Three eBook Titles!

From this Saturday through Sunday, I will be making my three self-published titles free to acquire — with a small caveat.  Unlike my titles published through either traditional or hybrid methods, the self-published final product has not been quite as polished.  I think I have a better idea of the correct formatting for these things now, and I also have some new editorial techniques and tools to catch issues overlooked in the past.  I is a writer, after all.  :)  I should also add that, for my Oregon, My Oregon series, the original idea was to combine two of the pursuits I enjoy most: writing and photography.  Unfortunately, Kindle is not providing the correct format for this.  The photo resolution and size is just unsatisfactory.  

Still, there may be helpful information in these little eBooks, and the photos hint at what awaits the visitor.  So, I am including them along with my short story collection (which I am happier with than the other two titles, as you can likely tell).

So, grab all three, but don't expect too much from the photography books.  I do like some of the extra content included in the Mt Jefferson collection, as it details an emergency we encountered in the backwoods.

Regarding the short story collection, I would particularly appreciate reviews if you enjoy the eclectic collection.  If you double-click the first image, you will be taken to the Amazon page for the Wallowa title.  Doing the same below takes you to that title's page.  Click HERE for the Mt Jefferson title.

DEI in the Context of Oregon State Priorities (A Guest Blogger)

 

As a way of introduction, what follows is a guest blog.  Before starting, though, I did a public records request of the state about a year ago concerning how many employees were working in a DEI capacity and associated payroll.  I was politely told to pound sand.  Today's blogger combed the internet to create an engaging visual and an accompanying short post on the topic.  First, however, an illustration that shows one of my concerns with DEI.  During the Great Potato Famine in Ireland, there were about a million souls lost in the home country and another million fleeing abroad to Britain, Canada, and the USA.  They would often arrive on our North American shores sick as dogs and without a penny to their names.  They began accepting the absolute worst jobs the nation had to offer from digging canals (Erie Canal, for instance) to constructing railroads.  Mass graves of Irish laborers are often found in the areas of these construction projects.  The startling truth is that even slaves held a monetary value to their "owners," but the Irish...they just kept coming.  They became seen as disposable people.  A somewhat similar history befell the immigrating Chinese.  If you have read my novel The Blood Cries Out, you learned about the ambush of a large number of Chinese miners along the Snake River in May 1887 (not too far from today's Imnaha, Oregon).  The point is that there were many different immigrant groups treated deplorably, yet DEI completely ignores the ones that don't conveniently fit its narrative.

Oregon’s DEI Staffing: A Costly Distraction from Core Services

In Oregon, the state’s commitment to Diversity, Equity, and Inclusion (DEI) has led to the establishment of specialized positions within government agencies. While these roles are often portrayed as essential for fostering an inclusive environment and carrying out the respective mission of each agency, the reality raises significant concerns about their necessity and impact.

The primary question is: Are these DEI positions effectively serving the public, or are they diverting resources from essential services? With state budgets under constant scrutiny, allocating funds to roles that may not directly contribute to public welfare is a contentious issue. The effectiveness of DEI initiatives in achieving tangible outcomes remains debatable, and without clear metrics, it’s challenging to assess their value.

Moreover, the creation of DEI roles can inadvertently lead to a culture of compliance rather than genuine cultural change. Agencies may focus more on fulfilling DEI quotas and meeting regulatory expectations than on addressing the supposed underlying issues of inequality and exclusion. This approach risks reducing complex social challenges to checkboxes on a form, rather than fostering meaningful dialogue and systemic reform.

In conclusion, while the intention behind DEI staffing is to promote fairness and representation, the actual impact on Oregon’s governance and public services warrants closer examination. It’s crucial to ensure that efforts to enhance inclusivity do not come at the expense of the state’s primary responsibility: delivering effective and efficient services to all its citizens.

