Search Results for keywords:"business payments"

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Search Results: keywords:"business payments"

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  • 2021-01681 — Prompt Payment Interest Rate; Contract Disputes Act
    Type:Notice
    Citation:86 FR 7457
    Reading Time:about a minute or two

    The Fiscal Service, part of the Treasury Department, has issued a notice about the interest rate applicable under the Prompt Payment Act and the Contract Disputes Act. For the period from January 1, 2021, to June 30, 2021, the interest rate is set at 7/8 percent per annum. This rate is used to calculate interest penalties on late payments by federal agencies to businesses. The notice emphasizes that these penalties must be paid regardless of whether the business requests them.

    Simple Explanation

    The Fiscal Service from the Treasury Department has announced that from January 1 to June 30, 2021, if the government pays a bill late, they have to give a little extra money, called interest, which is set at about 0.875% per year, to the business they owe, even if the business doesn’t ask for it.

  • 2025-02986 — Prompt Payment Interest Rate; Contract Disputes Act
    Type:Notice
    Citation:90 FR 10678
    Reading Time:about a minute or two

    The Bureau of the Fiscal Service, Treasury Department has announced the prompt payment interest rate for the period from January 1, 2025, to June 30, 2025. The interest rate is set at 4 5/8 percent per year. This rate is used to calculate interest penalties owed by government agencies to businesses when they fail to pay for goods or services on time. The interest is calculated from the day after the payment was due until the payment is made.

    Simple Explanation

    The government says that if they are late paying for something they bought, they have to give a little extra money—a tip of 4.625% a year—to say sorry for being late. It's like when someone is late for a playdate and brings a cookie to make up for it!