Liable employers are required to establish an unemployment tax account with DEW.

Your business is liable for quarterly UI tax contributions if it meets any one of the following criteria.

• Pays $1,500 or more in wages in any calendar quarter or has at least one employee during any 20 weeks in a calendar year.
• Acquires all or part of a business that was an employer subject to UI taxes at the time of the acquisition.
• Is liable under the Federal Unemployment Tax Act (FUTA) and has employees in South Carolina.
• Elects to become a liable employer.
• Pays cash wages of $1,000 or more in any calendar quarter for domestic services.
• Pays $20,000 or more to individuals employed in agricultural labor during any calendar quarter. 
• Employs 10 or more individuals in agricultural labor for a day in any 20 weeks in a calendar year.

Exceptions

In particular situations employers may not be liable for UI taxes for certain individuals. For a complete list of covered and exempt services, please refer to the South Carolina Code of Laws, sections 41-27-210, 41-27-220, 41-27-230, 41-27-235, 41-27-260.

Below are just two examples of situations where employers may not be liable for UI taxes.

Independent Contractors
Businesses that employ independent contractors are not liable for UI tax contributions on those individuals. The department decides whether a worker’s employment status is that of an employee or an independent contractor.  Although a contract between parties is considered, the fact that it states the relationship as an independent contractor does not bind the department in its determination.

Multi-state workers
When an employee works in South Carolina and another state, the department applies the following test to determine employment reportable to DEW. The tests are applied in the following order. 

1. Localization
   An employee’s services are in employment and "localized" in a state if he performs all services in the state or performs a majority of his services in that state with incidental services performed outside it.
2. Base of Operations
   If test one does not apply in any state, an employee’s services are in employment in a state if he performs some of his services and his base of operations is in that state as well. Base of operations is defined as a place of more or less permanent nature where the employee starts work and where he customarily returns to perform his contracted work.
3. Place of Direction and Control
   If tests one and two do not apply in any state, an employee’s services are in employment in a state if some of his services are performed there and his employer exercises general direction and control over him from that same state.
4. Residence of Employee
   If tests one, two and three do not apply in any state, an employee’s services are in employment in a state where he performs some of his services, and he lives there as well.

For specific questions related to your business, call the Employer Status Section at 803.737.3075. 

Voluntary Election

An employer not liable for UI taxes can elect to become liable. Complete the Election to Become an Employer Form (UCE-154) and submit it to the address below. 

South Carolina Department of Employment and Workforce
Employer Status Unit
P.O. Box 995
Columbia, SC 29202

 

Liable employers are required to establish an unemployment tax account with DEW.

Your organization is liable for South Carolina UI tax contributions if it meets any one of the following criteria.

• A non-profit organization, exempt under IRS Code 501-C-3, that employs four or more individuals for any 20 weeks within the current or preceding calendar year.
• A state government agency.
• A local government entity that employs at least one individual; regardless of the number of weeks the individual is employed or how much he is paid.
• A business that elects to become a liable employer.

Voluntary Election

An employer not liable for UI taxes can elect to become liable. Complete the Election to Become an Employer Form (UCE-154) and submit it to the address below.

South Carolina Department of Employment and Workforce
Employer Status Unit
P.O. Box 995
Columbia, SC 29202

 

All liable employers are responsible for preserving employee records and submitting quarterly wage reports. For more information, visit the Responsibilities of Liable Employers section below.

However, certain organizations in South Carolina do not pay quarterly UI taxes. Instead these entities reimburse DEW for the total dollar value of UI benefits paid to their former employees. These entities are known as reimbursable employers.

Non-profits can choose to become reimbursable employers by completing and mailing the Election to Become Reimbursable Form (UCE-155) along with an IRS Code 501-C-3 Exempt Letter to the address below. Without this documentation, the organization is considered an employer liable for paying quarterly UI taxes.

South Carolina Department of Employment and Workforce
Employer Status Unit
P.O. Box 995
Columbia, SC 29202

For more information on paying taxes as a reimbursable employer, read the Responsibilities of Reimbursable Employers section below.

Bonding Requirements for Certain Non-Profits

Non-profit organizations that have chosen to be reimbursable employers and do not possess title to real property and improvements valued over $2 million shall post a surety bond, money deposit, or other securities with DEW. This ensures the non-profit entity will have sufficient funds to pay the benefit charges owed on their account.

