S*546 Session 106 (1985-1986)
S*0546(Rat #0237, Act #0154 of 1985) General Bill, By
Senate Labor, Commerce and Industry
A Bill to amend Sections 12-7-2240, 41-31-50, 41-31-60, 41-35-120, and
41-41-40, all as amended, and 41-31-350 and 41-31-370, Code of Laws of South
Carolina, 1976, relating to tax refunds to taxpayers by the South Carolina Tax
Commission, to employment security contributions and payments, benefits, and
claims, so as to provide for determining the employer's contribution rate,
provide a penalty for an unemployment compensation tax execution, provide that
an employer suffer a penalty of ten percent of the contributions due but not
less than twenty-five dollars nor more than one thousand dollars for failure
to file a report or to pay contributions, and to provide for collection of
delinquent contributions.-amended title
04/18/85 Senate Introduced, read first time, placed on calendar
without reference SJ-1595
04/23/85 Senate Read second time SJ-1734
04/24/85 Senate Read third time and sent to House SJ-1737
04/24/85 House Introduced and read first time HJ-2682
04/24/85 House Referred to Committee on Labor, Commerce and
Industry HJ-2682
05/23/85 House Committee report: Favorable with amendment Labor,
Commerce and Industry HJ-3450
05/29/85 House Objection by Rep. J. Bradley, Aydlette & Kirsh HJ-360
05/30/85 House Amended HJ-3668
05/30/85 House Read second time HJ-3668
05/31/85 House Read third time HJ-3751
05/31/85 House Returned HJ-3751
06/04/85 Senate Concurred in House amendment and enrolled SJ-2762
06/18/85 Ratified R 237
06/20/85 Signed By Governor
06/20/85 Effective date 06/20/85
06/20/85 Act No. 154
07/10/85 Copies available
(A154, R237, S546)
AN ACT TO AMEND SECTIONS 12-7-2240, 41-31-50, 41-31-60, 41-35-120, AND
41-41-40, ALL AS AMENDED, AND 41-31-350 AND 41-31-370, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO TAX REFUNDS TO TAXPAYERS BY THE SOUTH CAROLINA TAX
COMMISSION AND TO EMPLOYMENT SECURITY CONTRIBUTIONS AND PAYMENTS, BENEFITS, AND
CLAIMS, SO AS TO PROVIDE FOR A REPAYMENT BY THE TAX COMMISSION TO THE EMPLOYMENT
SECURITY COMMISSION FOR OVERPAYMENT TO A RECIPIENT BY DEDUCTING FROM THE TAX
REFUND DUE THE RECIPIENT-TAXPAYER, PROVIDE FOR DETERMINING THE EMPLOYER'S
CONTRIBUTION RATE, PROVIDE A PENALTY FOR AN UNEMPLOYMENT COMPENSATION TAX
EXECUTION, PROVIDE THAT AN EMPLOYER SUFFER A PENALTY OF TEN PERCENT OF THE
CONTRIBUTIONS DUE BUT NOT LESS THAN TWENTY-FIVE DOLLARS NOR MORE THAN ONE
THOUSAND DOLLARS FOR FAILURE TO FILE A REPORT OR TO PAY CONTRIBUTIONS, AND TO
PROVIDE FOR COLLECTION OF DELINQUENT CONTRIBUTIONS.
Be it enacted by the General Assembly of the State of South Carolina:
Refund
SECTION 1. Section 12-7-2240 of the 1976 Code, as last amended by Act 346 of
1984, is further amended by adding:
"(C) Upon notification from the Employment Security Commission that the
taxpayer is delinquent in repaying an overpayment of unemployment compensation
benefits, the commission shall determine whether a refund is due to the debtor
and shall transfer to the Employment Security Commission an amount equal to the
refund owed not to exceed the amount of overpayment of unemployment compensation
benefits plus the administrative expense of the commission. From this amount the
Employment Security Commission will reimburse the commission for expenses
incurred in administering this program.
At the time of the transfer of funds the commission shall send written
notification to the taxpayer that the transfer has been made. In the case of a
joint return the notice shall state the name of the taxpayer named in the return,
if any, against whom no debt is claimed, the fact that a debt is not claimed
against the taxpayer, the fact that the taxpayer is entitled to receive a refund
if it is due him regardless of the debt asserted against his spouse, and that in
order to obtain a refund due him the taxpayer shall apply, in writing, for a
hearing with the Employment Security Commission within thirty days of the date
of the mailing of the notice.
