(1) An employer may not deduct from the
employee's subject wages more than the maximum allowable amount of 60 percent
of the total contribution rate described in OAR
471-070-3010 for a pay period
rounded to the nearest cent. When rounding, any number with the last figure
five or greater is rounded up, while numbers less than five are rounded
down.
(2) When performing the
calculation described in section (1) of this rule, the intermediate steps shall
not be rounded, only the final step shall be rounded to the nearest cent.
Example: On February 2, 2023 Jennifer earned $1,769.89 in
subject wages for the pay period. The employer calculates Jennifer's
contributions by multiplying the subject wages by the total contribution rate
of 1% (not rounded) by the employee contribution rate of 60% (rounded to the
nearest cent). The total potential contribution is $17.6989 ($1,769.89 x 0.01 =
$17.6989, not rounded). Jennifer's employee portion of the potential
contribution is $10.62 ($17.6989 x 0.60 = $10.61934, rounded to the nearest
cent is $10.62). The employer's contribution (if a large employer) is $7.08
($17.6989 x 0.40 = $7.07956, rounded to the nearest cent is $7.08).
(3) If an employer fails to deduct
the maximum allowable employee share of the contribution rate for a pay period,
the employer is considered to have elected to pay that portion of the
employee's contribution that the employer failed to deduct. The employer is
liable to pay that portion of the employee share under ORS
657B.150(5) or
ORS 657B.210(5) for
that pay period, if the failure to deduct the contribution is not corrected
within the quarter. The employer may deduct from the employee's subject wages
the amount they failed to deduct within the quarter.
(4) Notwithstanding section (3) of this rule,
when there are insufficient employee wages to collect the employee's share of
the contribution for a pay period, the employer may deduct the employee's share
of the uncollected contribution from future wages or have the employee pay the
contribution amount due to the employer before the end of the next quarter. The
employer may collect the employee's share of uncollected contributions until
the end of the next quarter following the quarter in which the employee had
insufficient wages for the contribution. The total amount deducted from any
paycheck may not exceed 10 percent of the employee's gross wages earned in the
pay period covered by the paycheck.
(5) An employer may elect to pay the
employee's contribution, in whole or in part, and must provide a written
notice, policy, or procedure to the employee or enter into a collective
bargaining agreement with the employee specifying that the employer is electing
to pay the employee contribution, making the employer liable for that portion
of the employee contribution. The employer must give written notice of an
update to its notice, policy, or procedure or amendment to its collective
bargaining agreement to the employee at least one pay period prior to any
reduction by the employer of the employee contribution amount that the employer
previously elected to pay.
(6) If
an employer has elected to pay, in whole or in part, the employee portion of
contributions as stated in section (5) of this rule, the employer may not
deduct the amount the employer elected to pay from a future paycheck of the
employee.
