H*3626 Session 106 (1985-1986)
H*3626(Rat #0387, Act #0362 of 1986) General Bill, By House Ways and Means
Similar(S 1111, H 3573)
A Bill to amend Article 3, Chapter 27 of Title 41, Code of Laws of South
Carolina, 1976, relating to the South Carolina Employment Security Law, by
adding Section 41-27-410 so as to provide for a definition of Employment
Security Administrative Contingency Assessments; to amend Sections 41-31-10,
41-31-40, 41-31-50, as amended, 41-31-60, as amended, 41-31-80, as amended,
and 41-31-670, relating to certain employer contributions or contribution
rates under the Employment Security Law, so as to revise these rates; to amend
Section 41-31-150, relating to the treatment of fractions of a cent under the
Employment Security Law; to amend Section 41-31-360, relating to adjustments
and refunds; to amend Section 41-31-380, relating to a lien for contributions,
interest, penalties, and costs; to amend Section 41-31-390, relating to the
issuance of warrants of execution for collection of contributions; and to
amend Section 41-31-400, relating to the procedures under execution, so as to
include certain references to Employment Security Administrative Contingency
Assessments within these Sections; to amend Chapter 31 of Title 41 of the 1976
Code, relating to contributions and payments under the Employment Security Law
by adding Article 9 so as to provide for the payment and collection of
Employment Security Administrative Contingency Assessments; and to amend
Article 5, Chapter 33 of Title 41 of the 1976 Code, relating to the Employment
Security Special Administration Fund by adding Section 41-33-710 so as to
establish the Employment Security Administrative Contingency Fund and provide
for the manner in which the money in this fund must be deposited,
administered, and disbursed.
03/10/86 House Introduced, read first time, placed on calendar
without reference HJ-1361
03/12/86 House Read second time HJ-1556
03/13/86 House Read third time and sent to Senate HJ-1597
03/18/86 Senate Introduced and read first time SJ-1058
03/18/86 Senate Referred to Committee on Finance SJ-1058
03/18/86 Senate Recalled from Committee on Finance SJ-1070
03/25/86 Senate Read second time SJ-1197
03/25/86 Senate Unanimous consent for third reading on next
legislative day SJ-1198
03/26/86 Senate Read third time and enrolled
04/02/86 Ratified R 387
04/03/86 Signed By Governor
04/03/86 Effective date 04/03/86
04/03/86 Act No. 362
04/15/86 Copies available
(A362, R387, H3626)
AN ACT TO AMEND ARTICLE 3, CHAPTER 27 OF TITLE 41, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA EMPLOYMENT SECURITY LAW, BY ADDING
SECTION 41-27-410 SO AS TO PROVIDE FOR A DEFINITION OF EMPLOYMENT SECURITY
ADMINISTRATIVE CONTINGENCY ASSESSMENTS; TO AMEND SECTIONS 41-31-10, 41-31-40,
41-31-50, AS AMENDED, 41-31-60, AS AMENDED, 41-31-80, AS AMENDED, AND 41-31-670,
RELATING TO CERTAIN EMPLOYER CONTRIBUTIONS OR CONTRIBUTION RATES UNDER THE
EMPLOYMENT SECURITY LAW, SO AS TO REVISE THESE RATES; TO AMEND SECTION 41-31-150,
RELATING TO THE TREATMENT OF FRACTIONS OF A CENT UNDER THE EMPLOYMENT SECURITY
LAW; TO AMEND SECTION 41-31-360, RELATING TO ADJUSTMENTS AND REFUNDS; TO AMEND
SECTION 41-31-380, RELATING TO A LIEN FOR CONTRIBUTIONS, INTEREST, PENALTIES, AND
COSTS; TO AMEND SECTION 41-31-390, RELATING TO THE ISSUANCE OF WARRANTS OF
EXECUTION FOR COLLECTION OF CONTRIBUTIONS; AND TO AMEND SECTION 41-31-400,
RELATING TO THE PROCEDURES UNDER EXECUTION, SO AS TO INCLUDE CERTAIN REFERENCES
TO EMPLOYMENT SECURITY ADMINISTRATIVE CONTINGENCY ASSESSMENTS WITHIN THESE
SECTIONS; TO AMEND CHAPTER 31 OF TITLE 41 OF THE 1976 CODE, RELATING TO
CONTRIBUTIONS AND PAYMENTS UNDER THE EMPLOYMENT SECURITY LAW BY ADDING ARTICLE
9 SO AS TO PROVIDE FOR THE PAYMENT AND COLLECTION OF EMPLOYMENT SECURITY
ADMINISTRATIVE CONTINGENCY ASSESSMENTS; AND TO AMEND ARTICLE 5, CHAPTER 33 OF
TITLE 41 OF THE 1976 CODE, RELATING TO THE EMPLOYMENT SECURITY SPECIAL
ADMINISTRATION FUND BY ADDING SECTION 41-33-710 SO AS TO ESTABLISH THE EMPLOYMENT
SECURITY ADMINISTRATIVE CONTINGENCY FUND AND PROVIDE FOR THE MANNER IN WHICH THE
MONEY IN THIS FUND MUST BE DEPOSITED, ADMINISTERED, AND DISBURSED.