A non-profit organization shall be required to take one of the following actions 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
• 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 shall be computed on the total wages paid by a non-profit organization or group of organizations multiplied by the tax rate assigned to tax class 20.

Total wages paid is defined as the wages paid for the four completed calendar quarters immediately preceding:

• The date the non-profit chose to become a reimbursable employer.
• The renewal date in the case of a bond.
• The biennial anniversary of the date the non-profit chose to become reimbursable, in the case of a money deposit.

Whichever date is most recent and applicable.

If the non-profit organization did not pay wages in each of the four calendar quarters, DEW will determine the amount of the surety bond, cash deposit, securities, or other security required.

Bonds deposited must be in force no less than two calendar years and will be renewed with DEW’s approval at the appropriate time. Renewals will occur every two years as long as the non-profit continues to make its required payments.

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. Failure by any bond-covered organization to pay the full payments when due will render the surety liable on the bond.

DEW will keep any money deposit in an escrow account until the organization terminates its status as a reimbursable employer. At that time, DEW will return the money to the organization, less any required deductions.

The department can deduct funds to satisfy any unpaid payments as well as applicable interest and penalties described in South Carolina law. DEW will require the organization within 15 days following any deduction to deposit enough money to return the organization’s funding to its prior level.

The department can, at any time, review the deposit’s adequacy. If it determines an adjustment is necessary, DEW will require the organization to deposit additional funds within 15 days of written notice or return to the organization a portion of the deposit it no longer considers necessary.

If any non-profit organization fails to file a bond or make a deposit or fails to file an increased amount or make a previously made deposit whole, DEW can terminate the organization’s election to become a reimbursable employer. This termination will continue for no less than two calendar years beginning with the quarter in which such termination becomes effective.

 

All liable employers are responsible for preserving employee records and submitting quarterly wage reports. For more information, visit the Responsibilities of Liable Employers section below.

However, certain organizations in South Carolina do not pay quarterly UI taxes. Instead these entities reimburse DEW for the total dollar value of UI benefits paid to their former employees. These entities are known as reimbursable employers.

State government agencies are required to be reimbursable employers.

Local government entities that are liable for UI taxes can choose to become reimbursable employers by completing and mailing the Election to Become Reimbursable Form (UCE-155) to the address below. Without this documentation, the organization is considered an employer liable for paying quarterly UI taxes.

South Carolina Department of Employment and Workforce
Employer Status Unit
P.O. Box 995
Columbia, SC 29202

For more information on paying taxes as a reimbursable employer, read the Responsibilities of Reimbursable Employers section below.

 

The South Carolina Code of Law states that reimbursable employers can choose to pay the department using one of two methods.

Option One:

At the end of each calendar quarter, the department will bill reimbursable employers for the amount due.

Non-profit organizations must reimburse an amount equal to regular unemployment benefits paid plus 50 percent the amount of extended benefits paid to their former employees.

State and local governments must reimburse 100 percent of regular and extended benefits paid to their former employees.

Payment must be made no later than 30 days after the department mails the bill to the organization’s last known address.

All bills are final unless appealed within 15 days of the date listed on the document. If appealed, the department will conduct a hearing using facts to affirm, modify, or reverse its original ruling. All payments are due and payable until a decision is made, either modifying or reversing the amount due.

Appeals may be submitted at any SC Works center, by mail or fax using the information listed below.

Address:
South Carolina Department of Employment and Workforce
Appeal Tribunal
P.O. Box 995
Columbia, SC 29202

Fax: 803.737.0287

For more information on the appeals process in general, visit Appeals Information for Claimants and Employers or contact the Appellate Division 803.737.2520.

Option Two:

The organization may pay two percent of its quarterly taxable payroll to the department within 30 days after the end of the each quarter.

The department will apply those funds to any outstanding balance owed. At the end of each calendar year, the department will determine whether total payments for the year are less or more than what is owed.

Each organization, whose total payments for the year are less than the amount due, is liable for the unpaid balance.

If total payments exceed the amount owed for the year, all or a part of the excess funds may be refunded or kept as credit toward future payments.

 

Your business may apply for an UI tax account number online or by mail.

Register online through the South Carolina Business One Stop (SCBOS) by creating an employer account. Based on the information you supply, DEW determines if you are liable for UI tax contributions. If liable, you will receive your employer account number and tax liability information by mail.

