What the law below means: We record each employer’s contributions and credit his account accordingly. No employee or employer can claim these funds as his. With the exception of reimbursable employers, the benefits paid eligible workers are charged to the most recent employer’s account that paid the worker wages equal to eight times his weekly benefit. If benefits paid are based on wages from one or more employers liable for payments in lieu of contributions (reimbursable employers) and wages paid by one or more liable employers, the most recent employer’s benefit charges will be prorated among the contributory and reimbursable employers if a portion of the base period wages used to establish an unemployment claim included wages earned from a reimbursable employer.

Section 41-31-20 of the South Carolina Employment Security Law provides:
"The department shall maintain a separate account for each employer and shall credit the account of each with all the contributions paid on his behalf, but nothing in this Title shall be considered to grant any employer or individual in his service prior claims or rights to the amounts paid by him into the fund either on his behalf or on behalf of such individuals. Benefits paid to an eligible individual shall be charged, in the amounts provided in the Title, against the accounts of his most recent employer. No employer shall be deemed as the most recent employer for the purpose of this section unless the eligible person to whom benefits are paid shall have earned wages in the employ of the employer equal to at least eight times the weekly benefit amount of the eligible claimant. The Department shall by general rules prescribe the manner in which benefits shall be charged against the accounts of several employers for whom an individual performed employment at the same time. Provided, however, in the event benefits paid to an individual are based on wages paid by one or more employers who were liable for payments in lieu of contributions and on wages paid by one or more employers who were liable for payment of contributions, the amount in benefits which shall be charged to the account of the most recent employer shall not exceed the amount of benefits which would have been paid solely by reason of the base period wages paid by employers who were liable for payment of contributions."

 

Monetary Eligibility
Effective January 1, 2011, to be monetarily eligible, a claimant must:

• Have at least $1,092 in covered employment during the base period’s highest quarter
• Have earned at least $4,455 from covered employment during the base period
• Have total base period wages that equal or exceed 1.5 times the high quarter wages’ total.

Non-Monetary Eligibility
Individuals filing a weekly claim for benefits for any week must meet these requirements.

• Be unemployed or partially unemployed and be determined eligible for benefits with respect to separation from the bona fide employer. Any earnings for a claimed week must be less than the worker’s weekly benefit amount. Earnings will be deducted from unemployment benefits.
  
• Be separated through no fault of the worker from the bona fide employer.

OR

• He must have served any disqualification or requalified from any disqualification.
  
• Be able to work.
  
• Be available for full-time work and willing to accept suitable work if offered.
  
• Be actively seeking full-time work each week or part-time work if the majority of the base period work was in part-time employment.
  
• Report and register with the local Employment Office.

A worker whose employer is filing a weekly claim for him is considered job attached and is not required to make a work search or register with DEW.

Suspect fraud? Fraud Detection
Report Unemployment Insurance Fraud
We audit claims each quarter to detect fraud and abuse by crossmatching benefit payments with employers’ wages reports. When a match occurs, we send Form UCB-179 to the employer to verify earnings. The information is requested on the basis of weekly benefits paid and the claimant’s weekly earnings.

 

Administrative Tax Appeals
At the request of an employing unit or employer, the Appeals Tribunal shall review any administrative determination with respect to the status, liability, and rate of contributions applicable thereto and shall issue an administrative ruling affirming, modifying, or reversing the determination of the status unit supervisor. The determination of the Status Unit Supervisor becomes final within 30 days from the date of the document.

File appeals in person at any local agency office, by fax at 803.737.0287, or in writing to:

Appeals Tribunal
P. O. Box 995
Columbia, SC 29202

The Appeals Tribunal shall conduct this hearing in the same manner as prescribed by the Administrative Procedures Act. The administrative hearing officer acts as the impartial presiding officer in the case and judge of all facts presented. The agency typically has a field deputy to present their case. Although the field deputy is an agency representative, the administrative hearing officer has no vested interest in the outcome of the case. The field deputy is in effect, “the prosecuting entity” for the agency.

Corporations must be represented by an attorney licensed in the State of South Carolina. Other entities may represent themselves but the administrative hearing officer will ensure the facts of the case are fully developed. The manner of the hearing is conducted in the same fashion outlined for regular benefit cases. It is important to understand this is your only opportunity to present evidence for consideration. The parties must ensure witnesses, documentary evidence and other relevant information is presented on the record before the Tribunal.

A decision will be issued by the Appeals Tribunal as soon as possible to the address of record of the interested parties. Postponements are considered on a case-by-case basis. The only basis for such a continuance of the case would be for an emergency.

