Chapter 742-8 Penalties

742-8-07 Penalties and interest under section 742.352 of the Ohio Revised Code.

(A) Pursuant to the authority outlined in division (C) of section 742.352 of the Revised Code, the board of trustees hereby modifies the statutory penalties and interest in accordance with the following provisions.

(B) Subject to the provisions of paragraph (D) of this rule, an employer with no more than twenty members shall be penalized for failing to transmit reports and payment in accordance with sections 742.32 and 742.56 of the Revised Code and corresponding administrative rules or payments in accordance with section 742.35 of the Revised Code as follows:

(1) If a report or payment is at least one but not more than fifteen days past due, fifty dollars;

(2) If a report or payment is at least sixteen but not more than sixty days past due, one hundred dollars;

(3) If a report or payment is at least sixty-one but not more than one hundred eighty days past due, the greater of five hundred dollars or two per cent of the payment.

(4) If a report or payment is at least one hundred eighty-one days but not more than two hundred forty days past due, the greater of one thousand dollars or three per cent of the payment;

(5) If a report or payment is at least than two hundred forty-one days past due, the greater of three thousand dollars or four per cent of the payment.

(C) Pursuant to division (C) of section 742.352 of the Revised Code, an employer with twenty-one or more members shall be penalized for failing to transmit reports and payment in accordance with sections 742.32 and 742.56 of the Revised Code and corresponding administrative rules or payments in accordance with section 742.35 of the Revised Code as follows:

(1) If a report or payment is at least one but not more than fifteen days past due, one hundred dollars;

(2) If a report or payment is at least sixteen but not more than sixty days past due, the greater of five hundred dollars or one per cent of the payment;

(3) If a report or payment is at least sixty-one but not more than one hundred eighty days past due, the greater of one thousand dollars or two per cent of the payment.

(4) If a report or payment is at least one hundred eighty-one days but not more than two hundred forty days past due, the greater of three thousand dollars or three per cent of the payment;

(5) If a report or payment is at least two hundred forty-one days past due, the greater of seven thousand five hundred dollars or four per cent of the payment.

(D) Notwithstanding the provisions of paragraph (B) of this rule, employers with no more than five members shall have a cap on penalties equal to five hundred dollars for each failure to transmit reports and payment in accordance with sections 742.32 and 742.56 of the Revised Code or payments in accordance with section 742.35 of the Revised Code. Such employers shall also be eligible to participate in the payment plan outlined in rule 742-7-15 of the Administrative Code to the extent that they require an additional amount of time to repay penalties and interest.

Effective: 4/7/2016
Five Year Review (FYR) Dates: 01/22/2016 and 04/07/2021
Promulgated Under: 111.15
Statutory Authority: 742.10, 742.352
Rule Amplifies: 742.352
Prior Effective Dates: 3/20/06 (Emer), 4/3/06 (Emer), 5/15/06

742-8-08 Penalties and interest under section 742.353 of the Revised Code.

(A) Pursuant to division (C) of section 742.353 of the Revised Code, the penalties assessed under sections 742.351 and 742.38 of the Revised Code shall be as follows:

(1) If a form, report, or statement is at least one but not more than fifteen days past due, one hundred dollars;

(2) If a form, report, or statement is at least sixteen but not more than sixty days past due, five hundred dollars;

(3) If a form, report, or statement is at least sixty-one but not more than one hundred eighty days past due, one thousand dollars;

(4) If a form, report, or statement is at least one hundred eighty-one days past due, three thousand dollars.

The total of the penalties paid by an employer under this paragraph in a calendar year shall not exceed twenty thousand dollars.

(B) Any amount due from an employer under paragraphs (A) of this rule shall be collected from the county auditor in the same manner as is provided in section 742.35 of the Revised Code.

