LATE PAYMENT PENALTY

Per California Education Code 45048, the daily interest rate for late salary payments is based on the adjusted annual interest rate set by the Franchise Tax Board under California Revenue and Taxation Code Section 19521. The rate is not static and is subject to change. 

Current and recent rates

• For July 1, 2024, to June 30, 2025, the adjusted annual interest rate is 8%.

• For January 1, 2024, to June 30, 2024, the rate was 7%.

• The rate is reviewed and updated semi-annually. The January rate applies for July through December, and the July rate applies for January through June. 

Calculating the daily interest

To calculate the daily interest, the annual rate must be divided by the number of days in the year. The formula is:

(Unpaid salary amount) x (Annual interest rate / 365) = Daily interest owed.

For example, using the 8% annual rate from the first half of 2025:

• An unpaid salary of $3,000 would accrue approximately $0.66 in daily interest ($3,000 x 0.08 / 365). 

The Los Angeles County Office of Education has published a bulletin confirming these rates and indicating that a county interest factor table is used to facilitate calculations. 

IUSD Financial Reports

ITA DUES 

CTA DUES CALCULATION