Taxable Wage Base

For the purpose of computing tax, count only the first $7,000.00 of a worker’s wages for the calendar year. If an employer pays wages to an individual in another state and the individual is transferred to South Carolina during the same calendar year and is paid wages by the same employer, the wages may be added to the amount of wages paid to the individual in the other state to arrive at the $7,000.00 limitation.

Computation of Excess Wages:

"Excess Wages" are defined as all wages paid in excess of $7,000.00 in a calendar year. For example, if an employee earns a total of $8,500.00 in the first quarter of the calendar year, $1,500.00 will be "excess wages" and $7,000.00 will be "taxable"; for the remaining quarters in the same calendar year for the same employee, all "Total Wages" paid will be in "excess" and "Taxable Wages" will be "zero".

In the event a total or partial acquisition of an employer’s account occurs, the successor employer shall be entitled to use the wages which had been reported by the predecessor employer up to the date of the acquisition, in order to compute the amount of excess for the remainder of the calendar year.

The use of such wages would be allowed regardless of whether or not the experience rating record is transferred to the successor employer.