COLUMBIA, SC (WSPA) – Heads of state announced Thursday that South Carolina’s unemployment insurance tax rates for employers will either decrease or remain unchanged next year.
They said this was possible through the use of money from the CARES Act to help replenish the state’s UI trust fund.
State officials say in 2020, on the recommendation of Governor McMaster and Executive Director Ellzey, the General Assembly invested about $ 835 million in the UI trust fund.
They said the move saved South Carolina businesses millions in taxes and helped South
Caroline to avoid federal loan repayment and interest.
“While other states have had to take out millions of dollars in loans to cover the cost of unemployment, the South
Carolina has taken a fiscally responsible approach that now pays dividends in less taxes for our
businesses and no debt to pay back, ”Governor Henry McMaster said. “Today’s announcement will save
millions of dollars to South Carolina businesses, allowing them to reinvest in our state and create even
more jobs for our people.
According to the South Carolina Department of Employment and Workforce, a balance of about $ 1.19 billion, South Carolina:
- Set the rates for the 2022 tax year to increase approximately the same level of income as in 2020 and 2021.
- The prices will either be lower than those of the two previous years, or unchanged.
- No tax rate class will experience a tax rate increase for 2022.
- Does not require any solvency surcharge due to sufficiently high trust fund balance.
- Maintain a balance that ensures that the state could withstand another economic contraction.
“We are delighted to announce stable tax rates for the second year in a row after one of the most difficult economic times in recent history,” said Dan Ellzey, executive director of the Department of Employment and the workforce of SC. “Currently, eleven states have outstanding loan balances and five are still actively borrowing federal funds. California currently accumulates about $ 37 million in interest per month on debt it owes to the federal government. Without the judicious investment of the CARES Act funds, South Carolina might have had to rebuild roughly $ 836 million between 2022 and 2025. “
Officials said tax rate notices will be sent to business owners next week.