Marijuana and its Unintended Consequences

Not so long ago, the issue of legalized marijuana used to be the stuff of somewhat esoteric political debates between Republicans and Libertarians—maybe the occasional anarchist thrown in for good measure.  Even stalwart Republicans of the 1970 era like William F. Buckley, Jr, founder of the National Review, was a vocal supporter of its decriminalization.  It’s no surprise that everyone from Rick Steves to Brad Pitt and Miley Cyrus are extolling the virtues of pot at nearly every opportunity—some more careful than others, of course, about potentially alienating wide swaths of fan their fan base.

 

I was never taken in by siren call of marijuana; I knew of too many people who used it.  I noticed how they lost their spark, their vitality, and even ambition or a desire to make something better of themselves.  They disappeared into a murky mediocrity, surviving rather than thriving.  In many ways, it reminds me of Huxley's soma.  When I had the opportunity to work for a time in the Tobacco Tax Compliance field for state government, my eyes were further opened to the interconnected nature of the black-market in selling to a surprising number of establishments, and, then, in turn, often using the proceeds to support some very dangerous causes.  Despite Rick Steves’ glowing assertions otherwise, I was always confident that it was only a matter of time until organized crime stepped in to take a piece of the action.  After all, not all growers and producers are going to be satisfied with the built-in containment measures of the current system; they want to expand and grow.  That expansion has to go somewhere, and that means the illegal market.  Imagine someone blowing up a balloon; it’s eventually going to pop.  If you see state laws and regulations as the thin veneer of containment, 

 

I know of so-called conservatives who even market marijuana or its derivatives.  They apparently make a good enough living at it that those nagging concerns in the back of their minds have grown much quieter now over time.  What are some of these associated costs, though?  You might be surprised to learn of profoundly negative environmental, social and economic, health, psychological, and even livability issues associated with its grow and production.  I decided to gather some items here and share a related thought or two as it relates.  These will mostly be short paragraphs followed by related links.  I’m keeping the links in the visible form in order that you can see the sites before accessing them; they’re not all Fox News, for example.

 

Leading with one’s weakest point is not usually a good debate strategy, but in this case I’ll note that the quality of life argument seems the hardest to quantify objectively.  Other than a few articles like this one, there aren’t many examples of newspaper stories and the like talking about how the nature or feel of loved towns has been lost forever due to this drug.  While I had one particular story recounted to me from a resident in Eastern Oregon about how awful things had become in her neighborhood, too little information remains from the contact to use it in any kind of a meaningful way here.  While many of us may feel that the presence of these establishments somehow negatively impacts our daily life, there’s no way to quantify this.  Further, in states such as Colorado, reports actually suggest that the added tax revenue may be increasing the value of existing neighborhoods.

 

Okay, so enough with the lukewarm reception, because now it’s going to get downright chilly in here.  Surprisingly, some very large illegal grow operations have been taken down in Southern Oregon by law enforcement in recent years—particularly Jackson County.  These raids don’t only include the illegal grows themselves, but also what are called “narco slaves.”  These are agricultural laborers who are forced to work in these poor living conditions for extended periods of time under threats of constant violence. 

 

Narco Slaves, Organized Crime, & Social Impact

 

Narco Slaves:   https://abcnews.go.com/US/narco-slaves-migrant-workers-face-abuse-oregons-cartel/story?id=95069523

 

Exploited Workers, https://www.politico.com/news/magazine/2022/10/02/weed-cannabis-undocumented-immigrants-00059827

 

Captives of Cannabis, https://www.nbc.com/nightly-news-films/video/captives-of-cannabis-human-trafficking-in-the-marijuana-industry-part-2/NBCN606981904

 

Modern Day Slaves:  https://www.forbes.com/sites/markjoyella/2022/09/30/nbcs-jacob-soboroff-discovers-ties-between-marijuana-industry-and-modern-day-slaves/?sh=23bab26039c4

 

The Reality of Legal Weed in California, https://www.latimes.com/california/story/2022-09-08/reality-of-legal-weed-in-california-illegal-grows-deaths

