In a nod to employers, Governor Nikki Haley announced in Greenville today that she will propose to the legislature that applicants for unemployment benefits must first enroll in job training before they will be eligible to apply for unemployment benefits.
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.
The S.C. House of Representatives agreed with S.C. Senate amendments to a bill that could reduce unemployment taxes paid by employers by as much as 18 percent. The legislation must still be approved by Governor Nikki Haley. In addition, part of the tax reduction is contingent on an appropriation in the Senate’s budget bill, which is now be reviewed by the S.C. House.
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Last month employers found out the amount of money they will be paying in unemployment taxes in 2011. The new rates are based on usage of the system, and employers whose employment practices have resulted in unemployment benefit payments to former employees generally saw a large increase in their unemployment insurance rates for 2011.
In addition to increasing the weighting of taxes to employers with a history of former employees using the system, the law also changed in these two significant ways:
- The amount of wages on which the tax is based increased from $the first 7,000 of each of your employee’s wages to the first $10,000 of each of your employee’s wages
- The period of time in which the agency calculates your business’s history was increased from five years to seven years
The South Carolina Department of Employment and Workforce laws that govern the rate assignment of an employer into their individual tax class do not have an appeal process. The taxable wage and benefit charge experience (historical data) of an employer record which may include the data of an acquired, merger, consolidated, joint, and/or related employer account are printed only for the purpose of informing you of the data used in the rate calculation.
You may submit a written request within 30 days from the date of the notice for a review of the information should there be any differences noted between the notice and the employer record. You must provide documentation with the request. Your request should be sent to:
If you have experienced a dramatic increase in your unemployment insurance rates, consider filing an appeal. While the appeal may not have an immediate impact on your rates, it will demonstrate to the state agency that administers the unemployment insurance program the negative effect these rate increases have had on the home building industry.