Job & Family Services Office of Unemployment Insurance Operations
Consequences of Failure to File and Pay UI Tax Reports Timely

Information supplied by employers on quarterly reports is used to determine annual rates. Employers who have not furnished wage information necessary for computation of their experience rate by September 1 of each year will be assigned a Delinquency Rate equal to 125% of the maximum experience rate possible for the coming year.
Wage reports provide the basis for possible benefit claim awards. Inaccurate and untimely reports will create additional reporting for the employer, delays in benefit payments and increased costs associated with report and benefit processing.
A penalty (forfeiture) will be assessed for not filing a complete Quarterly Wage Report when due. The forfeiture will amount to twenty-five one-hundredths of one percent (.25 percent) of the total wages reported. The minimum penalty for failure to file a quarterly report when due is $50 and the maximum is $1000.
Employers are urged to file the quarterly reports when due, even if the taxes cannot be paid. Although the unpaid taxes will accrue interest, the penalties can be avoided when reports are filed timely. Interest will accrue on the unpaid taxes as well as any unpaid penalties at the annual rate of 14%, compounded monthly.

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Under certain circumstances a
waiver of penalty may be granted for the untimely filing of the quarterly report if a written request is submitted within four years of when the penalty was assessed. Interest may also be waived if the employer submits a written request for waiver and meets other statutory requirements within 30 days of the interest assessment.