Published Sept. 29, 2012
S.C. businesses should see a 12% reduction in their state unemployment tax bills compared with original rates set for 2012, the S.C. Department of Employment and Workforce said.
The reduction is the result of $77 million appropriation that legislature approved to lower the state unemployment tax rates, the agency said.
Rates were recalculated and impacted businesses will save about 12% for the year, the agency said.
The appropriation was made to help pay back outstanding federal loans and ease businesses’ transition to the new tax rate structure implemented in 2011.
The revised tax rate notices, which are being mailed to affected businesses, will inform employers of the new rate they should use when filing third and fourth quarter reports, due Oct. 31 and Jan. 31, 2013 respectively, the agency said.
The notices will also list applicable credits businesses will receive for payments made in the first and second quarters, which total more than $32 million, the agency said.
Federal law requires that any overages paid when tax rates were higher must remain as credits to be applied toward future taxes. Credits require no action on the part of the business, and can be used against any future unemployment tax liability and do not expire.
The 2013 tax rates are expected to be available in early November.
The state in August repaid $106.5 million to the federal government for the agency’s unemployment trust fund loan bringing the outstanding balance to approximately $675.7 million.
The state, which borrowed nearly $1 billion between December 2008 and spring 2011 to cover unemployment checks, is scheduled to repay the entire loan by the end of 2015.