Unpaid contributions, interest rate due, abatement during extensions
When a business owes unemployment tax payments (called contributions) and does not pay on time, that debt gains extra charges called interest. The interest rate is set by federal tax rules. If the state gives the business more time to pay, the interest stops building up during that extra time. Two exceptions exist: a brand-new employer that does not refuse to file required paperwork does not owe interest until 30 days after the state tells them they owe; and a business that took over another business and ends up with a higher tax rate does not owe interest until 30 days after the state tells them they are considered a follow-up employer.
288.150. Unpaid , interest rate due, during extensions — exceptions. — Contributions unpaid for any quarter which become due and payable after the last day of the in which this act became* effective (August 28, 1994) shall bear interest at the rate established by the Internal Revenue Code 26, Section 6621(b), in effect on the date on which such became due, provided, however, that such interest shall for any period of any extension of time granted by the pursuant to the of section 288.090. Such interest shall for each month, or part of a month, after such date until payment is received by the division, except that:
(1) An not previously subject to this law, which becomes an employer and does not refuse to make the reports required under this law shall not be for such interest until thirty days after it has been notified that the division has made a that it is an employer subject to this law; or
(2) An employing unit previously subject to this law, which acquires substantially all of the business of an employer under section 288.110 and whose increases after the accounts were combined and does not refuse to make the reports required under this law shall not be liable for such interest until thirty days after it has been notified that the division has made a determination that it is a under this chapter.
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Source & history notes
(L. 1951 p. 564, A.L. 1982 H.B. 1521, A.L. 1994 S.B. 559, A.L. 1998 S.B. 922) Effective 1-01-99 *Word "becomes" appears in original rolls.
Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.