Delinquency

An employer is delinquent when all required contribution and wage reports are not filed and/or payments are not submitted by the due date(s). Employers are notified on a monthly basis of any delinquency. Reports and payments may be mailed, or they may be filed online through USTAR where the employer's Statement of Account can also be reviewed.

Interest

Interest accrues at a variable rate, as established by the Internal Revenue Service, on contributions that are due and unpaid after each quarterly due date.

Assessments

Failure to file contribution and wage reports or pay tax when due will result in an assessment against the employer. A certificate of assessment may be filed in the circuit court where the employer resides or has assets. Once filed, it has the effect of a judgment upon any real or personal property of the employer.

Garnishments

By law, the Division may garnish an employer's assets to satisfy a judgment, including 100% of wages or bank account balance.

Penalties

Late Report: Because it is very important for an employer to file all contribution and wage reports timely, a penalty is imposed if an employer fails to file any required report by the last day of the month following the date the report became delinquent. The penalty is 10% of the contributions due or $100.00, whichever is greater, for each quarterly contribution and wage report not filed timely. This penalty will continue to be imposed each month or fraction of a month the report is not filed. The maximum penalty per quarter is 20% of the contributions due or $200.00, whichever is greater. This penalty is applied to all delinquent reports even when no tax or interest is due, such as those for reimbursing employers and those for employers with a rate of 0%.

An employer who cannot pay all the contributions due at the end of the quarter should file the report and make arrangements for payment with the Division's central office collections unit or local unemployment insurance auditor.

An employer who has an appeal pending should continue to file reports to include all wages, even those wages in dispute, to avoid penalties.

Fraud or Evasion: If fraud or evasion on the part of an employer is discovered, Section 288.160 of the Missouri Employment Security Law provides for an additional 25% penalty of the amount by which the state has been defrauded.

Section 288.380 of the law states any employer who intentionally misrepresents, misstates, or fails to disclose any material fact in order to deny unemployment benefits to a worker has committed fraud. It further provides the Division shall assess a penalty equal to 25% or 100% of the amount fraudulently denied.

SUTA Dumping: State Unemployment Tax Act (SUTA) dumping refers to attempts by employers to pay lower state unemployment taxes than their experience allows. The Missouri Employment Security Law bans these practices and requires the Division to impose substantial penalties on those who knowingly engage in SUTA dumping activities.

If an individual, organization or employing unit knowingly violates or attempts to violate the Employment Security Law related to determining the assignment of a contribution rate, or knowingly advises another in a manner that results in a violation of such provision, the individual, organization, or employing unit shall be subject to the following penalties:

• If an employer, then for the current year and the three rate years immediately following the current rate year, such employer’s base rate shall be the maximum base rate applicable to such type of employer, or the employer’s current base rate plus two percent, whichever is greater;
• If not an employer, such individual, organization, or employing unit shall be subject to a civil monetary penalty of not more than $5,000.