(C) Employers with no more than five members that still have penalties remaining after the application of the penalty structure in paragraph (A) of this rule shall pay an amount not to exceed one thousand five hundred dollars for each failure to transmit the notice or reports in accordance with sections 742.351 and 742.38 of the Revised Code. Such employers shall be eligible to participate in the payment plan outlined in rule 742-7-15 of the Administrative Code to the extent that they require an additional amount of time to repay penalties and interest.

Effective: 7/21/2016
Five Year Review (FYR) Dates: 05/05/2016 and 07/11/2021
Promulgated Under: 111.15
Statutory Authority: 742.10, 742.353
Rule Amplifies: 742.353
Prior Effective Dates: 12/27/05 (Emer.), 1/20/06 (Emer.), 3/20/06 (Emer.), 5/05/2006, 06/30/2011

742-8-13 Special penalty provisions.

(A) In the event any of the following situations occur, which is documented by the employer to the satisfaction of OP& F's director of member services and director of financial services and the other requirements of this rule are met, this rule shall govern how OP& F will administer the penalties provided for in section 742.352 of the Revised Code or section 742.353 of the Revised Code, as permitted by the provisions of division (C) of those sections:

(1) The employer hired a new clerk within the past year and he/she did not undergo OP& F training prior to the filing that is in question;

(2) The employer is a new filer with OP& F within the past year and the employee responsible for the reports and payments to OP& F did not undergo OP& F training prior to the filing that is in question;

(3) There is an act of God (i.e. natural disaster, fire, flood.) that adversely impacts the employer's ability to timely file the report or pay the required contributions according to the governing statutory provisions, but this provision is not intended to apply to overall computer problems, a clerk being sick on or around the deadline date, and such other related items;

(4) There is a medical leave involved for the person who is responsible for filing the report and contributions with OP& F and the medical leave exceeds ninety days;

(5) Theft in office has occurred by the person responsible for the filing;

(6) The penalties arising out of the filing in question will result in the employer being declared in fiscal emergency.

(7) The employer is a new user of OP& F's online payment/reporting system and as a result of performing the new process, the employer missed the deadline and incurred a penalty.

(B) In order for the provisions of this rule to apply, the employer must be in "good standing." For purposes of this rule, "good standing" shall mean that the employer has paid all prior penalties in the past year in accordance within the governing statutory provisions so that OP& F did not need to take further action to collect such employer's compliance (i.e. the penalties were paid within the grace period once added to the employer's billing statement).

(C) In the event that any of the events under paragraph (A) of this rule apply and the employer is in good standing with OP& F, with the exception of the report or payment in question, OP& F shall apply the following reduction in penalties:

(1) If the employer files the proper report of contributions and properly pays the contributions within six months of OP& F's written notice of deficiency, then OP& F will reduce the statutory penalties by seventy-five per cent;

(2) If the employer files the proper report of contributions and properly pays the contributions within twelve months of OP& F's written notice of deficiency, then OP& F will reduce the statutory penalties by fifty per cent; and

(3) If the employer files the proper report of contributions and properly pays the contributions more than one year after OP& F's written notice of deficiency, then OP& F will reduce the statutory penalties by twenty-five per cent or such lesser amount established by the board of trustees based on the applicable facts and circumstances.

(D) This rule shall not adversely impact OP& F's remedies in the event an employer files a report and pays contributions to the wrong retirement system.

(E) For purposes of this rule, "proper report of contributions" shall mean the report of contributions required under section 742.32 of the Revised Code, as more fully outlined in rule 742-9-10 of the Administrative Code, and"properly pay the contributions" shall mean the payment of contributions due under section 742.32 of the Revised Code and consistent with the terms of rule 742-9-10 of the Administrative Code.

Five Year Review (FYR) Dates: 05/20/2015 and 05/20/2020
Promulgated Under: 111.15
Statutory Authority: 742.10
Rule Amplifies: 742.352, 742.353
Prior Effective Dates: 12/22/05 (Emer.), 3/20/2006, 06/24/2010