1. (1) On or after January 1, 1988, a qualified employer who fails to pay each contribution due for the "applicable fiscal year" will be assigned a contribution rate equal to the overall contribution rate or the assigned contribution rate, plus an additional 1% surcharge.

   1. (a) As used in this section, "applicable fiscal year" means the four consecutive calendar quarters in the fiscal year immediately preceding the computation date.
   2. (b) Unpaid contributions for fiscal years preceding the applicable fiscal year have no effect on the employer's rate, as provided in Subsection 35A-4-303(9)(b).
2. (2) Contributions assessed for the applicable fiscal year after the rates are computed will not cause the 1% surcharge to be added to the rate for the following year.
3. (3) A qualified employer who has been assigned the 1% surcharge in addition to the employer's overall contribution rate because of delinquent contributions for the applicable fiscal year shall be reassigned a rate based upon the employer's own experience, as provided under the experience rating provisions of the Act, effective the first day of the quarter in which full payment of contributions due is made. The Department will reassign a rate effective January 1 of the year if the Department determines that the party liable for the delinquent contributions was not properly notified of the liability.

4. (4) Delinquent Reports - Effect on Rate.

   1. (a) A delinquent report is one that is not properly filed when due.
   2. (b) Failure to file the delinquent report by the time the contribution rates are computed will be treated as if a report had been filed showing no payroll for that quarter and will usually result in a higher contribution rate.
   3. (c) Failure to file the delinquent report by the end of the calendar year will not result in adding the 1% surcharge to an employer's overall contribution rate as a penalty. Other penalties and interest may be assessed under Section 35A-4-305.

KEY: unemployment compensation, rates

Date of Last Change: April 21, 2022

Notice of Continuation: June 9, 2022

Authorizing, and Implemented or Interpreted Law: 35A-4-303