The South Carolina Department of Employment and Workforce (DEW) is cutting the Unemployment Insurance (UI) tax rate on South Carolina businesses for the fifth straight year in 2018.
The tax rate will decrease, on average, 10.2 percent in 2018 compared to the previous year. Over the last five years, the UI tax rate has dropped 36.4 percent. This will save businesses an average of $20 per employee.
“Any time we are able to cut taxes for South Carolina businesses, it gives them the flexibility to grow and create more opportunities for their employees,” South Carolina Gov. Henry McMaster said. “We continue to see record lows in unemployment and more people working in South Carolina than ever before, and if we’re able to continue to cut taxes and invest in education and workforce development, we know our state’s brightest days are ahead of us.”
Officials say the rate reductions are a result of the state’s strong economy as the unemployment rate is at a 16-year low.
“Businesses are investing in South Carolina by expanding here and, in doing so, have put a record 2.23 million people to work, the most than any time in our state’s history. This strong economy is allowing us to invest back into these businesses by reducing their tax burden while rebuilding the Trust Fund to a level that will sustain a recession,” Cheryl Stanton, DEW’s executive director, said. “Our gratitude goes out to the business community and workforce development training partners who have worked hard to create jobs and provide the skilled workers to fill them.”
South Carolina Staffing Association President Debbie Varner said the tax reduction will result in more jobs and more capital investment.
“Rebuilding the trust fund in a sound manner and being able to lower rates at the same time is great for our members,” Ben Homeyer, South Carolina state director of the National Federation of Independent Business, said. “This news today along with the latest data we have collected from our members leading in to the holiday season have allowed folks to put more money back in to their business as well as other business in the state.”