Articles in this section

Exemptions

Avatar
Payroll Admin
Updated
Follow
  • Federal:
    • 501(c)(3) non profit organizations
      • Do not pay Federal Unemployment Tax Act (FUTA) taxes
  •  General
      • Workers Compensation Coverage: Businesses typically do not need to carry workers' compensation coverage for any employees who are shareholders. Owners of an S corporation who do not work in the business do not qualify as employees and would not be eligible for coverage.
      • 501(c)(3) non profit organizations
        • While SUTA tax rules vary, nonprofits can elect to forgo quarterly SUTA tax payments in favor of paying the state directly for unemployment benefits paid to their former employees.
  • Oklahoma: 
      • Unemployment Insurance
        • Non-profits: if they employ three or fewer employees for some portion of a week during any 20 weeks in a calendar year they are not subject to SUTA. 
        • LLCs taxed as S-Corporations are not exempt.
  •  Oregon:
    • TriMet
      • Insurance agents are not subject to TriMet
      • Ministers or members of religious orders are not subject to TriMet when performing religious services.  
    • Workers Benefit Fund
      • Generally, an employer must report and pay the WBF assessment for all people on its payroll who are or legally should be covered by workers' compensation insurance in Oregon
      • Partners who are business' only workers, certain corporate officers, workers exempt under ORS 656.027) are not subject
        • ORS 656.027 exempts LLC members; Corporate officers
      • If employer provides Workers Compensation coverage to an exempt employee, the employee is not exempt.
    • Unemployment Insurance
      • Corporations MUST report and pay (excluding closely held family corporations)
      • LLC are not liable for unemployment insurance tax on compensation to members.
      • 501(c)(3) non profit organizations
        • must register and file quarterly tax reports like other employers
        • *option* on financing unemployment insurance costs
          • Pay UI tax
            • Default employer registration is "Pay UI tax," if "Reimburse..." option (explained below) desired, an employer must request reimbursing option
              • Requires submission of Form 601, Form 483 and statement from IRS showing organization is exempt.
          • Reimburse UI Trust Fund on a pro-rated for benefits paid (100% of regular benefits and all additional benefits; and one-half of extended unemployment insurance benefits paid to former employees).
            • No provision to grant relief of charges for benefits attributable to reimbursing employers.
    • Paid Leave
      • Owner/employees ARE subject.

Comments

0 comments

Article is closed for comments.

Related articles