 

US Cannabis Industry and Organized Crime, https://www.nbcnews.com/nightly-news/video/u-s-cannabis-industry-may-be-linked-to-international-organized-crime-officials-say-159567941894

 

California’s Pot Legalization Failures, https://www.latimes.com/california/story/2022-09-22/california-legal-pot-measure-has-not-met-expectations

 

Another unintended consequence of the legalization of marijuana has been the negative health effects on the young.  There is significant evidence that the adolescent brain may suffer particular harm from consumption of pot.  In some people who have a pre-existing mental health condition, the marijuana may also greatly worsen the situation—particularly in terms of violence.  A popular “shock jock” on Fox News made the argument, for example, that marijuana is what is behind the school shooters.  He got this idea from an article out of Cambridge, but he took its conclusions likely just a bit too far.  The article’s focus is individuals who are already psychotic.  It’s possible this could apply to some—or even many—of the school shooters, but the way it was presented on Fox News doesn’t exactly fill me with confidence in citing it confidently at this time.  (You might add marijuana to the list I conveyed in my own article on this topic as one additional potential factor in school shootings.)  Besides the harm it causes the body, inadvertent consumption of cannabis edibles by children is a skyrocketing reason for Emergency Room visits.

 

Health Consideration Links

 

Consumption of Marijuana Edibles Surges by Children,  https://www.nytimes.com/2023/01/04/health/children-eating-edibles-weed.html

 

Marijuana’s Effect on Adolescents, https://www.cdc.gov/marijuana/health-effects/teens.html

 

Cannabis and the Adolescent Brain, https://www.pnas.org/doi/10.1073/pnas.1920325116

 

Physical Risks of Marijuana, https://www.samhsa.gov/marijuana

 

Marijuana’s Connection to Violence, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7084484/

 

Persistent Cannabis Use and Violent Behavior, https://www.nature.com/articles/s41537-020-0104-x

 

Where Pot Became Legal, Car Accident Deaths Rose, https://www.usnews.com/news/health-news/articles/2022-07-19/where-pot-became-legal-car-crash-deaths-rose-study

 

The environmental destruction brought by illegal marijuana grows is also thoroughly documented.  One of the first times I began thinking about this issue was when a lovely lavender farm just north of us was converted to a large marijuana grow operation.  I like going out at night and star watch, so I was really taken aback by the light pollution produced by this operation.  At night, it looked like a pillar of light towering above the facility.  I briefly tried to raise concerns over this environmental harm with my state representatives, but they didn’t seem to care.  Most likely, they are on the receiving end of donations from these groups anyway.  It’s the harm of the illegal operations, though, that really deserve a closer look.  

 

Environmental Damage of Illegal Marijuana Grows

 

Legalizing Marijuana and Abating Environmental Harm: Am Overblown Promise, https://lawreview.law.ucdavis.edu/issues/50/2/Topic/50-2_Vitiello.pdf

 

The Environmental Downside of Cannabis Cultivation, https://daily.jstor.org/the-environmental-downside-of-cannabis-cultivation/

 

Reporting Illegal Grows (CA Flyer), https://nrm.dfg.ca.gov/FileHandler.ashx?DocumentID=184717&inline

Grow Lamp -Loving, Water-Sucking Marijuana Plants Aren’t So Green, https://www.bloomberg.com/news/newsletters/2022-05-09/marijuana-industry-seeks-to-lessen-its-environmental-impact

 

 

A Modest Proposal (Desalination for Oregon)

 

Unlike Jonathan Swift's work of the same name, today's post is aimed squarely at the topic of clean water management and creation in Oregon: just some food for thought, or...water for drink, if you like.  Let's begin by acknowledging that we may indeed have a problem here.  Between the wildfires of this year and last as well as the water wars of Southern Oregon's Klamath Basin, and this year's deadly heat wave, change seems to be afoot in the beautiful Pacific Northwest.  Consistent water reserves may be turning into a luxury of the past.  While I am no alarmist, and I remain somewhat skeptical of Global Warming as a process created by human beings' industrialization and development, I think it may be prudent at this time to point out some strategies or approaches that could facilitate improved clean water distribution throughout our drying state.

