FY2011-7: Late Penalty Interest Rate (Issued 9/29/2010)

The purpose of this memo is to advise departments as to the late penalty interest rate for July 1, 2010 - December 31, 2010.

The late penalty interest rate effective for July 1, 2010 - December 31, 2010 is 0.75%. This rate is applicable to invoices which are not paid on time in accordance with the Commonwealth's Bill Paying Policy - and General Payment Policies  and Comptroller Regulations 815 CMR 4.00.

Interest for late payments is available to all vendors of the Commonwealth. Interest on late payments is not available to employees, contract employees, recipients of public assistance, cities and towns and other public instrumentalities designated as public agencies on the Commonwealth's vendor file. For instructions on how to calculate late penalty interest payments see the link "Late Penalty Interest Rate"  located with 815 CMR 4.00.

See attached table for history of rates and instructions for late penalty interest calculations.