Are there penalties for late filing or underpayment of Virginia UI taxes?

Yes. Virginia imposes penalties and interest for both late filing and underpayment of Unemployment Insurance (UI) taxes:

1. Late Filing Penalty: Employers who fail to submit the quarterly UI report by the due date may incur monetary penalties based on the amount of tax due.

2. Underpayment Penalty: If the UI taxes paid are less than the required amount, interest accrues on the unpaid balance from the original due date.

3. Combined Penalties: Repeated late filings or significant underpayments may result in additional fines or enforcement actions by the Virginia Employment Commission (VEC).

To avoid penalties, employers should file accurate reports and pay taxes on time each quarter.