Employer Liable for Payments in Lieu of Contributions

Section 41-31-630 of the South Carolina Employment Security Law, as amended, provides that employing units of nonprofit organizations, State and local government entities may elect to make payments to the Commission in lieu of contributions. Two methods are provided for such payments:

1. At the end of each calendar quarter, the Commission shall bill each such organization which has elected to make payments in lieu of contributions for an amount equal to the full amount of regular benefits plus one-half of the amount of extended benefits paid during such quarter that is attributable to service in the employ of such organization.

   After January 1, 1979, the State or any political subdivision or any instrumentality shall be required to reimburse all extended benefits attributable to service performed in its employ.

   Payment of any bill so rendered shall be made not later then thirty days after such bill is mailed to the last known address of the nonprofit organization or is otherwise delivered to it, unless there has been an application for review and redetermination in accordance with the following paragraph.

   The amount due specified in any bill from the Commission shall be conclusive on the organization unless, not later than fifteen days after the bill was mailed to its last known address or otherwise delivered to it, the organization files an application for redetermination by the Commission setting forth the grounds for such application. After affording the organization a reasonable opportunity for a fair hearing consonant with the provisions of Section 41-35-720, the Commission shall by its decision make findings of fact and conclusion of law and upon the basis thereof affirm, modify, or reverse its original ruling with respect to the amount originally specified in the bill.

2. Payment of two percent of the quarterly taxable payroll of such organization of the Commission within thirty days after the close of each such calendar quarter. The Commission shall apply such funds to the payment of bills rendered to the organization under paragraph (1) of this section. At the end of each calendar year, the Commission shall determine whether the total of payments for such year made by the organization is less than, or in excess of, the total amount of regular benefits plus one-half of the amount of extended benefits paid to individuals during such calendar year based on wages attributable to service in the employ of such organization. Each organization whose total payments for such year are less than the amount so determined shall be liable for payment of the unpaid balance to the fund in accordance with paragraph (1) of this section. If the total payments exceed the amount so determined for the calendar year, all or a part of the excess may, at the discretion of the Commission, be refunded from the fund or retained in the fund as part of the payments which may be required for the next calendar year.