For purposes of this rule:
(a) "Business entity" includes a sole
proprietorship, a partnership, and an unincorporated limited liability
(b) "Principal" means an
individual with significant authority in a "business entity" (see subsection
(a) of this section), including a sole proprietor, a general partner in a
partnership, or a member or manager of an unincorporated limited liability
Notwithstanding any other sections of this rule:
Homecare workers (see OAR 411-031-0020
paid by the Department are not self-employed.
Providers considered an employee of an
Aging and People with Disabilities, Office of Developmental Disabilities
Services, or Oregon Health Authority benefit recipient, such as Independent
Choices Program (see OAR 411-030-0100
) providers, Personal Support Workers (see
), and Personal Care Attendants (see OAR 410-172-0810
) are not
providers (see OAR 461-165-0180
) paid by the Department, adult foster home
providers (see OAR 411-050-0602
) paid by the Department, realty agents, and
individuals who sell plasma, redeem beverage containers, pick mushrooms for
sale, or engage in similar enterprises are considered self-employed.
Self-employment does not include
non-business activities such as property rentals (see OAR 461-145-0252
renting a room out of the financial group's primary residence (see OAR
Self-employment means active engagement in one's own business, trade, or
profession, rather than earning a salary or wage paid by an employer or
maintaining a passive ownership interest in a business entity. An individual is
considered self-employed if the individual meets the criteria in subsection
(2)(b) or section (5) of this rule.
subsection (1)(b) of this rule) of a corporation or incorporated limited
liability company cannot be considered self-employed unless the criteria in
either subsection (a) or (b) are met. All other payments for working or
performing services for the corporation or holding corporate office are treated
in accordance with OAR 461-145-0089
(a) The individual files taxes for the
incorporated business entity as self-employed on their personal taxes, rather
than as a corporation.
individual does not file taxes and meets the criteria in section (5)(c) of this
provided in OAR 461-145-0089
(3), an individual is self-employed for the
purposes of this division of rules if the individual meets the requirements of
one or more of (a), (b), or (c):
taxes as self-employed for their business on their personal taxes.
(b) Is considered an independent contractor
by the business.
Meets all the
(A) Is not required by the
business to complete an IRS W-4 form;
(B) Is not required to pay federal income tax
or FICA payments from their paycheck(s);
(C) Liability or workers' compensation
insurance for the individual is not paid by the business;
Meets at least one of the following:
(i) Creates or provides the products or
services they sell, or
the price for the products or services they sell;
(E) Is responsible for the business expenses
and losses; and
profits from the business.
For a principal or any individual with an
ownership interest in a business entity who cannot be considered self-employed
using the criteria in this rule:
for individuals who are not actively working in the business
entity to determine how to treat income and resources.
For individuals who are actively working
for the business entity
but do not have significant authority
or responsibility for its success or failure:
to determine how to treat resources.
For an individual who is
to determine how to treat resources used in
Or. Admin. R.
25-2015, f. 9-29-15, cert. ef.
21-2020, amend filed 07/08/2020, effective
47-2021, amend filed 09/23/2021, effective
Statutory/Other Authority: ORS
Statutes/Other Implemented: ORS