Liability is determined by looking at three factors:
1. Does the Employer meet the definition of an Employer?
a. If the
answer to this question is “Yes”, the Division of Unemployment Insurance
proceeds to question 2.
b. If the answer is “No”, the Employer is not liable for Unemployment Insurance coverage.
2. Do employee(s) perform all or part of their service in state?
a. If
employee(s) perform all of their service in state, UI agency proceeds to
question 3 below.
b. If no
employee performs services in South Carolina, the Employer is not liable for
Unemployment Insurance coverage in South Carolina.
c. If employee(s) perform part of their service in South Carolina, while performing services in other state(s), the UI agency must ask additional questions to determine liability.
3. Does the Employer meet any exemptions covered under “Definition of Employment”?
a. If no exemptions apply, the Employer is liable to pay South Carolina Unemployment Insurance taxes.
b. If an exemption applies to all workers, an Employer would not be liable for Unemployment Insurance taxes.