South Carolina Businesses Benefit from new Payroll Tax Structure
Posted on September 23, 2011
In the next week, the South Carolina Department of Employment and Workforce will send businesses their revised unemployment insurance tax rate letter for the third and fourth quarters. Businesses who over-paid in the first and second quarters will receive notification of their credit balance as well. Your letter could arrive as soon as Friday, September 23, 2011. This recent legislation is to reimburse federal loans and facilitate the change to the new tax rate structure enacted this year. The credit and refund amounts will total around $80 million in savings in the first half of the year.
The tax notice will include the new tax rate to be used when filing third and fourth quarter reports, which are estimated to save businesses an additional $58.2 million in the second half of the year.
Overpayments from the first quarter will remain as credit to be used for payment towards future taxes and will not require action from the business. Second quarter credits may need to be handled differently.
Paycor clients will be contacted with more information on how to handle their second quarter credits.