Penalties for failure to make timely deposits are determined by?

• A. A flat rate of 10% for late deposits
• B. 5% of the undeposited amount with a maximum of $100,000
• C. 15% of the undeposited amount with a maximum of $100,000
• D. A four-tiered penalty structure based on the number of days the deposit is late

Answer: (D)

Penalties for late deposits are based on how late the remittance arrives, using a four-tiered structure that assigns a penalty rate according to the number of days the deposit is past due. This approach escalates the charge as lateness increases, rather than applying a flat fee or a fixed percentage of the undeposited amount. The idea is to reward timeliness and deter delays by raising the penalty in clearly defined lateness windows, with higher tiers applying for longer delays (and often with further adjustments for repeated late deposits). The other options don’t fit because they imply a flat rate, a set percentage of the amount late, or a single maximum, none of which reflect the tiered, day-based system used here.