During the registration process on SCBOS, you will be asked to establish a Personal Identification Number (PIN) which is necessary to perform future online transactions such as:

• Filing Quarterly Contribution and Wage Reports
• Amending previously filed Contribution and Wage Reports
• Changing account information

If are not able to register online, you may access a paper copy of the Employer Status Report Registration Form (UCE-151). This form must be printed and submitted by mail to the below address.

South Carolina Department of Employment and Workforce
Employer Status Unit
P.O. Box 995
Columbia, SC 29202

Additional Resources

Interactive Voice Response System
Once you have established an employer account with DEW, you can use our Interactive Voice Response (IVR) system to access specific account information. The system is available from 7:30 a.m. to 6:00 p.m. daily at 1.866.831.1726.

Through the IVR system employers can:

1. File a report indicating you employed zero individuals in the most recently completed calendar quarter.
   
2. Request 940 Certifications
   Each employer that pays its state UI taxes on time is allowed to claim a credit against its federal UI taxes. Each year, DEW certifies the tax rate, amount of taxable wages, and amount of tax paid by each employer in the prior calendar year to the Internal Revenue Service (IRS) through 940 Certifications. Employers that need a copy of the 940 Certification can make that request through the IVR.
   
   The Employer Accounts System only permits one 940 Certification request per day. If you need additional 940 Certifications, call back the following day.
   
   
3. Get your tax rate for the most recently completed calendar quarter

To use the IVR system you will need a touch-tone telephone, your DEW employer account number and PIN. If you forgot your PIN, contact the UI Tax Department for assistance at 803.737.3080.

 

Each employer must preserve the following records for five years.

For each pay period:

• Beginning and ending dates
• Largest number of workers employed each calendar week of the period

For each individual employed during the period:

• Name and Social Security number
• Total hours worked each week, if less than full time
• Wages paid (special payments included)
• Reasonable cash value paid in any medium other than cash
• Date hired, rehired, or returned to work after temporary layoff and the date and reasons job was lost

These records may be used by the department to verify eligibility for UI benefits or for potential future audits of your business.

 

Employers must file a Quarterly Contribution and Wage Report (UCE-120/101) each quarter.

The following are examples of wages that should be included in your report:

• All payments made for personal service, including bonuses and commissions paid to all workers of all ranks, including corporate officers.
• The cash value of all payments in any medium other than cash.
• All tips.
• Reasonable compensation for services provided, including K-1 distributions.
• Monies paid for time lost due to sickness or accident, unless paid out of benefit funds or other special accounts.
• Expense allowances, which are not regularly and reasonably segregated.
• Dismissal wages, which do not represent the worker’s interest in a pension fund.
• All monies paid before any deductions for such items as lodging, union dues, employee payments to pension or benefit funds, Social Security tax, and premiums on group insurance.

For questions about whether specific types of payments are considered wages, contact the Wage Records Section at 803.737.0330.

DEW does not mail Quarterly Contribution and Wage Reports. We offer two convenient methods for employers to file online through either the SCBOS or the South Carolina Automated Tax System.

DEW encourages all single account filers to use SCBOS. Filing with SCBOS will also allow you to pay your taxes electronically. Please call 803.898.5690 or contact the SCBOS Help Desk if you need assistance navigating through the SCBOS system.

We realize that online filing is not a realistic expectation for every employer. If you have less than 100 employees, and are unable to file and pay online, you may submit paper forms and payments to DEW. You must request a pre-printed quarterly contribution and wage report for each quarter that you do not file online.

Instructions for completing your Quarterly Contribution and Wage Report can be found here.

If you need to correct information on a submitted report, use the Statement to Correct Information Form (UCE-120-C). Adjustments can only be made for the most recent 16 quarters.

It is important to leave sufficient time at the end of the quarter to request the paper copy and have it returned by the appropriate due date. Due dates for each quarter are listed below.

Quarter	Due by:
January - March	April 30
April - June	July 31
July - September	October 31
October - December	January 31

To request a form, call the UI Tax Department at 803.737.3080 or email uitax@dew.sc.gov.

Please mail paper quarterly reports and payments to the below address.

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

 

Taxes are owed based on the amount of wages paid to your employees in a quarter, as reported on your quarterly wage report.

If you are a non-profit organization or government entity that has chosen to become reimbursable, visit the Responsibilities of Reimbursable Employers section for more information on how to pay your taxes.

All quarterly payments must be made by the respective due dates listed below.

