What are the Penalties When an Employer does not File the Required Reports?

To assure compliance with the Utah Employment Security Act and avoid the extra expense connected with obtaining and processing delinquent reports, the Act provides for the following penalties which attach to reports and payments not submitted when due:

  1. A penalty is assessed for failure to file Form 3, Employer's Contribution Report, within 30 days following the end of the quarter. The penalty is 5% of the contribution due if the report is filed not more than 15 days late. An additional 5% is assessed for each additional 15 days or fraction thereof that the report is late up to a maximum of 25% of the contribution due. There is a minimum filing penalty of $25.00 for any report filed late. To avoid these penalties, the report must be filed timely even though contributions may not be paid in full with the report.

  2. A penalty of 5% of the contribution due is assessed for delinquent contributions not paid when due. This is in addition to the penalty for failure to file.

  3. Interest of 1% per month is charged on contributions not paid by the due date.

  4. A penalty of $50 is charged for failure to provide a complete quarterly wage list with the Employer's Contribution Report (Form 3) or for failure to supply the wage information in the required format or for failure to provide other wage information as required.

    5. Effective July 1, 2004, a penalty of $50 will be assessed for failure to provide complete wage information or to conform to the required format. This penalty will be assessed for each failure by an employer to conform for the first 15 days or fraction thereof, that the wage filing is late or out of conformity. An additional $50 will be assessed for every 15 days that the wage information is out of compliance, but not to exceed $250 per filing.

  5. When an employer fails to comply with a request for wage or separation information, the employer may lose all rights to further notice on the claim and appeal rights with regard to eligibility determinations for claimant benefits.

  6. There is a $15 service charge on returned checks and interest of 1% per month continues to be charged on the unpaid contribution.

  7. There is a 1% rate surcharge which is added for non-payment of prior fiscal year contributions due.