There's nothing quite like waking up to a morning view like this (summer 2020) to get you asking yourself some tough questions.  I lived through Mt. Saint Helens' eruption on May 18, 1980 in my hometown of Yakima, Washington; this was the closest thing I've experienced since that frightening day from my childhood.  While there is certainly a lot of blame to go around--e.g. lack of comprehensive forest management--let's focus on one particular option that might offer a degree of hope.

Desalination is something that everyone has heard of, but people may not understand the degree to which it is being successfully utilized now through cutting edge technology offered by companies such as IDE Technologies and sharp researchers such as Oregon State University's Bahman Abassi .  There have been some phenomenal minds working on this, and the technology is ready to go.  Already, desalination of seawater is being used successfully all around the world--from Israel to Carlsbad.  As far as Oregon's geography and culture, however, I'd suggest that two central obstacles remain--not counting the price tag.

First, Oregonians care deeply about their amazing environment.  Constructing a large industrial facility on the Oregon Coast is going to take some persuasion, and legitimate concerns need to be considered before any shovel ready project can begin.  Environmental concerns on an Oregon desalination project would include site placement, water quality impact, wildlife impact (including whales, sea lions, salmon, etc.), and perhaps even electricity drain on local systems.  I propose using the term sustainable desalination, because it seems that is what is truly within reach.  

For instance, the leftover water and solids routinely returned to the ocean may have a negative impact on the salinity levels of the water for local wildlife.  This can, at least partially, be offset by selling the sea salt on the retail market, potentially also defraying the startup costs.  Think of it, you could cook with Oregon sea salt, thereby helping to support a worthwhile venture for your home state.  As I believe there are already companies in Oregon that create sea salt from our Pacific waters, perhaps mutually beneficial arrangements could be created between the concerned parties: take and sell the resulting salt for a fee that would go towards supporting the project's continuing costs and particularly its required startup investment in machinery, equipment, property, and construction.

Sustainable to me could also include a solar array that creates electrical independence for the desalination facility.  Granted, we'd want to ensure these arrays aren't zapping shore birds flying above, but it's at least one additional option to consider.  Electric self-sufficiency should be within the realm of possibility either now or soon, and it might prove particularly helpful in diminishing the environmental impact of the desalination facility, and helping make it more appealing to its neighbors.

Second, where to build the facility raises some interesting challenges.  If you constructed it between Florence and Newport, you could potentially utilize the Willamette River's own headwaters to facilitate the transport of the freshwater north to the Willamette Valley, since this river flows from south to north.  (I like the idea of using a river rather than pipes when feasible to do so.). Of course, the greatest water need is going to be further south in the state, so perhaps construction between Brookings and Port Orford might offer the best opportunity for transporting the freshwater east to the parched Klamath Basin.  Wherever it's situated, I don't believe it would be required that it sit particularly close to our picturesque coastline.  As in other parts of the world, large pipes could be laid carefully deep into the ocean to draw the seawater in far out at sea where the intake would pose the least risk.

In conclusion, I'll offer a tiny digression here.  For a variety of reasons, I am not a huge fan of the marijuana industry.  Whether it's the legal or illegal markets, it's not my thing.  I've seen the harm it causes people and their families, and I've seen the trouble the grow operations frequently bring to smaller, rural communities.  You may wonder what in the world does this have to do with desalination?  Well, admittedly, it's a tenuous connection, but hear me out.  As detailed in numerous news reports, this industry is particularly hard on community water systems, and illegal operations can cause damage to the water table, as I understand.  In short, there are many other temporary or emergency solutions that a state might consider in times of serious drought.  Curtailment of grow operations, along with actions such as using treated wastewater on agricultural crops, might go a long way in helping bridge the water gap for a time.  We need to all brainstorm and consider ways in which we can salvage our arid farmland and save ranchers from losing their livelihoods.  In the United States, after all, fresh water should be the least of our concerns.

