Interest Rate
Interest is charged on all delinquent taxes (Unemployment Insurance, Employment Training Tax, State Disability Insurance, and Personal Income Tax withholdings).
The interest rate is established pursuant to Section 19521 of the California Revenue and Taxation Code. The interest rate is adjusted semiannually based on the short-term federal rates in January and July of each year.
Interest is compounded daily on:
- All unpaid tax
- Interest
- Certain penalties
Interest is required as there is no provision in the California Unemployment Insurance Code to waive or cancel interest.
Use the daily interest factors in the table below to calculate the interest due on delinquent amounts.
| Delinquency Date | Interest Rate | Daily Interest Factor |
|---|---|---|
| 07/01/09 to 12/31/09 | 5% | 0.000137 |
| 01/01/09 to 06/30/09 | 5% | 0.000137 |
| 07/01/08 to 12/31/08 | 7% | 0.000191 |
| 01/01/08 to 06/30/08 | 8% | 0.000219 |
| 07/01/07 to 12/31/07 | 8% | 0.000219 |
| 01/01/07 to 06/30/07 | 8% | 0.000219 |
| 07/01/06 to 12/31/06 | 7% | 0.000192 |
| 01/01/06 to 06/30/06 | 6% | 0.000164 |
| 07/01/05 to 12/31/05 | 5% | 0.000137 |
| 01/01/05 to 06/30/05 | 4% | 0.000110 |
For assistance, call our toll-free number (888) 745-3886 or visit your local Employment Tax Office.