Be it enacted by the General Assembly of the State of South Carolina:
Assessment
SECTION 1. Article 3, Chapter 27 of Title 41 is amended by adding:
"Section 41-27-410. Effective January 1, 1986, the employment security
administrative contingency assessment is an assessment of six one-hundredths of
one percent to be assessed upon the wages as defined in Section 41-27-380(2) of
all employers except those who have either elected to make payments in lieu of
contributions as defined in Section 41-31-620 or are liable for the payment of
contributions as defined in Section 41-31-620 or are liable for the payment of
contributions and are classified as a state agency or any political subdivision
or any instrumentality of the political subdivision as defined in Section
41-27-230(2) or have been assigned a contribution rate of five and four-tenths
percent."
Contributions
SECTION 2. Section 41-31-10 of the 1976 Code is amended to read:
"Section 41-31-10. Each employer shall pay contributions equal to five
and four-tenths percent of wages paid by him during each year except as may be
otherwise provided in Chapters 27 through 41 of this title."
Rate
SECTION 3. Section 41-31-40 of the 1976 Code is amended to read:
"Section 41-31-40. Each employer's rate for the twelve months commencing
January first of any calendar year is determined in accordance with Section
41-31-50 on the basis of his record up to July first of the preceding calendar
year, but no employer's rate is less than two and sixty-four hundredths percent
until there have been twenty-four consecutive months of coverage after first
becoming liable for contributions under Chapters 27 through 41 of this title.
Each employer who completes twenty-four consecutive calendar months of coverage
after first becoming liable for contributions under the chapters during the
current calendar year shall have a rate computed at the beginning of the calendar
quarter following the calendar quarter during which twenty-four consecutive
months of coverage are completed based on the employer's experience through the
preceding quarter. The rate computed in accordance with Section 41-31-50 is
applicable for the remainder of the current calendar year. For those employers
completing the twenty-four months of coverage during the current calendar year,
a new rate for the succeeding calendar year is determined on the basis of their
records through December thirty-first of the current year."
Rate computation
SECTION 4. Section 41-31-50 of the 1976 Code, as last amended by Act 154 of
1985, is further amended to read:
"Section 41-31-50. Each employer eligible for a rate computation shall
have his rate determined in the following manner:
(1) If, on the computation date as of which an employer's rate is to be
computed, as provided in Section 41-31-40, the total of all his contributions
paid on his own behalf for all past periods exceeds the total benefits charged
to his account for all the periods his contribution rate for the period specified
in Section 41-31-40 is, except for the provisions of Section 41-31-80, as
follows:
(a) With respect to the calendar year 1973:
(i) Two and thirty-five hundredths percent, if the excess equals or
exceeds five percent but is less than six percent of his most recent annual
payroll;
(ii) Two percent, if the excess equals or exceeds six percent but is less
than seven percent of his most recent annual payroll;
(iii) One and sixty-five hundredths percent, if the excess equals or
exceeds seven percent but is less than eight percent of his most recent annual
payroll;
(iv) One and thirty hundredths percent, if the excess equals or exceeds
eight percent but is less than nine percent of his most recent annual payroll;
(v) Ninety-five hundredths of one percent, if the excess equals or exceeds
nine percent but is less than ten percent of his most recent annual payroll;
(vi) Six tenths of one percent, if the excess equals or exceeds ten
percent but is less than eleven percent of his most recent annual payroll;
(vii) Twenty-five hundredths of one percent, if the excess equals or
exceeds eleven percent of his most recent annual payroll.
