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Payments, Reports, Penalties & Interest
Unemployment tax payments are due the last day of the month following the end of the quarter. Unemployment tax payments only for annual domestic employers are due January 31 of each year. Employers required to deposit state withholding once each month or more may also include a payment for unemployment insurance tax. Go to UI Pub 139  for more detail.
Reports are due the same day as payments. Domestic employer reports are due quarterly or annually each year on January 31. A penalty may be assessed for any reports received after the due date. The amount of the penalty may change from year to year. For 2012, the penalty is $7 for each employee reported, the minimum penalty is $85 and the maximum penalty is $1700.
A 10 percent penalty may be assessed when an employer fails to pay tax assessed (Notice of Tax Assessment, Written Demand Notice, or a Notice of Estimated Tax Assessment) within the time prescribed. Compliance with an approved payment plan will avoid the assessment of the penalty.
Interest on payments after the due date is 1.5 percent per month on unpaid taxes. Interest is not calculated on accrued interest, penalties or legal costs, only on tax due. Interest is assessed if the payment is even one day late.
If all money owed or reports required are not received by the Employment Department prior to September 1, of each year, an additional penalty of 1 percent of the previous year’s taxable payroll will be assessed.
Funds received from an employer apply first to legal costs (including the service of warrants incurred in collecting the debt), then to penalties assessed, then to interest assessed, and lastly to unpaid tax assessed.