Quarter	Due by:
January - March	April 30
April - June	July 31
July - September	October 31
October - December	January 31

You may submit an electronic payment when you file your quarterly report online at SCBOS. Taxes are calculated automatically when you file electronically. Detailed instructions on electronic payments can be found within the SCBOS system. Please call 803.898.5690 or contact the SCBOS Help Desk if you need assistance navigating through the SCBOS filing program.

If you choose to report quarterly wages using DEW’s paper form, you are responsible for calculating taxes owed as well as submitting payment by mail.

Please mail paper quarterly reports and payments to the below address.

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

 

Newly liable employers who do not acquire the experience of a previously liable employer begin with a predetermined tax rate set by South Carolina law. The tax rate for new employers is the tax rate applicable for tax rate class 12 for a given year. For the specific tax rate, please see the contribution table in effect for the current year.

Once an employer has accomplished 12 months of liability, they will have their tax rate computed on the date of the next rate computation based on their own history.

 

Employers who have accomplished 12 months of liability are considered experience-rated employers and have their tax rates set based on their benefit ratio.

The benefit ratio is defined as the total benefits charged against an employer’s account during the applicable period divided by the employer’s taxable payroll during that same period. A higher benefit ratio indicates a greater usage of the UI system and thus results in a higher tax class and tax rate.

Each employer’s benefit ratio is listed on the annual Notice of Contribution Rate Form which is typically mailed at the end of each year. Employers can use that benefit ratio to find their applicable tax rate for the year using the contribution table.

 

Determining Tax Rate Schedules

Under South Carolina law, tax rate schedules adjust automatically each year based on a formula that considers the:

• Projected benefit costs for the year (“base rate”)
• Amount of outstanding loans from the federal government (“base rate”)
• Interest owed to the federal government (“interest surcharge”)

Tax rates are set each year to fund these components. Each employer is also responsible for a Departmental Administrative Contingency Assessment (DACA) surcharge of 0.06 percent which is added to the base rate and interest surcharge:

Total Tax Rate = Base Rate + Interest Surcharge + DACA

South Carolina laws governing the tax rate assignment do not have an appeal process. If you disagree with any of the historical information contained in your Notice of Contribution Rate you may submit a written request for a review within 30 days from the date on the notice. You must submit your request, along with any documentation of errors, using the information below.

Address:
South Carolina Department of Employment and Workforce
Experience Rate Section
P.O. Box 995
Columbia, SC 29202

Email: rateinfo@dew.sc.gov

Fax: 803-737-2862

 

The tax rates applicable for wages paid between January 1, 2013 and December 31, 2013 are shown in the table. Each employer received their individual Notice of Contribution Rate in the mail based on their computed benefit ratio. Individual rates are based on their computed benefit ratio. The tax rate class assignment in the notice should be used for the full calendar year.

Rate Class	Lower Benefit Ratio	Upper Benefit Ratio	Base Rate/Replenish	Interest + Contingency	Total Effective Rate
1	0.000000	0.000001	0.00	0.095	0.0950
2	0.000002	0.001974	0.64	0.099	0.7390
3	0.001975	0.003536	0.71	0.103	0.8130
4	0.003537	0.004663	0.79	0.108	0.8980
5	0.004664	0.005844	0.88	0.113	0.9930
6	0.005845	0.007204	0.98	0.119	1.0990
7	0.007205	0.008307	1.08	0.126	1.2060
8	0.008308	0.009568	1.20	0.133	1.3330
9	0.009569	0.011401	1.34	0.141	1.4810
10	0.011402	0.013071	1.49	0.150	1.6400
11	0.013072	0.015295	1.65	0.160	1.8100
12	0.015296	0.017819	1.84	0.171	2.0110
13	0.017820	0.020744	3.51	0.273	3.7830
14	0.020745	0.024920	3.90	0.297	4.1970
15	0.024921	0.029429	4.34	0.323	4.6630
16	0.029430	0.036190	4.82	0.352	5.1720
17	0.036191	0.043311	5.35	0.384	5.7340
18	0.043312	0.054182	5.95	0.420	6.3700
19	0.054183	0.075548	6.61	0.460	7.0700
20	0.075549	999.999999	7.35	0.505	7.8550

2012 Revised Tax Rates

In the fiscal year 2012-13 budget, the SC General Assembly appropriated $77 million to the Department of Employment and Workforce (DEW) to make repayments on outstanding loans. Funds received from the General Assembly reduce the unemployment insurance tax rates for businesses.