(b) With respect to calendar years 1974 through 1985:
(i) Two and thirty-five hundredths percent, if the excess equals or
exceeds three percent but is less than four percent of his most recent annual
payroll;
(ii) Two percent, if the excess equals or exceeds four percent but is less
than five percent of his most recent annual payroll;
(iii) One and sixty-five hundredths
percent, if the excess equals or exceeds five percent but is less than six
percent of his most recent annual payroll;
(iv) One and thirty hundredths percent, if the excess equals or exceeds
six percent but is less than seven percent of his most recent annual payroll;
(v) Ninety-five hundredths of one percent, if the excess equals or exceeds
seven percent but is less than eight percent of his most recent annual payroll;
(vi) Six tenths of one percent, if the excess equals or exceeds eight
percent but is less than nine percent of his most recent annual payroll;
(vii) Twenty-five hundredths of one percent, if the excess equals or
exceeds nine percent of his most recent annual payroll.
(c) With respect to any calendar year commencing with the calendar year
1986:
(i) Two and twenty-nine hundredths percent, if the excess equals or
exceeds three percent but is less than four percent of his most recent annual
payroll;
(ii) One and ninety-four hundredths percent, if the excess equals or
exceeds four percent but is less than five percent of his most recent annual
payroll;
(iii) One and fifty-nine hundredths percent, if the excess equals or
exceeds five percent but is less than six percent of his most recent annual
payroll;
(iv) One and twenty-four hundredths percent, if the excess equals or
exceeds six percent but is less than seven percent of his most recent annual
payroll;
(v) Eighty-nine hundredths of one percent, if the excess equals or exceeds
seven percent but is less than eight percent of his most recent annual payroll;
(vi) Fifty-four hundredths of one percent if the excess equals or exceeds
eight percent but is less than nine percent of his most recent annual payroll;
(vii) Nineteen hundredths of one percent, if the excess equals or exceeds
nine percent of his most recent annual payroll.
(2) If, on the computation date as of which an employer's rate is to be
computed, as provided in Section 41-31-40, the total of all his contributions
paid on his own behalf for all past periods is less than the total benefits
charged to his account for all the periods his contribution rate for the period
specified in Section 41-31-40 is as follows:
(a) With respect to any calendar year prior to the calendar year 1985:
(i) Three and five hundredths percent, if the deficit equals five percent
but is less than ten percent of his most recent annual payroll;
(ii) Three and forty hundredths percent, if the deficit equals ten percent
but is less than fifteen percent of his most recent annual payroll;
(iii) Three and seventy-five hundredths percent, if the deficit equals
fifteen percent but is less than twenty percent of his most recent annual
payroll;
(iv) Four and ten hundredths percent, if the deficit equals or exceeds
twenty percent of his most recent annual payroll;
(b) With respect to the calendar year 1985:
(i) Three and five hundredths percent, if the deficit equals five percent
but is less than ten percent of his most recent annual payroll;
(ii) Three and forty hundredths percent, if the deficit equals ten percent
but is less than fifteen percent of his most recent annual payroll;
(iii) Three and seventy-five hundredths percent, if the deficit equals
fifteen percent but is less than twenty percent of his most recent annual
payroll;
(iv) Four and ten hundredths percent, if the deficit equals twenty percent
but is less than twenty-five percent of his most recent annual payroll;
(v) Four and forty-five hundredths percent, if the deficit equals
twenty-five percent but is less than thirty percent of his most recent annual
payroll;
(vi) Four and eighty hundredths percent, if the deficit equals thirty
percent but is less than thirty-five percent of his most recent annual payroll;
(vii) Five and fifteen hundredths percent, if the deficit equals
thirty-five percent but is less than forty percent of his most recent annual
payroll;
(viii) Five and forty hundredths percent, if the deficit equals or exceeds
forty percent of his most recent annual payroll.
