For periods January 1, 1986 through December 31, 2010, the departmental administrative contingency assessment is assessed at six one-hundredths of one percent (0.0006) upon all taxable wages as defined in Section 41-27-380. All employers are subject to this assessment unless classified as reimbursable employers or have been assigned a 5.4 percent contribution rate.

For periods on and after January 1, 2011, the departmental administrative contingency assessment is assessed at six one-hundredths of one percent (0.0006) upon all taxable wages as defined in Section 41-27-380. All employers are subject to this assessment unless classified as reimbursable employers.

 

Automatically liable state agency accounts are considered a "Reimbursable Employer."

 

Link to Contribution Schedule for CY2011 and to Contribution Rate Tables for CY2004 - CY2010

 

These entities don’t have to meet weeks and/or money provisions. They’re liable when having at least one employee and have the option to elect to become "Reimbursable" by completing a Form UCE-155, “Election to Become Reimbursable.”

Employer Liable for Payments In Lieu of Contributions

Read the legal statutes

 

Employers Liable for Contributions CY2011
A new employer liable for contributions for the first time will have an assigned base rate of rate class 12, plus applicable surcharges, which are dependent on the balance of outstanding Trust Fund Loans and interest payments. (Note: Current state law requires that new employers pay at rate class 13; there is legislation in the South Carolina General Assembly pending that will reduce this to 12 for all new employers except for those in temporary staffing industry; any changes that result from the passage of this bill will be mailed to the affected employers and additional time will be granted to pay first quarter taxes.) This rate remains effective until the employer is eligible for an experience rate computation. His tax class assignment depends on several factors:

• His most recent 7 years of annual taxable payroll
• Benefit charges made against his account for unemployment insurance benefits paid to former or current employees during the past 7 years
• Required income for the upcoming calendar year as defined in 41-31-45

Generally, an employer’s base contribution rate of tax class 12, plus applicable surcharges, remains until at least 12 consecutive months of coverage elapse. As of July 1 of the year and 12 consecutive months’ liability is accomplished, we compute an experience rate for the next calendar year.

The books of the Department of Employment and Workforce are closed as of June 30 each year for the purpose of computing experience rates, which are applicable for the following calendar year.

Tax rates are established as of July 1 each year to be effective the following January 1 in accordance with the benefit-ratio system (the ratio of the benefit charges to the annual taxable payroll). To get the benefit ratio, we divide all benefits charged to an employer’s account for the past 7 years by the sum of the taxable wages over the same time period. The resulting figure is the employer’s benefit ratio.

Employers Liable for Contributions for CY2010 and Prior
A new employer liable for contributions the first time will have an assigned base rate of 2.64 percent, plus an applicable surcharge dependent on the Trust Fund Reserve. This rate remains effective until the employer is eligible for an experience rate computation where his base contribution rate can range from 0.54 percent to a maximum 6.1 percent, depending on four factors:

• The most recent annual taxable payroll
  
• Contributions paid
  
• Benefit charges made against his account for unemployment insurance benefits paid to former or current employees during past years
  
• The statewide reserve ratio. 
  

Generally, an employer's base contribution rate remains 2.64 percent plus applicable surcharges until at least 12 consecutive months of coverage elapse. As of July 1 of the year and 12 consecutive months’ liability are accomplished, we compute the next calendar year’s experience rate.

DEW’s books close as of June 30 each year for the purpose of computing contribution experience rates applicable to the following calendar year. Contributions for the quarter ending June 30 must be received by July 31 to be included in the rate computation. Contributions received after July 31 and unemployment insurance benefits paid after June 30 aren’t considered until the next annual rate computation date.

Contribution rates are established as of July 1 each year to be effective the following January 1 in accordance with the reserve-ratio system (the ratio the reserve balance bears to the most recent annual payroll). To get the reserve balance, we subtract all benefits charged to an employer’s account from the total contributions paid to the fund. The result is the employer’s reserve.

 

Non-profits meeting the following requirements are liable:

• The organization employed four or more individuals for 20 different weeks within the current or preceding calendar year.

Non-profit organizations must provide DEW an IRS Code 501-C-3 Exempt Letter. Without that letter, the organization becomes a "regular" employer. The organization can elect to become Reimbursable by completing Form UCE-155, “Election to Become Reimbursable.”

Non-profit organizations, state and local government entities may elect to reimburse DEW in lieu of contributions.

 

Reimbursable Employers have two reimbursement options:

1. Payments of the full amount of regular benefits plus one-half of the amount of the extended benefits paid during such quarter;
OR
2. A 2 percent payment of the quarterly taxable payroll with an adjustment payment as required at the calendar year’s end.

When a reimbursable employer selects option (1) above, the reimbursable employer must assure DEW it can repay as follows:

Surety bond, money deposit, or securities equaling total wages of one year X tax rate for class 20
OR
A financial statement demonstrating $2 million in assets

The surety bond must cover two years as per law and be renewed with DEW’s approval.

 

We charge 1 percent interest per month, or any part thereof, on delinquent contributions. Contributions that accrued prior to the establishment of an employer’s liability bear 0.5 percent interest per month, or fraction thereof, to the date we established liability. Then they bear 1 percent interest per month thereafter until contributions are paid.

 

You can submit remittances for the total amount due with the quarterly contribution report or pay separately using the Automated Clearinghouse (ACH) Credit. Questions? Contact our Contribution Section at 803.737.3080.

 

If you fail to submit contribution or wage reports within the required time, you’ll receive a delinquency notice. If you then fail to file reports within 15 days from the notice’s postmark as the Notice of Delinquency requests, DEW will assess a 10 percent penalty of the contributions due, but no less than $25.00 nor more than $1,000.00 in addition to contributions due.

 

Send us a written request for an extension on or before a payment comes due. We may, if you show good cause, grant an extension for making payment. However, the extension will bear interest at 1 percent per month or fraction thereof.

 

If you paid contributions or interest in error, you can file an application for adjustment or refund. We’ll make corrections without interest, by means of a Statement of Account. When preparing your next contribution report, you can deduct the credit due, as shown on the Statement of Account, for quarterly contributions otherwise payable. If the amount paid in error is too large to be adjusted in a reasonable time by Statement of Account, you can request a refund.

You must submit an application for reimbursement within four years from the date the erroneous payment became due.

 

An employer not liable under DEW law can elect, with the exception of agricultural and domestic employers, to become liable. You must complete Form UCE-154, “Election to Become an Employer.” The employer is liable from the beginning date of employment in the year the election request is completed and approved.