•Government and non-profit Employers can choose to be reimbursable
Employers versus Contributory Employers. Reimbursable Employers reimburse the
Unemployment fund only when benefits are paid out, reimbursing the state dollar
for dollar for benefits charged against their accounts. Contributory Employers
pay taxes on wages paid to contribute to the fund. The UI Agency must approve
the registration of reimbursable Employers before the Employer’s account is
active in SUITS and able to submit wage reports.
•The election of the reimbursement method for newly formed not-for-profit organizations must be made in writing to the agency within 30 days of coverage under the law. Once electing the reimbursement method, law only permits an Employer to change his/her option after two years with written notice.
What is Liability Threshold?
•Other, Agricultural, and Domestic/Household Employers have wage
thresholds that must be met before the Employer is liable to pay
taxes.
o Other Employers must pay
$1,500.00 or more an individual(s) during any calendar quarter or the current or
preceding years to be held liable.
o Domestic and Household
Employers must pay 1,000 or more to an individual(s) during any calendar quarter
of the current or preceding calendar to be held liable.
o Agricultural Employers must
pay 20,000 or more to an individual(s) during any calendar quarter of the
current or preceding calendar to be held liable.
•Any Employer for some portion of a day in 20 calendar weeks in either the
current or preceding year, had one or more individuals in employment. The number
of employees within the 20-week threshold varies by employment type.
•Any Employer liable for FUTA in another state is liable from the moment
the first wage (of any amount) is paid.
•Governmental Employers are liable from ‘dollar one’ of wages paid in South Carolina.
What is Liability in the Future?
When an Employer is deemed to be liable in the future, it means that it has reported during the registration process that either:
•The Liability Threshold will be met within a year in the future,
Or
•The date wages will first be paid is no more than a year in the future.
When is an Employer Not Liable?
When an Employer is deemed to be not liable, it means that it has reported during the registration process that no wages are expected to be paid; the Employer does not meet the Liability Threshold for their employment type.
What is a Client?
•A client is an Employer who has an agreement with an Agent for the Agent to perform certain UI roles on behalf of the client.
•The client or Agent must provide the UI agency with a Power of Attorney (POA) document to establish the client/Agent relationship.
What is an Agent?
•An Agent is a third-party administrator who has an agreement with an Employer (client) to perform certain UI roles on behalf of the client. PEO’s must register as Agents in order to do work on behalf of an Employer.
•The client or Agent must provide the UI agency with a Power of Attorney (POA) document to establish the client/Agent relationship.
Are there Communications associated with Employer Registration?
Yes, there are several communications related to Employer Registration:
•The Employer Packet – this communication is sent to a new Employer upon registration via its preferred method of communication.
•The Notice of Future Liability – this notification is emailed 30 days prior to liability date to new Employers who have registered with a future liability date.
Are there reports associated with Employer Registration?
Yes, the Employer Registration – LMI Report. This is a daily-generated report for South Carolina’s Labor Market Information (LMI) department that contains NAICS Classification Information from New/Updated Employers.