(c) With respect to any calendar year commencing with the calendar year
1986:
(i) Two and ninety-nine hundredths percent if the deficit equals or
exceeds five percent but is less than ten percent of his most recent annual
payroll;
(ii) Three and thirty-four hundredths percent if the deficit equals or
exceeds ten percent but is less than fifteen percent of his most recent annual
payroll;
(iii) Three and sixty-nine hundredths percent if the deficit equals or
exceeds fifteen percent but is less than twenty percent of his most recent annual
payroll;
(iv) Four and four hundredths percent if the deficit equals or exceeds
twenty percent but is less than twenty-five percent of his most recent annual
payroll;
(v) Four and thirty-nine hundredths percent if the deficit equals or
exceeds twenty-five percent but is less than thirty percent of his most recent
annual payroll;
(vi) Four and seventy-four hundredths percent if the deficit equals or
exceeds thirty percent but is less than thirty-five percent of his most recent
annual payroll;
(vii) Five and nine hundredths percent if the deficit equals or exceeds
thirty-five percent but is less than forty percent of his most recent annual
payroll;
(viii) Five and forty hundredths percent, if the deficit equals or exceeds
forty percent of his most recent annual payroll.
(3) In determining an employer's contribution rate, contributions for the
quarter immediately preceding the computation date are considered as paid before
the computation date if they are paid by the employer on or before the end of the
month following the quarter or within any period of grace allowed by the
Commission for payment of the quarter's contribution.
(4) For calendar year 1986 and any subsequent calendar year, voluntary
payments are not permitted for the purpose of obtaining a lower rate of required
contributions."
Computation date
SECTION 5. Section 41-31-60 of the 1976 Code, as amended by Act 154 of 1985,
is further amended to read:
"Section 41-31-60. (1) If on the computation date upon which an
employer's rate is to be computed as provided in Section 41-31-40 there is a
delinquent report, a rate of five and four-tenths percent must be assigned until
the next computation date. The assigned rate is applicable for the entire
period for which the computation is made even though the delinquent report is
subsequently received.
(2) No employer is permitted to pay his unemployment compensation tax at a
reduced rate for any quarter when a tax execution issued in accordance with
Section 41-31-390 with respect to delinquent unemployment compensation tax for
a previous quarter is unpaid and outstanding against the employer. If on the
computation date upon which an employer's rate is computed as provided in Section
41-31-40 there is an outstanding tax execution a rate of two and sixty-four
hundredths percent must be assigned for the period to which the computation
applies. If the rate for the prior year or the computed rate for the computation
period is greater than two and sixty-four hundredths percent, the highest rate
must be assigned until the next computation date or until such time as any
outstanding tax execution has been paid."
Statewide reserve ratio
SECTION 6. Section 41-31-80 of the 1976 Code, as last amended by Act 108 of
1981, is further amended to read:
"Section 41-31-80. A statewide reserve ratio must be computed once each
year by adding to the total unemployment compensation fund on June thirtieth all
contributions and interest received on or before July thirty-first and dividing
the result so obtained by the sum of the total wages reported by contributing
employers on their contribution reports received by the commission during the
twelve-month period ending September thirtieth of the current year. Any amount
credited to the state's account under Section 903 of the Social Security Act, as
amended, which has been appropriated for expenses of administration, whether or
not withdrawn from the trust fund, is excluded from the unemployment fund balance
in computing the statewide reserve ratio. Any amount due and payable as a
payment in lieu of contributions by a nonprofit organization as provided in
Section 41-31-630, the State of South Carolina, or the Federal Government must
be added to the total unemployment compensation fund for the purposes of the
computations required by this section. When the statewide reserve ratio computed
during any calendar year equals or exceeds three and one-half percent,
contribution rates applicable to the following calendar year are computed in
accordance with Sections 41-31-40 and 41-31-50. When the statewide reserve ratio
computed during any calendar year is less than three and one-half percent, all
contribution rates applicable to the following calendar year are increased over
those computed in accordance with Sections 41-31-40 and 41-31-50 as follows:
(1) Thirty-five hundredths of one percent, if the statewide reserve ratio
equals or exceeds three percent but is less than three and one-half percent;
(2) Seven-tenths of one percent, if the statewide reserve ratio equals or
exceeds two and one-half percent but is less than three percent; and
(3) One and five hundredths percent, if the statewide reserve ratio is less
than two and one-half percent.
