Wages are generally reported in the calendar quarter the wages are actually paid.
When Unemployment Insurance Taxes are Due
Unemployment Insurance tax must be paid quarterly by the end of the month following the calendar quarter. The due dates are:
First Quarter - April 30
Second Quarter - July 31
Third Quarter - October 31
Fourth Quarter - January 31
Requests for Extension of Time
The Director may, for good cause shown by a covered employer, grant payment extensions, not exceeding sixty (60) days. Employers must request extensions on or before the due date for the quarter on which the extension is desired.
Penalty for Late Payment
A penalty is assessed when the quarterly tax is not paid by the due date. Penalties accrue separately on each quarter at the rate of 4% of the tax due or $20.00 whichever is greater, for each month or fraction of a month delinquent. For example, contributions of $501.00 due January 31 on the fourth quarter are paid in March, two months late, penalty would be $40.08. Payments are applied to penalties first if not specifically included with the late report. This may result in a tax deficiency and accrue additional penalty when not paid promptly. Penalty is limited to no more than the amount of tax due for the quarter.
Penalty for Late Filing or Failure to File
A penalty is assessed when an employer willfully fails to file the Employer Quarterly Unemployment Insurance Tax Report when due. Repeated late filings is an indication of willfulness but it it is not the only factor used. The penalty for the first offense is the great of $75 or 25% of the tax due for the quarter; for the second offense, it is the greater of $150 or 50% of the tax due for the quarter; and the greater of $250 or 100% of the tax due for the quarter for the 3rd or higher offense. Typically when a problem is detected that may result in a failure to file penalty, a warning letter is issued to give the employer an opportunity to file and avoid the penalty.
To obtain more information about unemployment insurance taxes, contact any Department of Labor tax representative. To find the tax representative nearest you, please consult the Tax Representatives directory.