Penalty & Interest (P&I)

Penalty and interest (P&I) charges are created when a tax deposit is late or underpaid. While penalties and interest are often related, they are not always assessed at the same time.

When a deposit is late or less than the amount due, the tax agency may assess a penalty and begin charging interest on the unpaid amount. The employer typically receives a tax notice detailing:

Penalty

Penalties are typically a one-time charge for the missed or late payment.

Interest

Interest accrues on the unpaid tax amount over time, following the agency’s schedule until the balance is paid in full.

Previously, Check remitted penalty and interest payments directly to agencies on behalf of companies. Effective November 1, 2025, employers will remit their own payments, while Check will reimburse employers directly in certain cases.

Check reimburses employers for:

This change ensures faster resolution and prevents additional interest from accruing while waiting for payment processing.

Tax notices typically include clear instructions for the fastest way to remit payment. The payment method can vary by agency and may include:

The goal of these notices is to make it straightforward for employers to resolve outstanding balances and return to good standing as quickly as possible.