H. B. 4621
(By Delegate Michael)
[Introduced February 22, 2000; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend and reenact section seventeen, article five,
chapter twenty-one-a of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to
allowing for the waiving of interest and penalties on
delinquent unemployment compensation contributions if they
are paid, or a payment agreement is entered into, by the
thirty-first day of December, two thousand.
Be it enacted by the Legislature of West Virginia:
That section seventeen, article five, chapter twenty-one-a
of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, be amended and reenacted to read as
follows:
ARTICLE 5. EMPLOYER COVERAGE AND RESPONSIBILITY.
§21A-5-17. Interest and rate on past-due payments; penalties
for late payment and reporting; waiver of interest
and penalties.
(a) Payments, including penalties, unpaid on the date on
which due and payable, as prescribed by the commissioner, shall
bear interest at the rate of one percent per month until payment
plus accrued interest is received by the commissioner. Interest
shall be compounded quarterly until payment plus accrued interest
is received by the commissioner.
Interest collected pursuant to this section shall be paid
into the employment security special administration fund.
(b) Each employer who fails to timely pay, in whole or in
part, the contribution due with any report for any quarter
commencing on and after the first day of July, one thousand nine
hundred ninety-six, shall pay a late payment penalty of the
greater of fifty dollars or ten percent of the contribution due,
but not to exceed five hundred dollars. Such The late penalty is
due immediately along with the payment of the outstanding amount
of contribution. Penalties collected pursuant to this section
shall be paid into the unemployment compensation trust fund.
(c)(1) The commissioner may waive the interest and penalties
assessed on delinquent contributions incurred prior to the first
day of January, two thousand, if:
(A) All delinquent contributions, incurred through the date
of payment, are paid between the first day of July, two thousand,
and the thirty-first day of December, two thousand; and
(B) The employer has submitted all required wage reports due
as of the date of payment.
(2) An employer who owes delinquent contributions, interest
or penalties prior to the first day of January, two thousand, may
enter into an agreement with the commissioner before the
thirty-first day of December, two thousand, providing for the
payment of all delinquent contributions within twelve months of
entering into the agreement. If the employer complies with the
agreement the interest and penalties attributed to the delinquent
contributions shall be waived. The agreement must provide for an
initial payment, to be made at the time the agreement is entered
into, of at least ten percent of the delinquent contributions.
Interest continues to accrue on the delinquent contributions
until the delinquent contributions are paid in full.
NOTE: The purpose of this bill is to provide an amnesty
period for employers who owe delinquent unemployment compensation
contributions. If they pay the full amount of the delinquent
contributions, or enter into a payment agreement, by December 31,
2000, interest and penalties are waived.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.