In instances where subsections (B) and (C) of this section are applicable to
the same individual, subsection (B) will have priority."
Contribution rate
SECTION 2. Items (4) and (5) of Section 41-31-50 of the 1976 Code, as last
amended by Act 406 of 1984, are further amended to read:
"(4) In determining an employer's contribution rate, contributions for
the quarter immediately preceding the computation date must be 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.
(5) For calendar year 1986 and any subsequent calendar year, voluntary
payments must not be permitted for the purpose of obtaining a lower rate of
required contributions."
Rate
SECTION 3. Section 41-31-60 of the 1976 Code, as last amended by Act 62 of 1983,
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 two and seven-tenths percent must be assigned for the next
calendar year. However, if the rate for the prior year or the computed rate for
the computation period is greater than two and seven-tenths percent, the highest
rate must be assigned until the next computation date. The assigned rate is
applicable for the entire computation period 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 seven-tenths
percent must be assigned for the computation period. If the rate for the prior
year or the computed rate for the computation period is greater than two and
seven-tenths percent, the highest rate must be assigned until the next
computation date or until such time as any outstanding tax execution has been
paid."
Penalty
SECTION 4. Section 41-31-350 of the 1976 Code is amended to read:
"Section 41-31-350. If any employer fails to file any report as required of
him under Chapters 27 through 41 of this title with respect to wages or
contributions within fifteen days from the date upon which the Commission has
mailed to him a demand for the report, the Commission shall assess upon the
employer a penalty of ten percent of the contributions due but no less than
twenty-five nor more than one thousand dollars which is in addition to the
contributions payable with respect to the report."
Rate of interest
SECTION 5. Section 41-31-370 of the 1976 Code is amended to read:
"Section 41-31-370. (1) Contributions unpaid on the date on which they are
due and payable, as prescribed by the Commission, shall bear interest at the rate
of one percent for each month or fraction thereof for which they remain unpaid
but contributions as have accrued prior to the establishment of an employer's
liability shall bear interest at the rate of one half of one percent a month or
fraction thereof, to the date on which liability is established, unless it is
found by the Commission that the delay in the establishment of liability resulted
from wilful negligence of the employer, and shall bear interest at the rate of
one percent a month or fraction thereof for which they remain unpaid thereafter.
(2) If any employer's amount of contributions 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 percent
of the amount of contributions due and payable, not to exceed one thousand
dollars, must be paid in addition to any other interest or penalty which may be
applicable.
(3) The Commission may, for good cause, extend the time for the filing of
reports and the payment of contributions. Any person to whom the extension is
granted shall pay in addition to the contribution due, interest thereon at the
rate of one percent per month or fraction thereof from the due date of the
contribution to the date of payment."
Owner ineligible for benefits
SECTION 6. Section 41-35-120 of the 1976 Code, as last amended by Section 69,
Part II, of Act 512 of 1984, is further amended to read:
"Section 41-35-120. Any insured worker is ineligible for benefits for:
(1) Leaving work voluntarily.--If the Commission finds that he has left
voluntarily, without good cause, his most recent work prior to filing a request
for determination of insured status or a request for initiation of a claim series
within an established benefit year, with ineligibility beginning with the
effective date of the request and continuing until he has secured employment and
shows to the satisfaction of the Commission that he has performed services in
employment as defined by Chapters 27 through 41 of this Title and earned wages
for such services equal to at least eight times the weekly benefit amount of his
claim.
(2) Discharge for cause connected with the employment.--If the Commission
finds that he has been discharged for cause connected with his most recent work
prior to filing a request for determination of insured status or a request for
initiation of a claim series within an established benefit year, with
ineligibility beginning with the effective date of the request, and continuing
not less than five nor more than the next twenty-six weeks (in addition to the
waiting period) with a corresponding and mandatory reduction of the insured
worker's benefits to be calculated by multiplying his weekly benefit amount by
the number of weeks of his disqualification. The ineligibility period must be
determined by the Commission in each case according to the seriousness of the
cause for discharge. A charge of discharge for cause connected with the
employment may not be made for failure to meet production requirements unless the
failure is occasioned by wilful failure or neglect of duty. 'Cause connected
with the employment' as used herein shall require more than a failure in good
performance of the employee as the result of inability or incapacity.
