Underpayment

(redirected from underpay)
Also found in: Dictionary, Thesaurus.
Related to underpay: overpay, underpayment

Underpayment

The act of paying an amount under the full amount. For example, if one's mortgage payment is $600 per month but one only pays $400 for July, one has underpaid the mortgage. Underpayment is not sustainable and may lead to serious financial difficulties. However, paying what one can afford when one cannot pay the full amount may be easier for both the obligor and the obligee.
References in periodicals archive ?
Companies that continue to underpay for the next four years will have their rate increased to 10.
The fines could run into thousands of pounds, especially if companies underpay large numbers of workers.
AHCA has many priority concerns, including inadequate inflation adjustments, unjust Medicare therapy caps that unfairly target patients in nursing facilities, a dysfunctional Medicaid program that underpays for care provided in nursing facilities, and a legal system requiring real federal and state tort reforms to help roll back exorbitant liability insurance rates that threaten patient access to quality care.
An individual who underpays estimated tax is subject to an addition to tax trader Sec.