Oregon Unemployment Tax Letters

Some of our clients recently received a letter from the Oregon Employment Department notifying them that they are eligible for forgiveness of unemployment taxes. The subject heading looks like this: 

Although the letter states that the department will issue refunds automatically and that no action is required, the letters are causing confusion for some clients. 

Why did they send this letter? 

House Bill 3389 which provided tax deferrals and forgiveness for employers that had a tax rate increase from 2020 to 2021.  For businesses that qualify, the department will be issuing refunds for the increase in the tax. They sent the letter to ensure that the correct address is on file, since they will be mailing paper checks for the refunds.

In addition, some businesses may have deferred tax on their 2021 tax form OR-OQ, and if that is the case, the deferral still needs to be repaid, so the letter also serves as a reminder to do that. If you deferred your taxes in 2021 you will receive separate statements showing the amount due for that deferral.

If you would like more information about this legislation or the effect on your business you can visit the Oregon Employment Department website

Do I or Sherwood Tax need to respond to the notice?

No, there is no action that needs to be taken.