As I told an inquiring college student recently, I am no scientist, nor do I play one on television...  No, I'm just a guy who wanted to share one option for potentially helping to begin to address the water crisis--before it gets even worse.  More than anything, I wished to share this idea with you all for greater discussion.  Let's talk about it and see if it makes sense to pursue.  I don't know what the next step should be, but I feel like we need to move quickly in addressing the water problem before it gets impossible to be a farmer or a rancher in Klamath County--and an ever-growing arid swath.

Oregon's Cascade Head, A Shorter Hike Option

Nature photography is particularly enjoyable when exploring new territory, but potential destinations are often made a little less attractive by the required hikes.  Sometimes it's helpful to learn the shortcuts to these beautiful spots, so that you're not quite as dead tired when you arrive!  Oregon's Cascade Head is a good case in point.

The first thing to bear in mind is that you can't really drive to Cascade Head proper.  GoogleMaps will show misleading driving directions, but you should just ignore that suggestion.  When I first tried to hike to Cascade Head--primarily to photograph ravens along the way--I mistakenly began the hike at about the lowest point I could have chosen.  Driving from Salem/Monmouth via Highway 18, I headed north at the Hwy 101 interchange towards Astoria.  After about a mile, I turned left on 3 Rocks Rd, and the trailhead was then an immediate left.  This was a gorgeous hike, but it was a bigger deal than I had anticipated.  After more than four miles of fairly steep hiking, I called it a day.  I did see some wonderful wildlife, including a family of distant ravens, but I didn't reach any ocean viewpoints by foot.  (The most popular route is apparently reached by continuing further west on 3 Rocks Rd.  This second trailhead offers a hike just over five miles one-way.)

I'd like to suggest, however, that you try a third option.  Again, driving from Salem/Monmouth via Highway 18, I headed north at the Hwy 101 interchange towards Astoria.  Rather than turning on 3 Rocks Rd, I continued up Hwy. 101's rising grade.  At about the 4-mile mark from the Hwy 18 interchange, you'll catch a Forest Service access road to the left.  (It comes up so quickly that I don't recommend trying to make a left turn from Hwy 101.  Instead, turn around at the next wide pull-out, and turn back around safely.)

At this point, you'll see the sign above.  Follow the gravel road carefully the three miles towards the Nature Conservancy Trail.  While the drive is a little bumpy, the scenery is as attractive as one would expect.  (Remember that traffic will suddenly appear heading the opposite direction, so be careful about taking your eyes off the road for more than a second or two.)

After three miles, you will see the trailhead sign pictured to the left.  From this point, the trail to Cascade Head is a fairly easy one mile hike.  Watch for birds and deer along the way and enjoy the peaceful and serene setting.  

A question I have for my readers concerns star-watching from Cascade Head.  Has anyone done this before?  From the signage to the left, it looks like one might risk being blocked by a closed gate at the end of the evening, but I don't know if this particular worry is valid.  (I've reached out to the Siuslaw Nat'l Forest.)

Enjoy your visit!

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Small Business in Oregon: The LLC

This is an experimental public service post.  Depending upon feedback, the series may / may not continue.

Have you been thinking of starting an LLC in Oregon, but you didn't know quite where to start? This is one of my first small business themed post, but I hope you find the information offered helpful. Please note that this post is my personal work only, and it does not necessarily reflect the views or opinions of my employer. Visitor statistics and feedback will be reviewed later to see whether, or not, this will continue as a series. None of this information should replace the professional advice received from a reputable attorney or CPA.


