Fiscal Year Memo 2025-03: Late Penalty Interest Rate
The late penalty interest rate for July 1, 2024 – December 31, 2024, is 5.50% per annum (Daily Interest Rate = 0.0001503).
The formula for computation of late payment interest requested by a vendor is calculated as follows: [Invoice Amount] * [Daily Interest Rate] * [# days from Payment Due Date to Scheduled Payment Date]. Payments are made using the appropriate object code for late penalty interest (in the same object class as the original payment) in the Expenditure Classification Handbook.