This week, the Department of Employment and Workforce will issue tax notices to employers in South Carolina for the unemployment insurance tax rates effective January 1, 2014.
It is our hope that by providing the tax notices now, businesses can better plan for what they will owe by April 30, 2014.
· The 2014 tax rates reflect a 0.6 percent decrease from the 2013 tax rates.
· It is expected that South Carolina businesses will qualify for the full 5.4 percent FUTA tax credit available for federal unemployment taxes payable by January 31, 2014. If South Carolina receives the full FUTA tax credit, South Carolina employers’ federal tax rate will be 0.6 percent again this year. The Department of Labor will notify us about the tax credit application by November 10, 2013.
· State unemployment tax rates are re-determined each calendar year based on the employer’s history as of the preceding June 30th. An employer’s exact rate depends on its experience with the unemployment insurance (UI) system as compared to all other employers, and on current economic conditions.
· The 2014 tax rates were calculated using a three year look back period, meaning an employer’s wages and experience with the UI system over the last three years (July 1, 2010 through June 30, 2013) was used to calculate their 2014 tax rate. In 2013, a 9 year look back period of available data was used to calculate rates (i.e. the period July 1, 2003 through June 30, 2012).
I hope this information is helpful in case you hear from constituents who may have questions regarding their UI tax rates. More information can be found at www.dew.sc.gov/emp-taxes.asp.