In late September 2012, businesses received a revised tax rate notice that showed the new tax rate that businesses should use when paying third and fourth quarter taxes in October 2012 and January 2013.

Since first and second quarter taxes were paid at the higher rate, businesses received credits on any overpayments. The revised rate notice showed any applicable credit that the business received.

Due to federal regulations, refunds are not available for first and second quarter taxes. Because these taxes were paid accurately under the law that was in effect at the time they were paid, only credits can be issued for overpayments. Credits can be used against any future unemployment tax liability and do not expire.

The 2012 revised rate table is listed below.

Rate Class	Lower Benefit Ratio	Upper Benefit Ratio	Base Rate/Replenish	Interest + Contingency	Total Effective Rate
1	0.000000	0.000013	0.00	0.098	0.0980
2	0.000014	0.002175	0.61	0.102	0.7120
3	0.002176	0.003907	0.68	0.107	0.7870
4	0.003908	0.005084	0.76	0.112	0.8720
5	0.005085	0.005928	0.84	0.118	0.9580
6	0.005929	0.007516	0.94	0.125	1.0650
7	0.007517	0.008601	1.04	0.132	1.1720
8	0.008602	0.010330	1.16	0.140	1.3000
9	0.010331	0.012091	1.28	0.149	1.4290
10	0.012092	0.013907	1.43	0.159	1.5890
11	0.013908	0.016098	1.58	0.170	1.7500
12	0.016099	0.019060	1.76	0.182	1.9420
13	0.019061	0.022324	3.37	0.292	3.6620
14	0.022325	0.026485	3.74	0.318	4.0580
15	0.026486	0.032421	4.16	0.347	4.5070
16	0.032422	0.039447	4.62	0.379	4.9990
17	0.039448	0.049122	5.14	0.414	5.5540
18	0.049123	0.060059	5.71	0.453	6.1630
19	0.060060	0.084817	6.34	0.497	6.8370
20	0.084818	999.999999	7.04	0.546	7.5860

Original 2012 Tax Rates

The tax rates applicable for wages paid between January 1, 2012 and December 31, 2012 are shown in the table. Each employer received their individual Notice of Contribution Rate in the mail based on their computed benefit ratio. The tax rate class assignment in the notice should be used for the full calendar year.

Rate Class	Lower Benefit Ratio	Upper Benefit Ratio	Base Rate/Replenish	Interest + Contingency	Total Effective Rate
1	0.000000	0.000013	0.00	0.098	0.0980
2	0.000014	0.002175	0.71	0.102	0.8120
3	0.002176	0.003907	0.79	0.107	0.8970
4	0.003908	0.005084	0.88	0.112	0.9920
5	0.005085	0.005928	0.97	0.118	1.0880
6	0.005929	0.007516	1.08	0.125	1.2050
7	0.007517	0.008601	1.20	0.132	1.3320
8	0.008602	0.010330	1.33	0.140	1.4700
9	0.010331	0.012091	1.48	0.149	1.6290
10	0.012092	0.013907	1.65	0.159	1.8090
11	0.013908	0.016098	1.83	0.170	2.0000
12	0.016099	0.019060	2.03	0.182	2.2120
13	0.019061	0.022324	3.89	0.292	4.1820
14	0.022325	0.026485	4.33	0.318	4.6480
15	0.026486	0.032421	4.81	0.347	5.1570
16	0.032422	0.039447	5.34	0.379	5.7190
17	0.039448	0.049122	5.93	0.414	6.3440
18	0.049123	0.060059	6.59	0.453	7.0430
19	0.060060	0.084817	7.32	0.497	7.8170
20	0.084818	999.999999	8.14	0.546	8.6860

 

2011 Contribution Table

The tax rates applicable for wages paid between January 1, 2011 and December 31, 2011 are shown in the table. Each employer received their individual Notice of Contribution Rate in the mail based on their computed benefit ratio. The tax rate class assignment in the notice should be used for the full calendar year.

