Tax Information For Employers
Q. What is a new employer tax rate?
A. 3.34% is
the current new employer rate. A contingency assessment of .06% is also due.
Q. At what point in time
does a new employer become eligible for an experience rate computation?
A. After (12) consecutive months
from the date liability was accomplished.
Q. What is the formula for
calculating tax rates?
A. Divide the "reserve balance" by
the most "recent annual taxable payroll" – the most "recent annual
taxable payroll" as of June 30th. The resultant percentage is
compared to the tax tables as described in the Employer Handbook
Section.
Q. What is "Reserve
Balance"?
A. Total "Contributions Paid" minus
total "Benefits Charged" to an employer’s account equals the "Reserve
Balance."
Q. What are the minimum and
maximum base tax rates?
A. The minimum base contribution
rate is 0.54% and the maximum base contribution rate is 5.40%.
Q. Does South Carolina allow
for "voluntary contributions"?
A. No.
Q. What is South Carolina
taxable wage base per person?
A. The taxable wage base is $7,000.
Q. If an employee transfers
from another state into South Carolina during the same calendar year,
does the employer start over on the tax base when it is the same legal
entity?
A. No.
Q. When are quarterly report
forms mailed to the employer?
A. Quarterly report forms are mailed
by the 20th day of the last month each quarter.
Q. When are quarterly
Contribution and Wage Reports due?
A. Quarterly reports are due the
last day of the month following the end of the quarter.
Q. If no wages were paid
during a quarter, is an employer required to file a quarterly report?
A. Yes, indicating, "0" wages paid.
Q. What is the interest and
penalty assessment rate for failure to file and/or submit payment of a
quarterly contribution and wage report timely?
A. Interest is assessed on late
payments at the rate of one percent of the contributions due per month.
| The Commission
shall assess a report penalty of 10% of the contributions due, not
less than $25 nor more than $1,000 for failure to file a
quarterly report. |
Q. How can amendments be made to previously filed
contribution and wage reports?
A. Corrections can be made by obtaining a copy of
Form UCE-120-C, Statement to Correct Information; the employer may also
make corrections on a copy of a previously filed report, indicate on the
copy "Corrected" and submit corrections to the SCESC.
Q. Is there a limit on the number of years corrections can
be made?
A. The prior (4) years or (16) quarters may be
adjusted; no corrections are allowed beyond this time period.
Q. Does a sole proprietor pay taxes on family members’
wages?
A. Spouses’ wages are exempt under the SCES Law;
further, minor children, under the age of 18, working for a parent are
also exempt. Also, parents employed by their child are exempt.
|
