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SECTION 7: PENALTIES

How will I know if my report or payment will be on time?
If you mail the report or payment on the due date, it is very important that you find out when mail will be postmarked. Late penalties and interest will be assessed if postmarked after the due date.

If you send in your payment with the payroll report, your payment information will normally be posted to our system within 7 business days of mailing. Your account will be credited with the payment as of the day of receipt.

What is the penalty for failure to remit reports and tax by the due date?
You should file as quickly as possible. If you fail to file, your account may be assessed the following penalties and interest:
> Failure to file the UI quarterly report by the due date = late filing penalty of $25;
> Interest on tax not paid when due = 1.5% per month or any portion of the month, 18% per annum;

The following example illustrates how penalty and interest is calculated:

$100 Balance Due Paid 2 Months Late:
   
Late File Penalty: (flat rate) =
  25.00
Interest: $100 x 1.5% x 2 mos. =
  _3.00
Penalty and Interest Due =
$ 28.00

If you have a good reason for being late, you may request a waiver of penalty. The UI Contributions Bureau will then determine whether to grant the waiver or not. As a general rule, not having the necessary forms is not an acceptable reason for a waiver.

Are there other penalties?
The UI Contributions Bureau may issue a subpoena or file a jeopardy assessment if an employer who refuses or fails to file their quarterly report or provide requested information.   If the UI Contributions Bureau must take either of these actions, the employer is assessed a $50 penalty. If an employer fails to honor the subpoena, an additional $100 penalty will be assessed.

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