1. A. If an employer fails to pay the required contributions in the prescribed manner, the employer shall be given 30 days to cure any deficiencies and may be required to pay interest, in the amount of 1.5 percent per month or part of a month from the date on which it is due to the Division, on unpaid contributions.

2. B. If contribution deficiencies are not cured, penalties under Labor and Employment Article, §8.3-903, Annotated Code of Maryland, may be imposed as follows:

   1. (1) Assess the amount of contributions and interest, in the amount of 1.5 percent per month or part of a month from the date on which it is due to the Division;
   2. (2) Make an additional assessment in an amount not to exceed two times the contributions delinquent to the Division, as a penalty for failure to pay the contributions due; and
   3. (3) Order an audit of the employer for the immediately following fiscal year to investigate and determine compliance with Labor and Employment Article, §8.3-101, et seq., Annotated Code of Maryland.

3. C. If wage and hour report deficiencies are not cured the Division may:

   1. (1) Use the information and knowledge available to the Division to estimate the wages paid by an employer during the contribution period or periods;
   2. (2) The amount of wages so determined will be deemed to have been paid by the employer;
   3. (3) Assess the employer for contributions calculated on the basis of the estimated wages;
   4. (4) Issue a subpoena duces tecum to compel an employer to release books and records to the Division for use in obtaining the required information; and
   5. (5) Order an audit of the employer for the immediately following fiscal year to investigate and determine compliance with Labor and Employment Article, §8.3-101, et seq., Annotated Code of Maryland.

Authority: Labor and Employment Article, §§8.3-101, 201, and 601, Annotated Code of Maryland

Effective date: March 30, 2026 (53:6 Md. R. 289)