Bill > S0688

This bill modifies several aspects of South Carolina's unemployment insurance tax code, focusing on changes to calculation methods, penalties, and fund management. Specifically, the bill updates the "benefit ratio" calculation method for employers by gradually increasing the lookback period from 12 to 20 calendar quarters over several years, which affects how unemployment insurance tax rates are determined. It establishes a new "solvency target" for the unemployment trust fund, defining a method to calculate the fund's adequate level and introducing a "solvency surcharge" mechanism to help rebuild the fund if it falls below the target. The bill removes existing caps on penalties for employers who fail to file reports or pay contributions on time, potentially increasing financial consequences for non-compliance. For tax executions (liens) issued after January 1, 2027, the bill introduces an increased tax rate of two percent above the standard rate for employers with outstanding delinquent taxes. The changes are designed to improve the financial stability of the unemployment insurance trust fund, ensure more consistent reporting and payment by employers, and create more flexible mechanisms for managing the fund's resources. The bill is set to take effect on July 1, 2026, after approval by the Governor.

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https://www.scstatehouse.gov/billsearch.php?billnumbers=0688&session=126&summary=B