Fillable Printable De631R
Fillable Printable De631R
De631R
INTEREST ON REFUNDS
The Employment Development Department (EDD) follows
interest requirements set forth under Section 1181 of the
California Unemployment Insurance Code (CUIC) and
Section 19521 of the Revenue and Taxation Code (R&TC).
Interest is paid based on decisions of Administrative
Law Judges and the California Unemployment Insurance
Appeals Board. Interest may also be allowed under
Section 1181 of the CUIC if an employer overpaid
contributions because of reliance on an incorrect
EDD notice, provided the overpayment was not made
intentionally or by reason of negligence on the part of the
employer.
The interest rate is based on the average prime rate as
determined by the Board of Governors of the Federal
Reserve System. The following information is provided to
explain how EDD’s semiannual interest rate is determined.
Section 19521 of the R&TC provides that the
determination of the federal short-term rate as specifi ed
in Section 6621(b) of the Internal Revenue Code shall be
modifi ed to be determined semiannually as follows:
(A) The rate for January shall apply during the following
July through December, and
(B) The rate for July shall apply during the following
January through June.
The established interest rate applies to interest paid
under Section 1181 of the CUIC on refunds and credits
issued by EDD.
Section 1181 of the CUIC provides that if funds are
available for the payment of interest, interest shall be
allowed on amounts applied to contributions only from
the date of overpayment to the date of allowance of the
refund or credit.
Interest is not payable on that part of any payment that
was at one time applied to penalties and interest, even
though those amounts of penalties and interest are no
longer due.
To obtain interest rates for the past fi ve years, you may:
• Access EDD’s Web site at
www.edd.ca.gov/Payroll_Taxes/Interest_Rate.htm.
The interest rates shown are applicable for interest
payable to and by EDD.
• Call the Taxpayer Assistance Center at
(888) 745-3886.
The EDD is an equal opportunity employer/program.
Auxiliary aids and services are available upon request to
individuals with disabilities. Requests for services, aids,
and/or alternate formats need to be made by calling
(888) 745-3886 (voice) or TTY (800) 547-9565.
DE 631R Rev. 8 (10-10) (INTERNET) Page 1 of 1 CU
This information sheet is provided as a public service and is intended to provide nontechnical assistance. Every
attempt has been made to provide information that is consistent with the appropriate statutes, rules, and administrative
and court decisions. Any information that is inconsistent with the law, regulations, and administrative and court
decisions is not binding on either the Employment Development Department or the taxpayer. Any information provided
is not intended to be legal, accounting, tax, investment, or other professional advice.
