Chapter 283 Oregon Laws 2005

AN ACT

HB 2950

Relating to dependent care assistance; creating new provisions; and amending ORS 657.115.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 657.115 is amended to read:

657.115. (1) “Wages” does not include the amount of any payment made to, or on behalf of, an individual or any of the individual’s dependents on account of:

(a) Retirement.

(b) Sickness or accident disability under a workers’ compensation law.

(c) Medical or hospitalization expenses in connection with sickness or accident disability.

(d) Death.

(e) Dependent care assistance furnished pursuant to a program that meets the requirements of section 129(d) of the Internal Revenue Code, to the extent the assistance does not exceed the earned income limitation in section 129(b) of the Internal Revenue Code.

(2) For purposes of this section, “payment made” includes amounts paid by an employing unit for insurance or annuities or into a fund.

(3) This section does not apply unless the payment is made under a plan or system established by an employing unit which makes provision generally:

(a) For individuals performing service for it or for such individuals generally and their dependents; or

(b) For a class or classes of such individuals or for a class or classes of such individuals and their dependents.

(4) As used in this section, “Internal Revenue Code” means the federal Internal Revenue Code as amended and in effect on December 31, 2004.

SECTION 2. The amendments to ORS 657.115 by section 1 of this 2005 Act apply to unemployment insurance tax reporting periods beginning on or after January 1, 2006.

Approved by the Governor June 20, 2005

Filed in the office of Secretary of State June 21, 2005

Effective date January 1, 2006

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