What is the maximum per 30-day period for the late filing penalty?

• A. 2% of incurred liabilities
• B. A fixed $1500
• C. 5% of incurred liabilities in the last report or $1500, whichever is less
• D. $1000 per 30 days

Answer: (C)

Late filing penalties for California Self‑Insurance Plans are calculated on the size of the plan’s liabilities shown in the most recent report, with a cap to keep the penalty from becoming excessive. For each 30-day period of lateness, you take 5% of the incurred liabilities in the last report, but you cannot exceed $1500 for that 30-day period. So the maximum per 30 days is the lesser of 5% of those incurred liabilities or $1500.

For example:

• If the last report shows $20,000 in incurred liabilities, 5% is $1,000, which is under the cap, so the maximum per 30 days is $1,000.

• If the last report shows $40,000 in incurred liabilities, 5% is $2,000, but the cap brings it down to $1,500 per 30 days.

• If the last report shows $5,000 in incurred liabilities, 5% is $250, which is well under the cap, so the maximum per 30 days is $250.

If lateness continues, each 30-day period follows the same rule.