NFIB State Director Ben Homeyer joined Gov. Henry McMaster and other leaders at the state capitol today to announce that South Carolina’s unemployment tax rate for employers will remain unchanged or, in some cases, decrease in 2022.
“While other states had to take out millions of dollars in loans to cover the cost of unemployment, South Carolina took a fiscally responsible approach that is now paying dividends in lower taxes for our businesses and zero debt to repay,” the governor. “Today’s announcement will save South Carolina’s businesses millions of dollars, allowing them to reinvest into our state and create even more jobs for our people.”
With a balance of approximately $1.19 billion, South Carolina will:
- Set tax year 2022 rates to raise approximately the same level of revenue as 2020 and 2021.
- Rates will either be lower than the prior two years or remain the same.
- No tax rate class will experience an increased tax rate for 2022.
- Not require any solvency surcharge due to the sufficiently high trust fund balance.
- Maintain a balance that ensures the state could withstand another economic contraction.
Homeyer thanked the governor, lawmakers, and other officials for their efforts to ease the tax burden on South Carolina’s job creators.
“Small businesses had a rough couple of years — the pandemic, labor shortages, breaks in the supply chain — but South Carolina businesses have continued to persevere,” Homeyer said. “Making sure that all of our businesses don’t see this increase in their UI rates — and in many cases for small businesses are going to see a reduction — is something that we’re greatly appreciative of.”
“I want to thank you … as we continue to operate and thrive through these difficult times.” Homeyer’s comments begin at about the 22:30 mark.
Click here to learn more about today’s announcement.