The penalty will be calculated as follows: The payment due date is 45 calendar days after receipt of a properly submitted, undisputed invoice, unless otherwise Step 1: specified in the contract or grant. Determine the Payment Due Date In the case of refunds, the payment due date is 45 calendar days after notification of the refund to the payee or other payments due to individuals Step 2: The amount of the invoice less taxes or the or “refund Amount Subject to other payment due” amount. Penalty Multiply the amount subject to penalty (as determined in Step 3: Step 2) by the applicable penalty rate (based on the Penalty Amount Per Day payment due date) as specified in the BL. Step 4: Calculate the number of calendar days between the Number of Days payment due date (as determined in Step 1) and the date Penalized: payment is issued. Multiply the penalty amount per day (as determined in Step 3) by the number of days penalized (as determined in Step 4). The result is late payment penalty amount due the Step 5: claimant; except that penalty amounts of $10 or less Late Payment Penalty not be paid to small businesses, nonprofit and refunds or Amount other payments due to individuals. For all other businesses, penalty amounts of $100 or less shall not be paid (Continued) (Continued) PENALTY CALCULATION 8474.3 (Cont. 1) (Revised 6/2015) See Illustration 1 below for samples of late payment penalty calculations. When a late payment penalty is incurred, a completed Penalty Calculation Worksheet, STD. must be attached to the related invoice submitted to the Controller. The latest Penalty Calculation form, STD. 208, can be found on the DGS website at .
The penalty will be calculated as follows: Step 1: Determine the Payment Due Date The payment due date is 45 calendar days after receipt of a properly submitted, undisputed invoice, unless otherwise specified in the contract or grant. In the case of refunds, the payment due date is 45 calendar days after notification of the refund to the payee or other payments due to individuals Step 2: Amount Subject to Penalty The amount of the invoice less taxes or the “refund or other payment due” amount. Step 3: Penalty Amount Per Day Multiply the amount subject to penalty (as determined in Step 2) by the applicable penalty rate (based on the payment due date) as specified in the BL. Step 4: Number of Days Penalized: Calculate the number of calendar days between the payment due date (as determined in Step 1) and the date payment is issued. Step 5: Late Payment Penalty Amount Multiply the penalty amount per day (as determined in Step 3) by the number of days penalized (as determined in Step 4). The result is late payment penalty amount due the claimant; except that penalty amounts of $10 or less not be paid to small businesses, nonprofit and refunds or other payments due to individuals. For all other businesses, penalty amounts of $100 or less shall not be paid (Continued) (Continued) PENALTY CALCULATION 8474.3 (Cont. 1) (Revised 6/2015) See Illustration 1 below for samples of late payment penalty calculations. When a late payment penalty is incurred, a completed Penalty Calculation Worksheet, STD. must be attached to the related invoice submitted to the Controller. The latest Penalty Calculation form, STD. 208, can be found on the DGS website at .
Chap8400(Notebook).docx