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Farm corporations

Family farm corporations

When a corporation's activities are conducted on land that receives farm-use tax assessment per Oregon law (ORS 215.203 and Chapter 308), family members who meet the following tests are not covered by your policy:

  • Identified as directors in the corporate bylaws, and 
  • Members of the same family, whether related by blood, marriage, or adoption.

To cover a family member who meets these tests, you must apply for coverage and SAIF must accept the application and name the family member on a Sole Proprietors, Partners, Officers, and Others Coverage Endorsement.

Family members who do not meet these tests are covered by your policy and their actual payroll should be included on your payroll reports.

Download the Personal Coverage Application for Nonsubject Corporate Officers form

Nonfamily officers

If there is a nonfamily officer of a farm corporation, the officer who meets the three tests listed below is not personally covered by your policy — unless SAIF receives and accepts a written application for the officer's personal election of coverage and names the officer on a Sole Proprietors, Partners, Officers, and Others Coverage Endorsement.

Coverage tests (must meet all three)

  • The corporate officer occupies a named officer position authorized in the bylaws, and 
  • The corporate officer is a director of the corporation, elected or appointed to the corporation's board of directors in accordance with its articles of incorporation or bylaws, and 
  • The corporate officer has a substantial ownership interest. Substantial ownership interest is an ownership of 10 percent or more, or an ownership equal to or greater than the average ownership of all owners.

Download the Personal Coverage Application for Nonsubject Corporate Officers form

Payroll reporting

Officers who elect coverage or officers not meeting the tests above must report actual payroll within the following limitations:

Annual reportable payroll for new and renewing policies as of January 1, 2020:

  • Minimum of: $54,600
  • Maximum of: $218,400

If your policy period is anything other than one year in length, or an officer is covered for a portion of a policy period, use the following weekly minimum and maximum amounts for the period of coverage:

Weekly reportable payroll for new and renewing policies as of January 1, 2020:

  • Minimum of: $1,050
  • Maximum of: $4,200

Compare the officer's actual payroll for the number of full and partial calendar weeks of covered work during the policy period to the minimum and maximum limitations above. Report actual payroll, but no less than the minimum, nor more than the maximum.

Contact us at 800.285.8525 for more information.      

From saif.com

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