As soon as you have met with your CPA and/or attorney, it's time for you to register your business name(s). This registration is done through the Oregon Secretary of State Corporation Division's Business Information Center. Besides registering your business name, you can also register at this same time for your Business Identification Number--used for state tax reporting. Alternatively, you can also use the paper form of the Combined Employer Registration and fax the completed form in as instructed. Bear in mind, though, that using the paper form will create a significant processing delay for you. Completing the online form will result in you obtaining your Business Identification Number (BIN) much more efficiently, but the decision is yours. The Oregon Department of Revenue (DOR) will issue the BIN, and the Oregon Employment Department (OED) will review and send a Notice of Determination (NOD) some time later. This explains how and when your company becomes subject to Oregon Unemployment Tax program. You don't need to wait for the NOD, however. As long as you have your BIN, you can file and pay your quarterly taxes. If you don't want to send checks, you can also pay using the DOR's EFT System.


You're already likely familiar with the federal taxes, but what about state taxes? What do you need to know? There are several different of categories of payroll taxes in Oregon, and it's possible that they won't all apply to you: Oregon State Withholding, Unemployment Tax, Workers Compensation, Tri-Met (Portland Metro), Lane Transit (Eugene Metro), and Canby Transit. Today, we're going to focus more on Unemployment Tax than the other tax programs. This may also be a good time to read the Oregon Business Guide.


Oregon LLCs


Did you know that, unless they elect to be covered, LLC members are excluded from Unemployment Tax by default? (See ORS 657.044(c) and Corporations and Limited Liability Companiesflyer.) This means, of course, that if it's only llc members working, you should not be reporting or paying Unemployment Tax. Leave column A blank; don't include zeros, or this will delay return processing at OED. Reporting correctly as an llc will save you a considerable amount of money each year, and it will also ensure that your reports are processed much more quickly and efficiently, because manual corrections won't be required.  


LLCs and the Federal Election

One other thing to remember concerns the federal election of the llc, since the limited liability company is a disregarded entity for IRS purposes.  This federal election has no bearing on how the OED recognizes your company.  In other words, it's like the IRS looks at the llc and sees a corporation, partnership, etc. (whatever you have elected), but Oregon looks at the llc...and sees an llc.  Since corporate officers are reportable employees in Oregon, this is a really important distinction for you to clearly understand.  The LLC is always an LLC with regards to the UI Tax program.  (DOR will recognize the entity the same as the IRS.)


A Few Word About Independent Contractors


One of the most confusing areas for new businesses is making the distinction between employee/employer or independent contractor. Making a mistake here can be expensive and time-consuming to correct. In order for someone to be correctly classified as an independent contractor in Oregon, the person must represent an independent and established business within the same industry in which they are providing services. If the potential "independent contractor," is just a fellow off the street, then you're likely looking at a relationship better categorized as employer/employee.



Ministers and Oregon Independent Contractor Law 

Because of this being an area of special interest, I am adding it here. As religious organizations would not usually be llcs, this may appear again if this series continues.

A Quick History Lesson

Before the Oregon Supreme Court’s decision in 2000 (See Newport Church of the Nazarene v. Gordon Hensley and the Oregon Employment Department.), ministers were excluded from Unemployment Tax, making ministers ineligible for unemployment benefits. A key part of the court’s decision is provided below.

In sum, we conclude that, in purporting to draw a distinction between church ministers and leaders of other religious organizations, ORS 657.072(1)(b) violates Article I, sections 2, 3, and 20, of the Oregon Constitution. In light of that conclusion, and in accordance with Salem College and Rogue Valley, we construe the statute consistently with OAR 471-031-0090 (1996) to include both ministers and leaders of other religious organizations in Oregon's unemployment compensation program…

Are Ministers Independent Contractors?

Since the above court decision, there’s frequently confusion when it comes to reporting ministers. The first thing to bear in mind is that ministers are no longer automatically excluded; that’s the result of the Oregon Supreme Court decision. If their compensation is to be excluded from unemployment tax at all, it would hinge on whether, or not, they are indeed independent contractors in accordance to ORS 670.600.

