Opinion No. (1998)

DANIEL E. LUNGREN Attorney General ANTHONY M. SUMMERS Deputy Attorney General THE HONORABLE LEROY F. GREENE, MEMBER OF THE CALIFORNIA SENATE, has requested an opinion on the following question: Does the Employment Development Department have the authority to collect interest on penalties imposed for the failure to pay amounts due and owing and for the failure to file reports and forms in a timely manner? CONCLUSION The Employment Development Department has the authority to collect interest on penalties imposed for the failure to pay amounts due and owing and for the failure to file reports and forms in a timely manner. ANALYSIS The Employment Development Department ("Department") is responsible for collecting employment taxes from businesses that employ workers in California. These taxes include unemployment insurance contributions and the employment training tax, both paid by employers, and disability insurance contributions and personal income taxes, both withheld from employees' compensation and remitted to the Department by employers. In addition to paying taxes, employers are required to file with the Department various returns reporting wages paid to workers and other…