(3) Failure to accept work.--(a) If the Commission finds that he has failed,
without good cause, (i) either to apply for available suitable work, when so
directed by the employment office or the Commission, (ii) to accept available
suitable work when offered to him by the employment office or an employer or
(iii) to return to his customary self-employment (if any) when so directed by the
Commission, the ineligibility begins with the week the failure occurred and
continues until he has secured employment and shows to the satisfaction of the
Commission that he has performed services in employment as defined in Chapters
27 through 41 of this title and earned wages for services equal to at least eight
times his weekly benefit amount of his claim.
(b) In determining whether or not any work is suitable for an individual,
the Commission shall consider, based on a standard of reasonableness as it
relates to the particular individual concerned, the degree of risk involved to
his health, safety, and morals, his physical fitness and prior training, his
experience and prior earnings, his length of unemployment and prospects for
securing local work in his customary occupation and the distance of the available
work from his residence.
(c) Notwithstanding any other provisions of Chapters 27 through 41 of this
title, no work is considered suitable and benefits may not be denied under such
chapters to any otherwise eligible individual for refusing to accept new work
under any of the following conditions: (i) If the position offered is vacant due
directly to a strike, lockout, or other labor dispute, (ii) if the wages, hours,
or other conditions of the work offered are substantially less favorable to the
individual than those prevailing for similar work in the locality, or (iii) if
as a condition of being employed the individual would be required to join a
company union or to resign from or refrain from joining any bona fide labor
organization.
(d) Notwithstanding any other provisions of Chapters 27 through 41 of this
title, no otherwise eligible individual may be denied benefits for any week for
failure to apply for, or refusal to accept, suitable work because he is in
training with the approval of the Commission.
(e) Notwithstanding any other provision of this chapter, no otherwise
eligible individual may be denied benefits for any week because he is in training
approved under Section 236(a)(1) of the Trade Act of 1974, nor may the individual
be denied benefits by reason of leaving work to enter training, so long as the
work left is not suitable employment, or because of the application to any week
in training of provisions in this law (or any applicable federal unemployment
compensation law), relating to availability for work, active search for work, or
refusal to accept work.
For purposes of this subitem, 'suitable employment' means, with respect to an
individual, work of a substantially equal or higher skill level than the
individual's past adversely affected employment (as defined for purposes of the
Trade Act of 1974), and wages for the work at not less than eighty percent of the
individual's average weekly wage as determined for the purposes of the Trade Act
of 1974.
(4) Labor dispute.--For any week in which the Commission finds that his total
or partial unemployment is directly due to a labor dispute in active progress in
the factory, establishment, or other premises at which he was last employed.
This paragraph does not apply if it is shown to the satisfaction of the
Commission that:
(a) He is not participating in, financing, or directly interested in the
labor dispute;
(b) He does not belong to a grade or class of workers of which, immediately
before he became unemployed by reason of the dispute, there were members employed
at the premises at which the dispute exists, any of whom are participating in or
directly interested in the dispute.
If in any case separate branches of work, which are commonly conducted as
separate businesses in separate premises, are conducted in separate departments
of the same premises, each department for the purpose of this item (4) is
considered to be a separate factory, establishment, or other premises.
(5) Receiving benefits elsewhere.--For any week in which or a part of which he
has received or is seeking unemployment benefits under an unemployment
compensation law of another state or of the United States. If the appropriate
agency of the other state or of the United States finally determines that he is
not entitled to unemployment benefits, this disqualification does not apply.
(6) Voluntary retirement.--If the Commission finds that he voluntarily retired
from his most recent work with the ineligibility beginning with the effective
date of his claim and continuing for the duration of his unemployment and until
the individual submits satisfactory evidence of having had new employment and of
having earned wages of not less than eight times his weekly benefit amount as
defined in Section 41-35-40. For the purpose of this section ' Most recent work'
means the work from which the individual retired regardless of any work
subsequent to his retirement in which he earned less than eight times his weekly
benefit amount."
Collection of overpayments
SECTION 7. Section 41-41-40 of the 1976 Code, as last amended by Act 108 of
1981, is further amended by adding at the end:
"The Commission may, at its discretion, attempt collection of overpayments
through the South Carolina Tax Commission in accordance with Section 12-7-2240.
If the overpayment is collectible in accordance with Section 12-7-2240, the
Commission shall add to the amount of the overpayment a collection fee of ten
dollars for each collection attempt."
Time effective
SECTION 8. This act shall take effect upon approval by the Governor. |