§383-73  Penalty for delinquency; remission. A penalty of ten per cent or $10, whichever is greater, shall be added to theamount of all delinquent contributions, as hereafter defined, and anydelinquent contribution and penalty remaining unpaid fifteen days after thedate of delinquency shall bear interest from the date of delinquency at therate of two-thirds of one per cent for each month or fraction of a month untilpaid.  Any penalty and interest above referred to shall be added to thecontribution and shall be collected as though the same were a part of thecontribution.  For the purposes of this section, a contribution shall be deemeddelinquent:

(1)  Upon a nonpayment thereof on the date prescribedfor its payment, but only in case of failure to pay a contribution shown due bya return, or in case of failure to file a return, or in case of failure to paya contribution because of a false or fraudulent return; and

(2)  Upon nonpayment thereof within the time providedby paragraph (c) of section 383-70, in any other case.

Except in cases of fraud or wilful violation ofthis chapter or wilful refusal to make a return (but inclusion in a return of aclaim of nonliability for contributions shall not be deemed a refusal to make areturn), the director of labor and industrial relations may, in a case ofexcusable failure to file a return or pay a contribution within the timerequired by this chapter or in a case of uncollectibility of the whole amountdue, remit any amount of penalties or interest added to any delinquentcontribution.  In all such cases there shall be placed on file in thedirector's office a statement showing the name of the person receiving suchremission, the principal amount of the contribution, and the period involved.

Whenever an employer makes a partial payment ofa sum owed for delinquent contributions, penalties, and interest, the amountreceived by the director shall first be credited to interest, then topenalties, and then to principal. [L 1939, c 219, §7(f); am L 1941, c 304, §1,subs 24; RL 1945, §4259; am L 1951, c 123, §1; am L 1953, c 23, §1(4); RL 1955,§93-72; am L 1957, c 205, §1(b); HRS §383-73; gen ch 1985]