Underpayment

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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 ?
At the same time, some underpayment may not be captured in the data - for example, deductions to pay through salary sacrifice is not recorded in the survey, and knowingly noncompliant employers are also unlikely to admit this in the survey.
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points.
Alternatively, the partnership representative may elect to push-out the tax underpayment to the partners/members.
Universal Credit has the highest estimated level of overpayments, at 7.2%, while Personal Independence Payment has the biggest amount of underpayments at 3.7%.
Partnerships that have an imputed underpayment arising from such audits have the option to pay assessment at the partnership level or push the assessment out their partners for payment.
The proposed rules explain that the imputed underpayment is calculated by multiplying the total netted partnership adjustment by the highest rate of federal income tax in effect for the reviewed year under Sec.
Partner indemnification of partnership payments: Should the partnership agreement require the partners of the reviewed year to reimburse the partnership for imputed underpayments made by the partnership in the adjustment year when the partners for the reviewed year and the adjustment year are not the same?
After the audit program's administrative costs, underpayments paid to providers, and appeal reversals, the Medicare Recovery Audit Program returned approximately $1.6 billion to the Medicare Trust Funds in 2014.
One member of staff told BBC Radio 4's The Report: "For each underpayment there are thousands of pounds owed.
States are rated both on underpayment and overpayment of benefit dollars to eligible households.
To address this challenge, we initially employed a manual process for tracking underpayments where we ran queries from our practice management system and compared payments received against contract terms.
* Adjust the interest rate paid to corporations on overpayments made in lieu of amnesty to the rate of interest paid on underpayments.