Oregon Revised Statutes

Or. Rev. Stat. § 316.197 (2026)

Payment to department by employer; interest on delinquent payments

✓ current as of May 2026
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      316.197 Payment to department by employer; interest on delinquent payments. (1)(a) Except as provided under ORS 316.191 or paragraph (b) of this subsection, within the time that each employer is required to pay over taxes withheld for federal income tax purposes for any period, the employer shall pay over to the Department of Revenue or to a financial agent of the department the amounts required to be withheld under ORS 316.167, 316.172 and 320.550 for the same period. Any employer not required to withhold federal income taxes for any period but who is required to deduct and retain amounts from wages paid to an employee under ORS 316.167, 316.172 and 320.550 for the same period shall pay over to the department, or financial agent of the department, taxes withheld for the period, within the time and in the manner, as if the employer were required to withhold taxes for the period under federal law.

      (b) Notwithstanding the provisions of paragraph (a) of this subsection, any employer of agricultural employees who is not required to withhold federal income taxes for any period but who is required to deduct and retain amounts from wages paid to those employees under ORS 316.167 and 316.172 shall pay over to the department, or financial agent of the department, taxes so withheld at the same time and for the same period for which the employer is required to pay over employer and employee taxes under chapter 21 of the Internal Revenue Code (Federal Insurance Contributions Act).

      (2) Every amount so paid over shall be accounted for as part of the collections under this chapter. No employee has any right of action against an employer in respect of any moneys deducted from wages and paid over in compliance or intended compliance with this section.

      (3) If any amount required to be withheld and paid over to the department is delinquent, interest shall accrue at the rate prescribed under ORS 305.220 on that amount from the last day of the month following the end of the calendar quarter within which the amount was required to be paid to the department to the date of payment. The provisions of this subsection shall not relieve any employer from liability for a late payment penalty under any other provision of law. [1969 c.493 §31; 1975 c.594 §1; 1982 s.s.1 c.1 §2; 1983 c.697 §1; 1985 c.87 §4; 1989 c.901 §7; 2017 c.750 §122e]

Notes of Decisions
Cited in 10 cases, 1982–2020 · leading case: Fredrickson v. Starbucks Corp., 429 P.3d 727 (Or. 2018).
Fredrickson v. Starbucks Corp., 429 P.3d 727 (Or. 2018). “26 USC § 3403 ; 26 USC § 3102 (b) ; ORS 316.197(2). In response to Starbucks' preemption argument, plaintiffs abandoned any claim for damages in the form of a refund or return of withheld wages.”
Robblee v. Dep't of Revenue, 942 P.2d 765 (Or. 1997). “ORS 316.197(l)(a). ORS 316.207(3) describes the procedure when an employer files a withholding tax return but pays less than all the taxes due as shown in the return: “(a) In the case of an employer that is assessed pursuant to the provisions of ORS 305.”
McCormick v. Dep't of Revenue, 10 Or. Tax 380 (Or. T.C. 1987). “167(1) which provides: “(1) Every employer at the time of payment of wages to an employee shall deduct and retain from such wages an amount determined * * ORS 316.197(l)(a) which provides: “(l)(a) * * * the employer shall pay over to the department * * * the amounts required to…”
Ooma, Inc. v. Dept. of Rev., 24 Or. Tax 48 (Or. T.C. 2020). “167 (requiring employer to with- hold tax from wages); ORS 316.197 (requiring employer to remit withheld tax); ORS 316.”
Robblee v. Dep't of Revenue, 13 Or. Tax 505 (Or. T.C. 1996). “ORS 316.197. ORS 316.207 expressly provides that withheld taxes are held by the employer “in trust for the State of Oregon.”
Fredrickson v. Starbucks Corp., 980 F. Supp. 2d 1227 (D. Or. 2013). · cites it 2× “4 Like the federal Tax Code, Oregon law similarly provides, “No employee has any right of action against an employer in respect of any moneys deducted from wages and paid over in compliance or intended compliance with [the employer’s tax collection and remittance obligations].”
Martin v. Dep't of Revenue, 655 P.2d 168 (Or. 1982). “ORS 316.197. These reports and payments were required by the end of April, July, October and January.”
Softtech, LLC v. Dep't of Revenue (Or. T.C. 2014). · cites it 2× “The employer payment and reporting requirements are essentially reiterated in ORS 316.197 and ORS 316.202. Subsection (3) of ORS 316.”
Gantes v. Dep't of Revenue (Or. T.C. 2012). “ORS 316.197(3). When, as here, the employer fails to remit any amount withheld, “the department may issue a notice of liability to any officer, employee or member described in ORS 316.”
Langston v. Dep't of Revenue (Or. T.C. 2014). “167 and remit those monies to the Department in accordance with the provisions of ORS 316.197 (which generally require remittance on a quarterly basis).”
— Or. Rev. Stat. § 316.197(2) — 2 cases
Fredrickson v. Starbucks Corp., 429 P.3d 727 (Or. 2018). “26 USC § 3403 ; 26 USC § 3102 (b) ; ORS 316.197(2). In response to Starbucks' preemption argument, plaintiffs abandoned any claim for damages in the form of a refund or return of withheld wages.”
Fredrickson v. Starbucks Corp., 980 F. Supp. 2d 1227 (D. Or. 2013). “4 Like the federal Tax Code, Oregon law similarly provides, “No employee has any right of action against an employer in respect of any moneys deducted from wages and paid over in compliance or intended compliance with [the employer’s tax collection and remittance obligations].”
— Or. Rev. Stat. § 316.197(3) — 1 case
Gantes v. Dep't of Revenue (Or. T.C. 2012). “ORS 316.197(3). When, as here, the employer fails to remit any amount withheld, “the department may issue a notice of liability to any officer, employee or member described in ORS 316.”
— Or. Rev. Stat. § 316.197(l)(a) — 2 cases
Robblee v. Dep't of Revenue, 942 P.2d 765 (Or. 1997). “ORS 316.197(l)(a). ORS 316.207(3) describes the procedure when an employer files a withholding tax return but pays less than all the taxes due as shown in the return: “(a) In the case of an employer that is assessed pursuant to the provisions of ORS 305.”
McCormick v. Dep't of Revenue, 10 Or. Tax 380 (Or. T.C. 1987). “167(1) which provides: “(1) Every employer at the time of payment of wages to an employee shall deduct and retain from such wages an amount determined * * ORS 316.197(l)(a) which provides: “(l)(a) * * * the employer shall pay over to the department * * * the amounts required to…”
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