The state of Oregon has enacted legislation (Senate Bill 184) that extends new hire reporting requirements to independent contractors. Senate Bill 184 takes effect on Jan. 1, 2024, and is not retroactive.
The details
Senate Bill 184 clarifies the following definitions for new hire reporting requirements:
- Employee: An individual that is required to file a federal withholding form W-4 under the Internal Revenue Code.
- Independent contractor: An individual that is required to file a federal Form W-9 under the Internal Revenue Code and is anticipated to perform services for more than 20 days.
- Re-engage: To engage an independent contractor who previously performed services as an independent contractor for the same employer, but not within the previous 60 days.
- Rehire: To re-employ an individual who was laid off, separated, furloughed, granted a leave without pay, or terminated from employment for more than 60 days.
Senate Bill 184 extends the following New Hire Reporting Requirements:
Existing law
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Jan. 1, 2024, additions
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Employer Reporting Eligibility
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Employers in Oregon must report to the Division of Child Support of the Department of Justice (the Division) the hiring or rehiring of an employee that:
- Resides or works in Oregon; and
- The employer anticipates paying earnings, provided the employer:
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Senate Bill 184 requires employers in Oregon to also report to the Division of Child Support of the Department of Justice when an independent contractor is engaged or re-engaged.
Bullet “A” is amended to: “Has employees or independent contractors that only work in Oregon.”
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Form Submission
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The required report may be submitted on:
- A Federal Form W-4; or
- An equivalent form that is approved by the Division.
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Employers with independent contractors may use Form W-9 as a reporting option.
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Required Worker Information
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The required report must contain the employer’s name, address and federal tax identification number and the employee’s name, address and Social Security number.
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The required report must contain the employer’s name, address and federal tax identification number and the employee or independent contractor’s name, address and Social Security number.
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Submission Requirements
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An employer must submit the report by mail or other means in accordance with rules adopted by the Department of Justice.
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No change.
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An employer may submit a cumulative report for all individuals hired or rehired during the previous reporting period.
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The law adds those that are engaged or re-engaged in the cumulative report requirement.
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Timing Requirements
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The report must be made:
- No later than 20 days after the date the employer hires or rehires the employee; or
- Monthly, at least 12 days apart, and no more than 16 days apart, if electronically submitted.
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The timing also applies to the engagement or re-engagement of an independent contractor.
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Next steps
Oregon employers should review their hiring policies and procedures and train HR personnel to ensure compliance with Senate Bill 184 by Jan. 1, 2024.
Please contact your HR Business Partner with any questions.
Thank you,
ADP