Payments of penalties should not be charged to contract or grant funds or to State General Funds. Questions regarding the timing and payment of penalties should be referred to the UCOP Payroll Coordination and Tax Services unit.

Penalties paid to an employee are reportable as income on a Form 1099. Such payments, however, are not considered wages for Federal and State income and employment tax withholding. These payments are not covered compensation for purposes of UCRP.

Yes. The daily penalties include weekends and holidays for up to a maximum of 30 days pay.

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