This section does not apply to any employer whose contribution rate is more
than two and sixty-four hundredths percent, and no employer's rate shall exceed
two and sixty-four hundredths percent by reason of the application of this
section."
Payment of contribution or assessment
SECTION 7. Section 41-31-150 of the 1976 Code is amended to read:
"Section 41-31-150. In the payment of any contributions or employment
security administrative contingency assessment a fractional part of a cent must
be disregarded unless it amounts to one-half cent or more, in which case it must
be increased to one cent."
Application for adjustment
SECTION 8. Section 41-31-360 of the 1976 Code is amended to read:
"Section 41-31-360. If, not later than four years after the date on which
any contributions or interest or employment security administrative contingency
assessments became due, an employer who has paid the contributions or interest
or employment security administrative contingency assessments shall make
application for an adjustment in connection with subsequent contribution or
employment security administrative contingency assessments payments or for a
refund because the adjustment cannot be made and the commission shall determine
that the contributions or interest or employment security administrative
contingency
assessments or any portion was erroneously collected, the commission shall make
an adjustment, without interest, in connection with subsequent contribution or
employment security administrative contingency assessments payments by him or,
if the adjustment cannot be made, shall refund the amount from the fund. For
like cause and within the same period an adjustment or refund may be made on the
commission's own initiative.
A refund or adjustment must be made in any case where the commission finds that
contributions or interest or employment security administrative contingency
assessments were erroneously paid by an employing unit to this State upon wages
earned by individuals in employment in another state. The refund or adjustment
must be made upon satisfactory proof to the commission that the payment of the
contributions or interest or employment security administrative contingency
assessments has been made to the other state."
Contributions, interest, etc. considered taxes
SECTION 9. Section 41-31-380 of the 1976 Code is amended to read:
"Section 41-31-380. The contributions, interest, penalties, employment
security administrative contingency assessments, and costs prescribed in this
chapter are considered taxes owing the State by the persons against whom they are
charged, and are a lien upon the real property or chattels of the person by whom
the contributions are due, only after the warrant described in Section 41-31-390
is indexed as prescribed in Section 41-31-400."
Defaulting employer
SECTION 10. Section 41-31-390 of the 1976 Code is amended to read:
"Section 41-31-390. If any employer defaults in any payment of
contributions, interest, penalties, or employment security administrative
contingency assessments the commission shall
notify the employer of the amount of contributions, interest, penalties, or
employment security administrative contingency assessments due. If the amount
is not paid within ten days thereafter the commission shall issue a warrant of
execution, directed to the sheriff or tax collector of any county of the State,
commanding him to levy upon and sell the real and personal property of the
employer found within his county for the payment of the amount, with interest,
and the cost of executing the warrant, to return the warrant to the commission
and to pay it the money collected."
Copy and execution to be filed
SECTION 11. Section 41-31-400 of the 1976 Code is amended to read:
"Section 41-31-400. Upon receipt of the execution the sheriff or tax
collector shall file with the clerk of court of his county a copy and thereupon
the clerk of court shall enter in his abstract of judgments the name of the
employer mentioned in the warrant and in the proper columns the amount of the
contributions, interest, penalties, and employment security administrative
contingency assessments and costs for which the warrant is issued and the date
and hour when the copy is filed and shall index the warrant upon the index of
judgments. The sheriff or tax collector shall proceed upon the warrant in all
respects and with like effect and in the same manner prescribed by law in respect
to executions issued against property upon judgments of a court of record and is
entitled to the same fees for service in executing the warrant to be collected
in the same manner."
