South Carolina businesses are getting a unemployment tax rate break from the federal government.
The Federal Unemployment Tax Act (FUTA) surcharge decreased .2 percent on the first $7,000 of each employee’s wages starting on July 1, adding up to almost $55 million in tax relief.
According to the SC Department of Employment and Workforce, the 2011 rate will also be cut by about 50 percent.
New state budget money has been dedicated to offsetting repayments to the federal government for unemployment benefit extensions. This and the federal surcharge reduction will ease the costs –and complaints– of businesses trying to regain their economic footing since the recession.
South Carolina undertook one of the nation’s most aggressive schedules to make businesses repay the federal government early, in order to save interest and fees. In this legislative session, lawmakers sought ways to ease that burden to businesses, who said they would move out-of-state or close their doors to avoid high unemployment benefits fees.