Tax Class	Base Rate	Interest Surcharge	Contingency Assessment	Total Effective Rate	Estimated Cost per Worker	Lower Benefit Ratio	Upper Benefit Ratio
1	0.00%	0.043%	0.06%	0.1030%	$10.30	0	0.000001
2	0.71%	0.048%	0.06%	0.8180%	$81.80	0.000002	0.002158
3	0.79%	0.053%	0.06%	0.9030%	$90.30	0.002159	0.003671
4	0.88%	0.059%	0.06%	0.9990%	$99.90	0.003672	0.004738
5	0.98%	0.066%	0.06%	1.1060%	$110.60	0.004739	0.005738
6	1.09%	0.073%	0.06%	1.2230%	$122.30	0.005739	0.007117
7	1.21%	0.081%	0.06%	1.3510%	$135.10	0.007118	0.008299
8	1.34%	0.090%	0.06%	1.4900%	$149.00	0.0083	0.010035
9	1.49%	0.100%	0.06%	1.6500%	$165.00	0.010036	0.012092
10	1.66%	0.111%	0.06%	1.8310%	$183.10	0.012093	0.013992
11	1.84%	0.123%	0.06%	2.0230%	$202.30	0.013993	0.01601
12	2.04%	0.137%	0.06%	2.2370%	$223.70	0.016011	0.018711
13	3.91%	0.263%	0.06%	4.2330%	$423.30	0.018712	0.022235
14	4.35%	0.292%	0.06%	4.7020%	$470.20	0.022236	0.026332
15	4.83%	0.324%	0.06%	5.2140%	$521.40	0.026333	0.032546
16	5.37%	0.360%	0.06%	5.7900%	$579.00	0.032547	0.039836
17	5.96%	0.400%	0.06%	6.4200%	$642.00	0.039837	0.050293
18	6.62%	0.445%	0.06%	7.1250%	$712.50	0.050294	0.065183
19	7.36%	0.494%	0.06%	7.9140%	$791.40	0.065184	0.088588
20	8.18%	0.549%	0.06%	8.7890%	$878.90	0.088589	1000

2004 - 2010 Contribution Table

These tax rates were in effect for wages paid between January 1, 2004 and December 31, 2010.

Employer’s Reserve Ratio	Base Rate	<2.00% 0.10%	<1.90% 0.20%	<1.80% 0.30%	<1.70% 0.40%	<1.60% 0.50%	<1.50% 0.60%	<1.40% 0.70%
+9% or More	0.54%	0.64%	0.74%	0.84%	0.94%	1.04%	1.14%	1.24%
+8% but <9%	0.89%	0.99%	1.09%	1.19%	1.29%	1.39%	1.49%	1.59%
+7% but <8%	1.24%	1.34%	1.44%	1.54%	1.64%	1.74%	1.84%	1.94%
+6% but <7%	1.59%	1.69%	1.79%	1.89%	1.99%	2.09%	2.19%	2.29%
+5% but <6%	1.94%	2.04%	2.14%	2.24%	2.34%	2.44%	2.54%	2.64%
+4% but <5%	2.29%	2.39%	2.49%	2.59%	2.69%	2.79%	2.89%	2.99%
<+4% but >-5%	2.64%	2.74%	2.84%	2.94%	3.04%	3.14%	3.24%	3.34%
-5% but <-10%	2.99%	3.09%	3.19%	3.29%	3.39%	3.49%	3.59%	3.69%
-10% but <-15%	3.34%	3.44%	3.54%	3.64%	3.74%	3.84%	3.94%	4.04%
-15% but <-20%	3.69%	3.79%	3.89%	3.99%	4.09%	4.19%	4.29%	4.39%
-20% but <-25%	4.04%	4.14%	4.24%	4.34%	4.44%	4.54%	4.64%	4.74%
-25% but <-30%	4.39%	4.49%	4.59%	4.69%	4.79%	4.89%	4.99%	5.09%
-30% but <-35%	4.74%	4.84%	4.94%	5.04%	5.14%	5.24%	5.34%	5.44%
-35% but <-40%	5.09%	5.19%	5.29%	5.39%	5.49%	5.59%	5.69%	5.79%
-40% or More	5.40%	5.50%	5.60%	5.70%	5.80%	5.90%	6.00%	6.10%

 

Late Payments and Reports

If you fail to submit contribution or wage reports by the due dates below, you’ll receive a Notice of Delinquency.

Quarter	Due by:
January - March	April 30
April - June	July 31
July - September	October 31
October - December	January 31

If you then fail to file a report within 15 days of receiving the Notice of Delinquency, DEW will assess a 10 percent penalty of the contributions due; no less than $25 and no more than $1,000 in addition to contributions due.

