Employee contributions are based on an individual's total (gross) wages. The contributory taxable wage base ceiling does not apply to employee contributions. Employee contributions are not credited to an employer's reserve account, nor are they considered to be "contributions" for federal certification purposes under the Federal Unemployment Tax Act [FUTA].
Penalty for Filing a Report Late
A penalty is assessed against any employer who fails to submit a quarterly tax report when it is due. The penalty is 10 percent of the total contributions payable for the quarter, with a minimum of $25 and a maximum of $250.
Interest Charged on Contributions Paid Late
Interest charges are computed per month, or fraction of a month, on unpaid contributions from the date such contributions are due until the date paid. Both employer and employee contributions are subject to interest charges if paid after the due date.
2005 |
.4166% |
5.0% |
2006 - 2015 |
.75% |
9.0% |
---|
Interest charges on delinquent contributions and penalty charges on delinquent reports are separate and distinct. If you are unable to pay a quarterly report in full on the due date, you can avoid penalty charges if the report is filed on time. Interest charges will continue to accrue on any unpaid contributions balance until it is paid in full.
Penalty for Dishonored Checks and Failed Electronic Payments
Any check that is subsequently dishonored by the bank upon which it is drawn or any payment by electronic transfer that is not credited upon transmission is subject to penalty. The dishonored remittance penalty is 10 percent of the remittance amount, up to a maximum of $1,000, with a minimum of $25 per occurrence.
Penalty for Non-Compliance with Electronic Filing Requirement
A penalty is assessed against any employer who is not in compliance with the electronic filing requirements, and does not have a department-approved waiver on file. The penalty is 10 percent of the total contributions payable for the quarter, with a minimum of $25 and a maximum of $250.