Payment by nonprofit corporation
SECTION 12. Section 41-31-670 of the 1976 Code is amended to read:
"Section 41-31-670. (1) Any nonprofit organizations that prior to
January 1, 1969, paid contributions required by Section 41-31-10 and, pursuant
to Section 41-31-620, elects within thirty days after January 1, 1972, to make
payments in lieu of contributions, is not required to make any such payment on
account of any regular or extended benefits paid, on the basis of wages paid by
the organization to individuals for weeks of unemployment which begin on or after
the effective date of the election until the total amount of the benefits equals
the amount of the positive balance in the experience rating account of the
organization.
(2) Any nonprofit organization which has elected to become liable for payments
in lieu of contributions under the provisions of Sections 41-31-620 and 41-31-630
and thereafter terminates the election shall become an employer liable for the
payments of contributions upon the effective date of the termination but no such
employer's rate thereafter may be less than two and sixty-four hundredths percent
until there have been twenty-four consecutive calendar months of coverage after
so becoming liable for the payment of contributions. If the employer has been
an employer liable for the payment of contributions prior to election to become
liable for payments in lieu of contributions the balance in the experience rating
account of the employer as of the termination date of the election to become
liable for payments in lieu of contributions is transferred to the new experience
rating account then established for the employer."
Payment and collection of assessments
SECTION 13. Chapter 31 of Title 41 of the 1976 Code is amended by adding:
" Article 9
Payment and Collection of Employment Security
Administrative Contingency Assessments
Section 41-31-910. Employment security administrative contingency
assessments must accrue and become payable by each employer who is subject to the
assessments as defined in Section 41-27-410 for each calendar year in which he
is subject to Chapters 27 through 41 of this title with respect to wages for
employment. The assessments are due and payable by each subject employer to the
commission for the employment security administrative contingency fund and are
not deductible, in whole or in part, from the wages of individuals in the
employer's employ. No determination and assessments may be instituted more than
four years after the last day of the month immediately following the calendar
quarter for which the assessments were payable. This proviso does not apply to
any employer if the commission finds that the employer wilfully failed to report
when required to do so by the provisions of this section or the rules of the
commission, or has knowingly made a false statement or has intentionally failed
to disclose a material fact.
Section 41-31-920. Employment security administrative contingency
assessments must be reported on the employer's quarterly contribution report
according to the same rules as the commission may prescribe for contributions.
Section 41-31-930. If any employer's amount of employment security
administrative contingency assessment which is due and payable, as prescribed by
the commission, is unpaid ten days following the date on which an assessment or
debit memorandum has been issued therefor, a penalty of ten dollars may be
assessed."
Special fund created
SECTION 14. Article 5, Chapter 33 of Title 41 of the 1976 Code is amended by
adding:
"Section 41-33-710. (a) There is created in the state treasury a
special fund to be known as the employment security administrative contingency
fund, which consists of all assessments collected pursuant to Section 41-27-410.
All money in the employment security administrative contingency fund must be
deposited, administered, and disbursed in accordance with the provisions of
Section 41-33-420 applicable to the employment security administration fund.
(b) All monies which are deposited in the employment security administrative
contingency fund are appropriate and made available to the commission. All
monies in the fund must be expended to:
(1) assist with the reemployment of unemployed workers using the most
efficient and effective means of service delivery;
(2) undertake any program or activity which furthers the goal of the
Employment Security Commission as provided for in Chapter 42 of this title;
(3) supplement basic employment security services, with special job search
and claimant placement assistance designed to assist unemployment insurance
claimants to obtain employment;
(4) provide employment services, such as recruitment, screening, and
referral of qualified workers, to agricultural areas where those services have
in the past contributed to positive economic conditions for the agricultural
industry;
(5) provide otherwise unobtainable information and analysis to the
legislature and program managers about issues related to employment and
unemployment.
Any balances in the fund do not lapse at any time, but are continuously
available to the commission for expenditure consistent with Chapter 42 of this
title. The commission shall issue its requisition approved by the chairman or
any designated member, officer, or agent for the purpose set forth herein to the
comptroller general who shall draw his warrant in the usual form provided by law
on the State Treasurer, who shall pay it by check on the employment security
administrative contingency fund."
Time effective
SECTION 15. This act shall take effect upon approval by the Governor. |