Any employer that has failed to file a report at the time of the next tax rate calculation will receive a delinquent tax rate assignment of tax class 20 for the next year.

Any employer that has failed to pay contributions owed and has an outstanding tax lien from DEW will receive a delinquent tax rate assignment of tax class 20 for the next year or until the outstanding debt is paid.

Interest on Delinquent Contributions

DEW charges one percent interest per month on delinquent contributions. Contributions that accrued prior to the establishment of an employer’s liability bear 0.5 percent interest per month to the date we established liability. Then late contributions bear one percent interest per month thereafter until contributions are paid.

Acquiring Another Business

Any person or legal entity acquiring an employer’s business that continues operating the acquired business has a tax rate determined by current and previous employment experience.

Acquiring Part of Another Business

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 the succession occurred so that proper steps can be taken to adjust his status as a liable employer.

 

Extensions

If you cannot pay your taxes on time, send a written request for an extension to the below address before the payment is due.

South Carolina Department of Employment and Workforce
Delinquency Unit
P.O. Box 995
Columbia, SC 29202

DEW may, if you show good cause, grant an extension for making payment. However, the extension will bear interest at one percent per month.

For questions contact the Delinquency Unit at 803.737.3085

Refunds

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 Notice. When preparing your next contribution report, you can deduct the credit due, as shown on the notice for quarterly contributions due. If the amount paid in error is too large to be adjusted in a reasonable time you can request a refund.

To request a refund, mail or fax a letter containing your account number and applicable information using the information below.

Address:
South Carolina Department of Employment and Workforce
Contributions Unit
P.O. Box 995
Columbia, SC 29202

Fax: 803.737.2659

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

 

To ensure all businesses are properly reporting and paying UI taxes, DEW conducts systematic examination and verification of an employer’s books and records through field audits. DEW conducts both random and targeted audits.

Objectives of a Field Audit

The purpose of an audit includes:

• Determining taxable wages the employer paid and the contributions, interest, and penalties DEW law requires on these wages.
• Reconciling wages reported with amounts discovered.
• Determining the employer’s financial ability to meet UI tax obligations.

During a Field Audit, DEW staff members may need access to any of the following records:

• Payroll information, i.e. time cards, time sheets, earning statements, payroll summaries, etc.
• Books of original entry or general books with payroll information, i.e. payroll ledgers, check registers, cash disbursement journals, profit and loss statements, balance sheets, etc.
• State and federal tax reports on payroll, i.e. employers Quarterly Contribution and Wage Report (UCE-101/120); Federal Forms: 940, Annual Report of FUTA; 941, Social Security Report; etc.

 

Field deputies are available to help employers understand UI legal requirements and are also responsible for the following activities:

• Establishing tax liability
• Enforcing compliance
• Changing employer accounts
• Securing delinquent tax and wage reports
• Issuing subpoenas
• Deposing claimants and employers
• Preparing cases for prosecution
• Prosecuting non-compliant employers
• Auditing employer accounts
• Auditing financial records
• Collecting delinquent taxes
• Helping other states collect funds
• Coordinating IRS and S.C. Department of Revenue activities

 

For additional assistance, contact a field service district office near you.

Administrative Section – Columbia
Columbia, South Carolina
Department Director
803.737.2499
803.737.0299 Fax

Anderson District Office
Abbeville, Anderson, Greenwood, McCormick, Oconee Counties, and Clemson, S.C.
864.224.2118

Charleston District Office
Allendale, Bamberg, Barnwell, Berkeley, Charleston, Colleton, Dorchester, and Hampton Counties
843.953.8484

Beaufort District Office
Beaufort and Jasper Counties
843.522.1170

Columbia District Office
Calhoun, Edgefield, Fairfield, Lexington, Newberry, Richland, Saluda, and Orangeburg Counties
803.737.3053

Aiken District Office
Aiken County
803.641.7634

Hartsville District Office
Chesterfield, Clarendon, Darlington, Dillon, Florence, Kershaw, Lee, Marlboro, Marion, Sumter, and Williamsburg Counties
843.857.9309

Greenville District Office
Greenville, Laurens, Pickens Counties and Greer, S.C.
864.232.5189

Horry District Office
Georgetown and Horry Counties
843.347.5400

Spartanburg District Office
Spartanburg, Cherokee, and Union Counties
864.585.2241

Rock Hill District Office
Chester, Lancaster, and York Counties
803.329.2363