Under LC 4622, if not paid within 60 days, the amount payable should be increased by what percent together with interest at what percent?

Under LC 4622, if not paid within 60 days, the amount payable should be increased by what percent together with interest at what percent?

• A. 5 percent; 6 percent
• B. 10 percent; 7 percent
• C. 15 percent; 8 percent
• D. 20 percent; 9 percent

Answer: (B)

The rule being tested is the combination of a late-payment penalty and interest on a delinquent amount. Under LC 4622, if the payable amount is not paid within the 60-day period, a 10% penalty is added to the amount due, and interest accrues on the overdue balance at 7% per year. So the total becomes the original amount plus a 10% penalty, with interest (at 7% annually) continuing to accumulate on the unpaid balance. This is why the correct option specifies a 10% penalty and 7% interest. The other percentages do not align with what the statute prescribes.

The rule being tested is the combination of a late-payment penalty and interest on a delinquent amount. Under LC 4622, if the payable amount is not paid within the 60-day period, a 10% penalty is added to the amount due, and interest accrues on the overdue balance at 7% per year. So the total becomes the original amount plus a 10% penalty, with interest (at 7% annually) continuing to accumulate on the unpaid balance. This is why the correct option specifies a 10% penalty and 7% interest. The other percentages do not align with what the statute prescribes.