Keeps costs down for employers
A Republican-sponsored bill that was approved by the House with unanimous support seeks to introduce a number of fixes to Oregon’s unemployment benefits system.
Chief among them is allowing businesses to reset their unemployment insurance taxes owed to pre-pandemic rates.
Throughout the past year, government-mandated closures forced businesses with significantly less revenue to lay off staff in unprecedented numbers. This had unforeseen ramifications for the assessment of unemployment insurance taxes owed, leading to a dramatic rise in tax obligations at a time when business revenue was lowest.
HB 3389, backed by Republican sponsors, would allow businesses that saw this tax increase to defer some payments and even forgive a percentage of the deferred taxes. This bill also ensures that tax rates don’t rise further because of impacts from the pandemic.
Representative Daniel Bonham (R-The Dalles) is a chief sponsor on the bill and was responsible for negotiating the measures outlined by the proposal.
“This pandemic-related relief is exactly why we’re here right now,†added Rep. Bonham. “85 percent of all Oregon businesses saw their unemployment tax rates increase in 2021. That could have a significant impact on the recovery of jobs in Oregon, and is why we needed this fix.â€
“Oregon’s unemployment benefits system was put through tremendous strain during this past year, and that exposed serious flaws that needed to be addressed,†said House Republican Leader Christine Drazan (R-Canby,) one of the bill’s sponsors. “At the start of this session, we said that business relief would be a top priority so that we can recover lost jobs. Fixing the errors in our state’s unemployment benefits system is one way that we can provide relief to Oregonians.â€
HB 3389 was passed with unanimous support on the House floor.
--Staff ReportsPost Date: 2021-04-16 11:48:25 | Last Update: 2021-04-15 20:30:58 |