Appeals to Court
The law provides for appeals from the decision of the Appellate Panel to the courts. South Carolina Code §41-35-750 governs such appeals. The Administrative Law Court considers cases based on the “substantial evidence” rule. Hamm v. Central States Health & Life Co., 292 S.C. 408, 410, 357 S.E.2d 5, 6 (1987); Lark v. Bi-Lo, Inc., 276 S.C. 130, 136, 276 S.E.2d 304, 307 (1981). “Substantial evidence” is not a mere scintilla of evidence, nor the evidence viewed blindly from one side of the case, but is evidence which, considering the record as a whole, would allow reasonable minds to reach the conclusion the administrative agency reached.

 

DEW’s policy on cafeteria plans generally follows Federal Unemployment Tax Act (FUTA) guidelines. In accordance with that policy, most qualified cafeteria plan payments, except for deferrals to a qualified cash or deferred payment arrangement (IRS Section 401(k) plans), are excluded from wages in calculating state UI taxes.

Note that Section 401(k) of the Internal Revenue Code is binding only for income tax purposes and amounts placed in this type of cash or deferred compensation arrangement are considered wages, regardless of whether or not the arrangement is part of a cafeteria plan.

Questions regarding taxability of cafeteria plan benefits? Contact the IRS.

 

Non-Profit Organizations, State Hospitals, & Higher Education Institutions
Amended SC law provides coverage of employing units in the following employment:

Service performed after December 31, 1971, by an individual in the employ of this State or any of its instrumentalities (or in the employ of this State and one or more other States or their instrumentalities) for a hospital or institution of higher education located in this State, or a political subdivision of this State which has elected to cover such services; provided that such service is excluded from "employment" as defined in the Federal Unemployment Tax Act solely by reason of Section 3306 (c) (7) of that Act and is not excluded from "employment" under Section 41-27-230 (4) of this title.

Service performed after December 31, 1977, in the employ of this State or any political subdivision thereof, or any instrumentality of any one or more of the foregoing which is wholly owned by this State and one or more other states or political subdivisions, or any service performed in the employ of any instrumentality of this State or any political subdivisions thereof, and one or more other states or political subdivisions; provided that such service is excluded from "employment" as defined in the Federal Unemployment Tax Act by Section 3306 (c) (7) of that Act and is not excluded from "employment" under Section 41-27-230 (4) of this title.

Service performed after December 31, 1971, by an individual in the employ of a religious, charitable, educational or other organization but only if the following conditions are met:

The service is excluded from "employment" as defined in the Federal Unemployment Tax Act solely by reason of Section 3306 (c) (8) of that act; and

The organization had four or more individuals in employment in each of twenty different weeks, whether or not such weeks were consecutive, within either the current or preceding calendar year, regardless of whether they were employed at the same moment of time.

Employing units covered under this special coverage may elect, in lieu of payment of contributions, to pay to the Department for the unemployment fund, an amount equal to the amount of benefits.

 

Any person or legal entity acquiring an employer’s business that continues operating the acquired business has his contribution rate determined by his and the previous owner’s employment experience. We determine the rate in accordance with experience rating applicable to each subsequent owner.

 

The law also provides that the successor to a distinct, severable, identifiable, and segregable part of a business can inherit the predecessor’s portion of the employment benefit experience record attributable solely to the business portion acquired, provided both the predecessor and successor agree to such action.

In case of total or partial succession by purchase, merger, consolidation, devise, inheritance, or other means, the employer must notify the Department within 30 days following the quarter’s end during which such succession occurred so proper steps can be taken to adjust his status as a liable employer.

 

You may submit remittances for the total amount due with the quarterly contribution report or pay separately using the Credit Automated Clearinghouse (ACH). For questions involving either method, please contact our Contribution Section at 803.737.3080.

You may also submit an electronic payment when you file your quarterly report online using the South Carolina Business One Stop application that may be accessed using the following link: https://www.scbos.sc.gov/.

Submitting Payment with Contribution Report
Remittances submitted with the quarterly contribution report should be made payable to the South Carolina Department of Employment and Workforce. Forward all reports and remittances to:

South Carolina Department of Employment and Workforce
Attn: Contribution Section
P.O. Box 7103
Columbia, SC 29202

To become a more efficient agency, we are adopting a paperless process. Eventually, we will no longer accept paper remittances, i.e. check or money order. Employers will be updated as we transition away from paper processes.

 

Paying your remittance using the Credit Automated Clearinghouse (ACH) method involves transferring funds from your bank account to the DEW bank account. You must have appropriate banking software to use this method. Depending on the financial institution, this method may require a fee. If you choose this method, complete an Electronic Funds Transfer Agreement and follow its instructions. We use the CCD+ format for ACH funds transfer.

To initiate a funds transfer, you will need the following information.

