hour. Oregons minimum wage is adjusted annually for inflation by the Bureau of Labor and Industries. For more information, contact the Bureau of Labor and Industries (BOLI). See page 63 for an address and phone numbers.
If You Use Music in Your Business.

U.S. Copyright Law gives copyright owners the exclusive right to publicly perform or authorize performance of their works. Most music is protected by a copyright. The proprietor of a business in which copyrighted music is performed is liable for infringement of copyrighted music in his or her place of business. If you use music in your business in any way, including as background music or on your phone system, you should be aware of your liability for using the music. Three organizations license performance rights for most of the music copyright holders in the United States. You can obtain more specific information on how to comply with the Copyright Law regarding music use by contacting an attorney or these organizations. Broadcast Music, Inc. (BMI) 10 Music Square East Nashville, TN 37203 615-401-2000 or 1-800-925-8451 http://www.bmi.com American Society of Composers, Authors and Publishers (ASCAP) One Lincoln Plaza New York, NY 10023 212-621-6000 http://www.ascap.com SESAC, Inc. 55 Music Square East Nashville, TN 37203 615-320-0055 or 1-800-826-9996 http://www.sesac.com
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May 2003
Coos Curry
Oregon Counties
Clatsop Columbia
Hood Washington Multnomah Tillamook Yamhill Polk Marion Clackamas Wasco
Umatilla Sherman Gilliam Morrow Union
Wallowa
Wheeler Jefferson Lincoln Benton Crook Lane Deschutes Linn Grant
Baker
Douglas Harney Malheur
Lake
Josephine
Jackson
Klamath
Appendix
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Corporation Division Office of the Secretary of State
Business Referral Center Public Service Building, Suite 151 255 Capitol Street NE Salem, OR 97310-1327 (503) 986-2220 Oregon Business Guide Publication No. BRCGUI1100 May2003

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Oregon Employer Information - Oregon Withholding Tax

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If your total federal tax liability is:

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