When it comes to ministers, however, it may prove difficult to establish that they are truly independent and free from direction and control in the services they perform. While the independent contractor flyer is an excellent reference, these services often require a more detailed review. Frequently, for example, most churches and religious organizations have doctrinal positions that are defined and established. The pastor who decides on a whim to preach counter to the established doctrinal beliefs of his denomination may risk censure or termination.

On the other end of the religious spectrum, some denominations may assert that their ministers are free to preach any teaching at all. Even for universalists, however, the acceptance of all pathways leading to the same spiritual end is a position which excludes other religious beliefs and positions. In other words, even if an organization were to make the argument that they have no particular set of core beliefs, that they’re open to considering all other faiths and religions, this lack of adherence to a central doctrine becomes (in effect) their doctrine. It’s also difficult to say that you are accepting of everything, because many faiths and traditions are inherently contradictory in nature. In short, then, it’s not an easy thing to establish complete freedom from direction and control for ministers. It may not be readily apparent, but there are almost always either defined or undefined expectations to consider.

What about housing allowances, stipends, and reimbursements?

For UI Tax purposes, housing allowance payments will always be subject. Even if the parsonage was owned by the church and the minister was simply allowed to live there rent free, the fair market value of the rent should be reported as wages for UI Tax.

Stipends are considered subject wages and should always be reported. Honorariums paid to the minister directly are subject if paid by the church or employing enterprise.

Actual reimbursements are excluded as long as there is a valid and written accountable plan, which is consistently followed.

The IRS’ Minister Audit Technique Guide may be of some use, but bear in mind that federal income tax rules often are different from state unemployment tax rules.

Starting an LLC in Oregon?

Have you been thinking of starting an LLC in Oregon, but you didn't know quite where to start? This is my first small business themed post, but I hope you find the information offered helpful. Please note that this post is my personal work only, and it does not necessarily reflect the views or opinions of my employer. Visitor statistics and feedback will be reviewed later to see whether, or not, this series will continue. None of this information should replace the professional advice received from a reputable attorney or CPA.


As soon as you have met with your CPA and/or attorney, it's time for you to register your business name(s). This registration is done through the Oregon Secretary of State Corporation Division's Business Information Center. Besides registering your business name, you can also register at this same time for your Business Identification Number--used for state tax reporting. Alternatively, you can also use the paper form of the Combined Employer Registration and fax the completed form in as instructed. Bear in mind, though, that using the paper form will create a significant processing delay for you. Completing the online form will result in you obtaining your Business Identification Number (BIN) much more efficiently, but the decision is yours. The Oregon Department of Revenue (DOR) will issue the BIN, and the Oregon Employment Department (OED) will review and send a Notice of Determination (NOD) some time later. This explains how and when your company becomes subject to Oregon Unemployment Tax program. You don't need to wait for the NOD, however. As long as you have your BIN, you can file and pay your quarterly taxes. If you don't want to send checks, you can also pay using the DOR's EFT System.


You're already likely familiar with the federal taxes, but what about state taxes? What do you need to know? There are several different of categories of payroll taxes in Oregon, and it's possible that they won't all apply to you: Oregon State Withholding, Unemployment Tax, Workers Compensation, Tri-Met (Portland Metro), Lane Transit (Eugene Metro), and Canby Transit. Today, we're going to focus more on Unemployment Tax than the other tax programs. This may also be a good time to read the Oregon Business Guide.


Oregon LLCs


Did you know that, unless they elect to be covered, LLC members are excluded from Unemployment Tax by default? (See ORS 657.044(c) and Corporations and Limited Liability Companies flyer.) This means, of course, that if it's only llc members working, you should not be reporting or paying Unemployment Tax. Leave column A blank; don't include zeros, or this will delay return processing at OED. Reporting correctly as an llc will save you a considerable amount of money each year, and it will also ensure that your reports are processed much more quickly and efficiently, because manual corrections won't be required.  


