Oregon Administrative Rules › Chapter 471 - EMPLOYMENT DEPARTMENT › Division 70 - Paid Family Medical Leave Insurance › Section 471-070-2030 - Self-employed: Income, Contribution Payments, and Reporting Requirements

Current through Register Vol. 63, No. 7, July 1, 2024
(1) A self-employed
			 individual who elects coverage under ORS
			 657B.130 must contribute to the
			 Paid Family Medical Leave Insurance (PFMLI) Trust Fund in an amount that is
			 equal to 60 percent of the total contribution rate described in OAR
			 471-070-3010  up to an annual taxable income from self-employment that is equal
			 to the calendar year maximum wage amount described in OAR
			 471-070-3010.
(2) Total
			 contribution payments will be based on the individual's total taxable income
			 from self-employment from the tax return required to be filed for a prior tax
			 year, per OAR 471-070-2010  and generally shall be divided into four quarterly
			 contribution payments. If a contribution is due for only part of a quarter, the
			 contribution amount and the taxable income from self-employment used to
			 calculate the weekly benefit amount, shall be prorated based on the number of
			 calendar days that the elective coverage is in effect.
Example: Sally, a self-employed individual, elects PFMLI
				coverage on May 1, 2024. Sally earned $80,000 in taxable income from
				self-employment in 2023. Assuming a total contribution rate of one percent,
				Sally's four quarterly contribution amounts due, and taxable income from
				self-employment, are calculated as follows:
First quarterly payment, period of May 1 through June 30
				(second quarter calendar year 2024), will be $80.44 [($80,000 taxable income
				from self-employment x 0.01 total contribution rate x 0.6 self-employed
				contribution percentage / four quarters) x 61/91 calendar days in the quarter].
				Her taxable income from self-employment for this quarter will be $13,406.59
				[($80,000 taxable income from self-employment/four quarters) x 61/91 calendar
				days in the quarter].
Second quarterly payment, period of July 1 through September 30
				(third quarter calendar year 2024), will be $120 ($80,000 taxable income from
				self-employment x 0.01 total contribution rate x 0.6 self-employed contribution
				percentage / four quarters). Her taxable income from self-employment for this
				quarter will be $20,000 ($80,000 taxable income from self-employment / four
				quarters).
Third quarterly payment, period of October 1 through December
				31 (fourth quarter calendar year 2024), will be $120 ($80,000 taxable income
				from self-employment x 0.01 total contribution rate x 0.6 self-employed
				contribution percentage / four quarters). Her taxable income from
				self-employment for this quarter will be $20,000 ($80,000 taxable income from
				self-employment / four quarters).
Fourth quarterly payment, period of January 1 through March 31
				(first quarter calendar year 2025), will be $120 ($80,000 taxable income from
				self-employment x 0.01 total contribution rate x 0.6 self-employed contribution
				percentage / four quarters). Her taxable income from self-employment for this
				quarter will be $20,000 ($80,000 taxable income from self-employment / four
				quarters).
(3) Quarterly
			 contributions shall be due and payable in accordance with OAR
			 471-070-3030.
(4) A self-employed
			 individual who fails to timely pay contributions as required by sections (1)
			 through (3) of this rule is delinquent. Any individual found to be delinquent
			 in the payment of contributions is subject to the penalties as specified in ORS
			 657B.320 and also may be
			 assessed an additional penalty as provided in ORS
			 657B.910.
(5) The date of receipt of contributions
			 transmitted through the mail or private express carrier shall be determined as
			 provided in ORS 293.660. The date of receipt
			 shall be used in the calculation of interest charges, delinquencies, penalties,
			 or other sanctions provided by law.
(6) The self-employed individual must
			 annually report information and submit documentation as provided in subsections
			 (a) and (b) of this section that the department deems necessary for the
			 administration of elective coverage.
(a)
			 Except as specified in subsection (b) of this section, a self-employed
			 individual must annually report to the department the prior year's taxable
			 income from self-employment required to be filed and must provide their Oregon
			 personal income tax return to the department on or before April 30 of each
			 year.
(b) If a self-employed
			 individual files their Oregon personal income tax return on extension, the
			 department will use the information on the individual's last tax return filed
			 and provided to calculate quarterly contribution payments. The department will
			 adjust the quarterly contribution payments due when the prior year's tax return
			 on extension is filed and provided to the department. The self-employed
			 individual must report to the department the prior year's taxable income from
			 self-employed filed on extension and provide their Oregon personal income tax
			 return on or before October 31 of each year.