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Effect of Missing Tax Report(s)
If any tax reports are missing from the period used to compute the rate (the four quarters ending each June 30), the UIA will compute the tax using the tax reports that are on file for that period, and will add a penalty of 3.0%. If no tax reports are on file for that period, then the UIA cannot compute the rate and the law requires the UIA to assess the employer the maximum possible tax rate, even if your experience would have resulted in a lower rate. A penalty of 3.0% is also added.
If all of the missing reports are provided within 30 days of the mailing of the Rate Determination, the rate is calculated using the missing information, and the penalty is dropped. If the missing reports are filed beyond 30 days but within 1 year, the penalty is dropped to 2.0%, but if there was "good cause" for the lateness in filing then the penalty is dropped entirely. If the missing reports are filed beyond 1 year but within 3 years, the rate is recalculated but the penalty remains at 3.0%.
If your annual tax Rate Determination shows your rate as the maximum, and the space called "See Code Below" is marked "02," a penalty has been added due to at least one missing quarterly report.
You should send in the missing report(s) within 30 days, so that your rate can be correctly computed and the penalty removed. Even if you previously submitted the report the UIA says is missing, you should send in a duplicate within the 30 days, so that your rate can be correctly computed and the penalty removed.
Also, if a quarterly tax report is missing, the credit against the federal FUTA tax cannot be applied, and the FUTA tax may be assessed at its maximum, as well.
Most reimbursing employers are billed quarterly for unemployment benefits paid to former workers during the quarter. Payment is due within either 30 or 60 days after the billing, depending on the organizational type of the employer (governmental, non-profit, school districts, etc.).