Receiving Depository Financial Installation (RDFI) – National Bank of South Carolina (NBSC)
RDFI Transit Routing Numbers – 053200666
Receiver Account Number – 4563931801

Fax the completed Electronic Funds Transfer Agreement (ACH Agreement) to 803.737.5679 or mail to the address below. Mail quarterly contribution and wage reports here:

South Carolina Department of Employment and Workforce
Attn: Contribution Section
P. O. Box 7103
Columbia, SC 29202

Addenda Record Format for DEW Contribution Payments
You must use the following addenda record format (record type 7) to submit your ACH electronic funds transfer. Failure to use this format can cause payment processing to be later than the due date.

FIELD NAME  FIELD LENGTH  ENTRY
Identifies this payment as the standard UI Tax payment format 3 TXP

Field Separator 1  *

Employer Account Number 7 0XXXXXX
(This field is the agency assigned Employer Account Number. The first position of this
number must be a zero. The following 6 positions is your 6-digit account number.
Account number 099999 should be entered as 0099999.)
Field Separator 1 *

Quarterly Period End Date 3  YYQ
(This field is the year and quarter to which the payment is to be applied.)
Field Separator 1 *

Payment Amount  10 $$$$$$$$cc
(This field must be entered on the addendum record with leading zeros. No special characters (i.e., $) are allowed. $20,000.00 should be entered as 0002000000)
Field Separator  1 *

Federal ID Number 9 XXXXXXXXX
(This field is the Federal Employer Identification Number (FEIN).
No special characters are allowed. 57-9999999 should be entered
as 579999999.)

Example of an addendum record: TXP*0099999*091*0002000000*579999999

 

Nonprofit organization liable for benefits payments in lieu of contributions that don’t possess title to real property and improvements valued over $2 million may have to post a surety bond, money deposit, or other securities with DEW. This action guarantees the nonprofit entity can cover benefit charges that accrue on their employer account.

In particular, a nonprofit organization or group of organizations with less than $2 million in title to real property and improvements assets that elects to pay DEW on a reimbursable basis in lieu of contributions may be required to meet the following terms before being approved as a reimbursable employer.

• Post a money deposit
  
• Furnish an indemnity bond with a surety company authorized to do business with the State of South Carolina; or
  
• In lieu of an indemnity bond, furnish U.S. Government bonds, obligations of the U.S. Government or obligations fully guaranteed both as to principal and interest by the U.S. Government; obligations of the Federal Intermediate Credit banks, Federal Home Loan banks, Federal National Mortgage Associations and banks for cooperatives and Federal Land banks, obligations of the State of South Carolina or any of its political subdivisions.

The amount of the surety bond, money deposit, securities, or other security must be the tax rate for class 20 multiplied by the total wages a nonprofit organization or group of organizations pays. Total wages paid means wages as Section 41-27-380 defines for the four calendar quarters immediately preceding the election’s effective date, the renewal date in the case of a bond, or the biennial anniversary of the election in the case of a money deposit, whichever date is most recent and applicable. If the nonprofit organization did not pay wages in each of such four calendar quarters, DEW will determine the surety bond, cash deposit, securities, or other security amount.

Bonds deposited must be in force no less than two calendar years and will be renewed with DEW’s approval when it prescribes but not less frequently than two-year intervals as long as the organization makes payments in lieu of contributions. DEW can require adjustments in a previously filed bond. If the bond is to be increased, the organization must file an adjusted bond within 30 days of the date the required adjustment notice was mailed or otherwise delivered. Failure by any bond-covered organization to pay the full payments in lieu of contributions when due, together with applicable interest and penalties provided for in Section 41-31-630, 1976 as amended, shall render the surety liable on the bond.

DEW will keep any money deposit in an escrow account until liability under the election terminates. Then it will return the money to the organization, less deductions, as provided. The department can deduct funds to satisfy any due and unpaid payments in lieu of contributions as well as applicable interest and penalties described in Section 41-31-630, 1976, as amended. DEW will require the organization within 15 days following any deduction from a money deposit to put in enough money to return the organization’s deposit to its prior level. The department can, at any time, review the deposit’s adequacy. If it determines an adjustment is necessary, it will require the organization to deposit additional fund within 15 days of written notice or return to the organization a portion of the deposit it no longer considers necessary.

If any nonprofit organization fails to file a bond or make a deposit or fails to file an increased amount or increase or make a previously made deposit whole, DEW can terminate the organization’s election to make payments in lieu of contributions. This termination will continue for not less than two calendar years beginning the quarter in which such termination becomes effective, provided, that DEW can extend for good cause the applicable filing, deposit or adjustment period by not more than 30 days.