The law stated that if an employer fails to report and pay any amount of contribution to Social Security system, the employer is liable for a civil penalty of up to 100 percent of the amount of any contributions withheld or pay $250, whichever is greater.
The Social Security system also, under current law, charges 12 percent of currently unpaid penalties and contributions owed to it by businesses and individual employers.Two amendments were proposed in the measure, they were The House of Delegates, through this legislation, proposes two amendments to the Social Security system. The first is to lessen the 100 percent requirement of civil penalties to only one percent 1 percent or $50, whichever is greater. The second proposed amendment is to decrease the penalty interests on all currently unpaid penalties and contributions owed to Social Security system which now stands at twelve percent 12 percent to only one percent 1 percent.
