POLICIES REGARDING ACCRUAL OF PENALTIES

Statutes.

“Except where inconsistent with this section, the terms and conditions of chapter 151A which are applicable to the payment and collection of contributions shall apply to the same extent to the payment and collection of any obligation under this section.” G.L. c. 149, §188(d).

“With respect to the calendar years beginning after December thirty-first, nineteen hundred and eighty-eight, if any employer fails to pay when due any amount required of such employer under this chapter, such overdue amount shall carry interest at the rate of twelve percent per annum or such adjusted rate as is established under section thirty-two of chapter sixty-two C in effect for the calendar year, whichever is the greater.” G.L. c. 151A, §15(a).

 “Pending an appeal decision, the division of unemployment assistance shall not continue to accrue or collect interest, penalties or fees on the fair share contribution.” G.L. c. 149, §188(g).


Policies Pursuant to G.L. c. 149, §188(d) and (g) and G.L. c. 151A, §15(a).

  1. An employer which fails to pay any portion of its fair share contributions when due shall be assessed a penalty of 12% per annum on the overdue amount. This penalty shall accrue from the filing due date until the date paid.
  2. However, effective November 5, 2012, if for any appealed filing period:
    1. The employer filed timely, cooperated with any and all audit proceedings, and otherwise complied with applicable statutes and the requirements of 430 CMR 15.00 or 114.5 CMR 16.00; and
    2. The appeal results in a final decision which reduces the determined or assessed amount,
      no penalty shall accrue for that filing period from the date of the lowest administrative decision appealed to the date of the final decision, except as provided in subsection (4) of this policy.
  3. The penalty shall accrue from the filing due date until the date paid in cases in which the employer withdraws its appeal, the employer’s appeal is dismissed or the employer is defaulted.
  4. In the event that a Court remands a case for audit or a new hearing, the penalty shall accrue from the day after the Court order until the date paid or the date of a subsequent appeal.