LLCs and the Federal Election

One other thing to remember concerns the federal election of the llc, since the limited liability company is a disregarded entity for IRS purposes.  This federal election has no bearing on how the OED recognizes your company.  In other words, it's like the IRS looks at the llc and sees a corporation, partnership, etc. (whatever you have elected), but Oregon looks at the llc...and sees an llc.  Since corporate officers are reportable employees in Oregon, this is a really important distinction for you to clearly understand.  The LLC is always an LLC with regards to the UI Tax program.  (DOR will recognize the entity the same as the IRS.)


A Few Word About Independent Contractors


One of the most confusing areas for new businesses is making the distinction between employee/employer or independent contractor. Making a mistake here can be expensive and time-consuming to correct. In order for someone to be correctly classified as an independent contractor in Oregon, the person must represent an independent and established business within the same industry in which they are providing services. If the potential "independent contractor," is just a fellow off the street, then you're likely looking at a relationship better categorized as employer/employee.



Ministers and Oregon Independent Contractor Law

Because of this being an area of special interest, I am adding it here. As religious organizations would not usually be llcs, this may appear again if this series continues.

A Quick History Lesson

Before the Oregon Supreme Court’s decision in 2000 (See Newport Church of the Nazarene v. Gordon Hensley and the Oregon Employment Department.), ministers were excluded from Unemployment Tax, making ministers ineligible for unemployment benefits. A key part of the court’s decision is provided below.

In sum, we conclude that, in purporting to draw a distinction between church ministers and leaders of other religious organizations, ORS 657.072(1)(b) violates Article I, sections 2, 3, and 20, of the Oregon Constitution. In light of that conclusion, and in accordance with Salem College and Rogue Valley, we construe the statute consistently with OAR 471-031-0090 (1996) to include both ministers and leaders of other religious organizations in Oregon's unemployment compensation program…

Are Ministers Independent Contractors?

Since the above court decision, there’s frequently confusion when it comes to reporting ministers. The first thing to bear in mind is that ministers are no longer automatically excluded; that’s the result of the Oregon Supreme Court decision. If their compensation is to be excluded from unemployment tax at all, it would hinge on whether, or not, they are indeed independent contractors in accordance to ORS 670.600.

When it comes to ministers, however, it may prove difficult to establish that they are truly independent and free from direction and control in the services they perform. While the independent contractor flyer is an excellent reference, these services often require a more detailed review. Frequently, for example, most churches and religious organizations have doctrinal positions that are defined and established. The pastor who decides on a whim to preach counter to the established doctrinal beliefs of his denomination may risk censure or termination.

On the other end of the religious spectrum, some denominations may assert that their ministers are free to preach any teaching at all. Even for universalists, however, the acceptance of all pathways leading to the same spiritual end is a position which excludes other religious beliefs and positions. In other words, even if an organization were to make the argument that they have no particular set of core beliefs, that they’re open to considering all other faiths and religions, this lack of adherence to a central doctrine becomes (in effect) their doctrine. It’s also difficult to say that you are accepting of everything, because many faiths and traditions are inherently contradictory in nature. In short, then, it’s not an easy thing to establish complete freedom from direction and control for ministers. It may not be readily apparent, but there are almost always either defined or undefined expectations to consider.

What about housing allowances, stipends, and reimbursements?

For UI Tax purposes, housing allowance payments will always be subject. Even if the parsonage was owned by the church and the minister was simply allowed to live there rent free, the fair market value of the rent should be reported as wages for UI Tax.

Stipends are considered subject wages and should always be reported. Honorariums paid to the minister directly are subject if paid by the church or employing enterprise.

Actual reimbursements are excluded as long as there is a valid and written accountable plan, which is consistently followed.

The IRS’ Minister Audit Technique Guide may be of some use, but bear in mind that federal income tax rules often are different from state unemployment tax rules.


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