COLUMBIA, Oct. 10, 2013--South Carolina is ahead of schedule when it comes to paying back the $977 million it initially borrowed from the federal government in order to cover unemployment costs.
After a $75 million dollar payment in September, the outstanding balance will be approximately $455 million. The state is scheduled to repay the entire amount by the end of 2015.
This means that employers will see a reduction in the tax rate that they are paying per employee (see chart). Once this loan is completely paid off, employers will then again be allowed to deduct payroll taxes on their returns.