Delinquent unemployment compensation tax penalty

(A) If on the computation date upon which an employer's tax rate is to be computed as provided in Section 41-31-40 there is a delinquent report, the tax class twenty rate must be assigned to the employer until the next computation date or until all outstanding tax reports have been filed. (B)(1) No employer is permitted to pay his unemployment compensation tax at a reduced tax rate class for any quarter when a tax execution issued prior to January 1, 2027, in accordance with Section 41-31-390 with respect to delinquent unemployment compensation tax for a previous quarter is unpaid and outstanding against the employer. (2) For any quarter when a tax execution issued on or after January 1, 2027, in accordance with Section 41-31-390 with respect to delinquent unemployment compensation tax for a previous quarter is unpaid and outstanding against the employer, an employer must pay his unemployment compensation tax at an increased rate of contribution that is the sum of two percent plus the employer's rate as otherwise determined pursuant to this chapter. (3) When an employer has an outstanding tax execution issued on or after January 1, 2027, and a tax execution issued prior to January 1, 2027, also remains outstanding, the tax class twenty rate must be assigned to the employer until such time as all outstanding tax executions issued prior to January 1, 2027, have been paid. (C) An employer with an outstanding tax execution who has a department-approved installment payment agreement shall be permitted to pay its unemployment compensation tax at the annual rate as determined pursuant to this chapter. However, any such employer's tax rate shall immediately revert to the applicable increased rate if the employer fails to make any one of the succeeding deferred payments or fails to submit any succeeding wage report and payment in a timely manner as required by the department-approved installment payment agreement.