DEW cuts 2016 Unemployment Tax Rate
November 3, 2015
For the second consecutive year, the S.C. Department of Employment and Workforce (DEW) is cutting the Unemployment Insurance (UI) tax rate, saving South Carolina businesses more than $151 million over that period.
The 2016 tax rate represents an average reduction of 17.1% over last year’s rate, saving businesses more than $69 million.
Rate reductions are a direct result of the state’s economy improving, businesses employing more than 2 million South Carolinians, DEW dramatically lowering benefit payouts, and legislative and DEW policy changes to restrict benefits to individuals who lost their job through no fault of their own.
“When we save businesses money, we give them cash flow, and they can expand, putting more of our people to work – that’s why this announcement is so important,” said Gov. Nikki Haley. “South Carolina is on the move: we’ve seen record lows in unemployment and more people working than ever before, and, as we continue to invest in education and workforce development, we’ll continue to celebrate.”
In June, DEW announced that it had paid off a nearly $1 billion federal loan used to pay state unemployment insurance benefits during the Great Recession. Early and voluntary payments on the loan by DEW between 2011 and 2015 led to returning the Trust Fund to solvency, saving businesses more than $12 million in interest payments.
“The economy is improving and more South Carolinians are working than any time in our state’s history. This, coupled with paying off the federal loan, has allowed us to reduce the tax burden on businesses while rebuilding the Trust Fund to a level that will sustain a recession,” said Cheryl Stanton, DEW’s executive director. “Our gratitude goes out to the business community and workforce development training partners who have worked hard to create jobs and provide the skilled workers to fill them.”
This is also the third consecutive year that businesses will receive their individual tax rate notices during the first week of November, six months before the first tax payment is due. Wage and Contribution reports are due by April 30, 2016, and these tax rates apply to the first $14,000 earned by each employee.
About SCDEW
The South Carolina Department of Employment and Workforce is putting South Carolinians to work. The agency invests in building a pipeline of quality workers, matches workers with jobs, and is a bridge for individuals who find themselves out of work for no fault of their own. This promotes financial stability and economic prosperity for employers, individuals and communities. SCDEW is dedicated to advancing South Carolina through services that meet the needs of the state’s businesses, jobseekers and those looking to advance their careers.
