Businesses to see savings from revised 2012 tax rates

September 27, 2012 – S.C. businesses will receive their revised 2012unemployment insurance tax rates during the next several days, the SCDepartment of Employment and Workforce (DEW) announced.

Because of $77 million in state general fund appropriations, tax rateswere recalculated and will save impacted businesses about 12 percent for the year compared to the original 2012 rates. The state appropriationwas designed to help pay back outstanding federal loans and easebusinesses’ transition to the new tax rate structure implemented in2011.

The revised tax rate notices, which are being mailed to affectedbusinesses, will inform employers of the new rate they should use whenfiling third and fourth quarter reports, due Oct. 31 and Jan. 31, 2013respectively.

The notices will also list applicable credits businesses will receivefor payments made in the first and second quarters, which total morethan $32 million.

Federal law requires that any overages paid when tax rates were highermust remain as credits to be applied toward future taxes. Creditsrequire no action on the part of the business, and can be used
against any future unemployment tax liability and do not expire.

The 2013 tax rates are on track to be released in early November.

For updates, visit http://dew.sc.gov/emp‐land.asp or contact [email protected].

DEW last month voluntarily repaid $106.5 million to the federalgovernment for the agency’s unemployment trust fund loan bringing theoutstanding balance to approximately $675.7 million. The state isscheduled to repay the entire loan by the end of 2015.