Gov. Nikki Haley has signed into law enabling legislation to give employers some relief on the new and much higher taxes levied on employers since Jan. 30.
The law does the following:
- Directs that the appropriations go toward state unemployment tax relief for businesses in tiers 2 through 20, which results in reductions up to 25% for 2011.
- State unemployment tax reductions are retroactive to January.
- Seasonal employees may be ineligible for unemployment benefits, resulting in a 3% reduction in state unemployment tax costs to businesses.
- New companies come in at tier 12 for the first 12 months, which is a savings of approximately $200 per employee per year for new companies.
- For 2011, companies on a payment plan will pay 0.25% penalty per month (previously set at 1% per month).
- Companies that have a positive state unemployment tax balance will be in no class higher than class 12 for 2011 only.
- Reduction of benefits for the newly unemployed to 20 weeks from 26 weeks, resulting in an 8% reduction in overall state unemployment tax costs to businesses.