OAR 471-031-0076
Common Paymaster


As provided in ORS 657.477 (Related corporations as common paymaster), a common paymaster established for a group of related corporations is any member thereof that disburses remuneration to employees of two or more of those corporations on their behalf. However, the common paymaster is not required to disburse remuneration to all employees of the two or more related corporations:


A common paymaster making disbursements on behalf of related corporations to employed individuals shall be responsible for taxes, interest and penalties imposed by ORS Chapter 657 (Unemployment Insurance) on all wages disbursed by it;


For purposes of charging benefits paid and mailing notices to base year employers, the common paymaster shall be considered the employer for all wages disbursed to individuals by the common paymaster whether payment was for services performed for the common paymaster or for a related corporation.


If the common paymaster fails to remit taxes, interest and penalties on all wages disbursed by it as required by ORS Chapter 657 (Unemployment Insurance), the Director may hold each of the related corporations liable for a proportionate share of the obligation. Such proportionate share may be based on sales, property, corporate payroll or any other reasonable basis that reflects the distribution of services of the pertinent employees between the related corporations. When there is no reasonable basis for allocating the amount owed, it shall be divided equally among the related corporations. If a related corporation fails to pay any amount allocated to it pursuant to this section, the Director may hold any or all of the other related corporations liable for the full amount of the unpaid taxes, interest and penalties.


Two or more corporations shall be considered related corporations for an entire calendar quarter if they satisfy any of the following tests at any time during that calendar quarter:


More than 50 percent of the total combined voting power of all classes of stock entitled to vote or more than 50 percent of the value of shares of all classes of stock of each corporation is owned by one or more of the other corporations, and the common parent corporation owns stock possessing more than 50 percent of the total combined voting power or more than 50 percent of the total value of shares of all classes of stock of at least one of the other corporations;


Five or fewer persons who are individuals, estates or trusts own more than 50 percent of the total combined voting power of all classes of stock entitled to vote or more than 50 percent of the total value of all classes of stock of each corporation, taking into account the stock ownership of each person only to the extent such stock ownership is identical with respect to each such corporation;


A group of two or more corporations is combined with a common parent corporation as described in subsection (a) of this section and also such parent corporation is a member of a group of corporations as described in subsection (b) of this section;


Fifty percent or more of one corporation’s officers are concurrently officers of the other corporation;


Thirty percent or more of one corporation’s employees are concurrently employees of the other corporation;


When a corporation that does not issue stock is involved, either:


Fifty percent or more of the members of one corporation’s board of directors (or other governing body) are members of the other corporation’s board of directors (or other governing body); or


The Holders of fifty percent or more of the voting power to select members of one corporation’s board of directors (or other governing body) are concurrently the holders of more than fifty percent of that power with respect to the other corporation.


For purposes of section (3) of this rule, concurrent employment means the simultaneous existence of an employment relationship (within the meaning of ORS Chapter 657 (Unemployment Insurance)) between an individual and two or more corporations. Such a relationship contemplates the performance of services by the individual for the benefit of the employing corporation, not merely for the benefit of the group of corporations:


The simultaneous existence of an employment relationship with each corporation is a decisive factor. If it exists, the fact that a particular employee is on leave or otherwise temporarily inactive is immaterial;


Employment is not concurrent with respect to one of the related corporations if the employee’s employment relationship with that corporation is completely nonexistent during the periods when the employee is not performing services for that corporation;


An individual who does not perform substantial services for a corporation is presumed not employed by that corporation;


A corporation which has no employees performing services for it in Oregon cannot be the common paymaster for Oregon employees of its related corporations.


Related corporations which compensate their employees through a common paymaster shall file with the Director the details of their plan. The detail shall include the names of the related corporations, the name of the common paymaster corporation and the class or classes of workers involved. The filing shall include documentation to substantiate the corporations are related as defined in section (3) of this rule and that employees are concurrently employed. An amendment to the plan shall be filed whenever there is a change in the related corporations participating in the plan, a change in the common paymaster or a change in the class or classes of workers involved.


Plans submitted pursuant to section (5) of this rule shall be filed within the 30 day period following the end of the calendar quarter in which the plan is in effect. Eligibility of an employee to be compensated through a common paymaster shall be determined on a quarterly basis.


A common paymaster is not a successor corporation pursuant to ORS 657.480 (Effect of transfer of trade or business) for concurrent employees unless the related corporation ceases operations and is acquired in its entirety by the paymaster corporation.


An employing unit may not report the payroll of any other employing unit, except as provided in this rule. For the purposes of ORS 657.095 (Payroll), wages paid by separate employing units may not be aggregated or combined for purposes of reporting payroll unless there is an actual transfer of entity and experience rating as provided by ORS 657.480 (Effect of transfer of trade or business).


The term “common agent” as defined by federal law, is not recognized for the purposes of ORS 657.
Payroll Records
Posting of Notices By Employers
Corporate Officer and Shareholder Dividends as Wages
Corporate Officer/Director Election
Incidental Expense of Employees
Jury Pay
Bonuses, Fees, and Prizes
Accident Compensation
Dismissal and Separation Allowances, Vacation Pay, Holiday Pay, and Guaranteed Wage Payments
Remuneration Other than Cash
Payments by an Employer to Persons in the Military Service
Employer Elections to Cover Multi-State Workers
One Percent Penalty
Application of Payments
Appointment of an Agent to Act on Behalf of a Group of Employers
Common Paymaster
Tax Compromise Policy
Employer Wages and Hours of Work Report
Approval of Work Experience Programs
Student Employment
Action at Law, Verification, Liens, Distraint Warrants
Christmas Tree Farms
In-Home Sales
Domestic Service
Participants of Federal Training Programs
Employing Enterprise and Prohibited Activities
Transfer of Experience Determination, Tax Rate, Consolidation
Partial Transfer of Experience
Acquiring an Employing Entity: Active or Inactive
Continuous Jurisdiction
Failure to File Reports or Pay Tax — Good Cause
Investigatory Subpoenas
Computation of Excess Wages
Agricultural Employment
Independent Contractor
Indian Tribes
Shopping News
Horticultural Commodity
Cafeteria Plans
Bond or Deposit
Registered Domestic Partnerships
Volunteer Consideration
Election of coverage for services normally excluded from unemployment insurance
Last Updated

Jun. 8, 2021

Rule 471-031-0076’s source at or​.us