Penalties for late or incomplete tax payments and reports

Avoid penalties for not paying your unemployment taxes or filing your quarterly report on time. In some cases, you can ask us to waive a penalty.

Learn how to file your quarterly tax and wage report if you are not sure where to start.

Late taxes

Quarterly tax and wage reports and payments are due on the last day of April, July, October and January. If your tax payment is late, we will charge you interest at a rate of 1% of total taxes due per month.

We also charge a late payment penalty fee for overdue taxes:

  • First month: 5% of total taxes due or $10, whichever is more.
  • Second month: An additional 5% of total taxes due or $10, whichever is more.
  • Third month: An additional 10% of total taxes due or $10, whichever is more.

Late reports

Be sure to file a tax and wage report on time every quarter. If you have no payroll in a quarter, file a no-payroll report. We charge a $25 penalty for each late report.

Reports with errors

When filing a report, be careful to avoid any errors. Otherwise, you may have to pay a penalty. The most common errors we see are:

  • Reports with missing information.
  • Reports using the wrong form.

Penalties for errors

We send a warning letter the first time you submit a report with errors. After that, we charge a penalty.

2 reports with errors

  • If you owe taxes: 10% of taxes due, $75 to $250.
  • If you do not owe taxes: $75.

3 reports with errors

  • If you owe taxes: 10% of taxes due, $150 to $250.
  • If you do not owe taxes: $150.

4 or more reports with errors

  • Whether or not you owe taxes: $250.

Monthly statements

If your account is overdue and you owe $5 or more, we will send you a monthly statement showing all interest and penalty fees you owe. We will also send a statement if you have not filed your quarterly report.

How to avoid penalties

File your taxes online

You are less likely to make mistakes if you file your taxes online. The software highlights missing information. Read the employer's guide to paying taxes to learn more.

Fill out all required information

Every quarter, report each employee's:

Use the correct paper forms

You can avoid format issues by using a form we provide. Our scanning equipment cannot read other forms, including photocopies.

To request paper forms:

Request a tax penalty waiver

In some cases, you can ask us to waive penalties for filing a late report or tax payment.

Acceptable reasons to request a waiver

You may request that we waive penalty or interest charges if you:

  • Mailed your report or payment on time but to the wrong agency.
  • Were late because a death or serious illness occurred before the filing deadline. The person who died or was seriously ill was:
    • The employer.
    • The employer's accountant.
    • A member of the employer or accountant's immediate family.
  • Were late because a disaster destroyed your business or business records.
  • Were late because of theft or financial crimes by an employee or someone who handles your taxes.
  • Believe we made an error.

How to request a waiver

You can request a waiver through our online form or by writing us a letter or an email.

Request a waiver online

  1. Go to our online message form.
  2. Select 'Request a Tax Penalty Waiver' from the dropdown list in the 'Message' box.
  3. Provide all of the requested information.

Request a waiver by email, mail or fax

  1. Write a letter explaining the situation.
  2. Include the following information:
    • Name.
    • Phone number.
    • Business name.
    • Mailing address.
    • Employment Security number (ES number).
    • Quarter and year you are requesting a waiver for.
    • Reason you believe you should not be charged penalties or interest.
    • Your signature.
  3. Send your waiver by:
    Email

    Email your request to UIfiles@esd.wa.gov.

    Mail

    Mail your request to:

    Employment Security Department
    UI Tax and Wage Administration
    P.O. Box 9046
    Olympia WA 98507-9046

    Fax

    Fax your request to 800-794-7657.

If we deny your request

You can file an appeal if you disagree with our decision to deny your waiver. See how to appeal an unemployment tax decision.

Avoid other penalties

We want to help you avoid any penalties! Be aware that the law requires us to charge penalties for:

Laws and rules that apply

Go to the Washington State Legislature website to read these laws and rules.