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Workforce agency to cut unemployment insurance tax 9%

Source: GSA Business

November 4, 2014

Unemployment insurance tax rates for 2015 will drop approximately 9%, the S.C. Department of Employment and Workforce said.

Overall, in South Carolina the unemployment insurance tax rates will be 20% to 25% lower for 2015 as compared with the rates charged in 2011 taxes, when the agency adopted a new structure for computing rates.

Rate reductions are the result of an improving state economy with more than 2 million South Carolinians holding down jobs, the agency said. In addition, the agency has lowered benefit payouts and legislative and employment department policy changes that restrict benefits to those who lost their jobs through no fault of their own.

“The economy continues to improve, South Carolinians continue to find work and tax rates continue to decline,” said Cheryl Stanton, executive director of the workforce department. “This is truly a testament to the efforts of our state’s business community and workforce development. Because of its hard work, the UI trust fund is on a path to solvency in 2015.”

Businesses should receive their individual tax rate notices during the first week of November, six months before their first payment is required, the department said. Wage and Contribution reports are due by April 30, and these tax rates apply to the first $14,000 earned by each employee.

To date, South Carolina has repaid approximately $700 million of the $977 million borrowed from the federal government during the Great Recession to cover unemployment checks. The outstanding balance on the loan is $270 million, and the state is still scheduled to repay the loan in full by the end of 2015.

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