Tax Field Services · Labor to receive the full 5.4 percent credit on business federal unemployment...
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Tax Field Services
Transcript of Tax Field Services · Labor to receive the full 5.4 percent credit on business federal unemployment...
Tax Field Services
SCDEW UI DIVISIONPrimary functions are to determine employers who are liable to the state of South Carolina, to collect taxes and maintain records on those employers, and to administer the state and federal unemployment insurance benefit programs for South Carolina.
Governed under Title 41 in the SC Code of Laws
SCDEW UI DIVISIONPrimary functions are to determine employers who are liable to the state of South Carolina, to collect taxes and maintain records on those employers, and to administer the state and federal unemployment insurance benefit programs for South Carolina.
Governed under Title 41 in the SC Code of Laws
TAX DIVISIONTAX DIVISIONUnder the Unemployment Insurance (UI) program the TAX DIVISION operates;
Status Unit: Makes determinations on employer liability
Contribution Unit: Maintains employer payment file (UCE-101)
Wage Records Unit: Maintains individual wage item data (UCE-120)
Delinquency Unit: Collects outstanding debts owed to the Department
Experience Rating: Researches account activity and verifies tax rates
Field Service Department: Performs field investigations for the Unemployment Insurance Division and on-site audits for program integrity
Proprietorship: Single Owner>Files 1040…
Schedule C tax return>Owner, Spouse, & Children 18 or younger are
exempt from State Unemployment Tax Assessment (SUTA)
Partnership:
2 or more entities>May be any combo.: Individuals, Partnerships, Corporations, LLC.>Files 1065 tax return
Corporation:
2 types> C-Corporation…Files 1120 tax return> S-Corporation…Files 1120-S tax return
(everyone active is reported (officers, etc.)
Limited Liability Company (LLC):>Must register & be approved by SC Secretary of State>Could be proprietorship, partnership, or corporation
TYPES OF LEGAL ENTITIES
General Employers:At least 1 employee for 20 or more calendar weeks;Paid $1,500.00 or more in wages in any calendar quarter;Acquired another liable business;Established liability in another state
Agricultural Employer:10 or more employees in each of 20 different weeks;Paid $20,000.00 or more in wages in any calendar quarter
Domestic Employers:Paid $1,000.00 or more wages in a calendar quarter
Non-profit organizations:4 or more employees for 20 calendar weeksMust furnish 501(c)(3) letter from the Internal Revenue Service
LIABILITY DETERMINATION
Form UCE-151:
Employer Status Report
*All employers can complete this report on line, fax, or mail the report to SCDEW.
*all employers will be assigned an account number.
*all employers will be mailed a reporting packet.
LIABILITY DETERMINATION PROCESS / STEPS
SUTA taxes are paid quarterly on the gross wages paid to each employee up to the annual taxable wage base.
Taxable Wage Bases
Year Taxable Wage BasePrior to 2011 $ 7,0001/1/2011 $10,0001/1/2012 $12,0001/1/2015 $14,000
South Carolina has received conditional approval from the U.S. Secretary of Labor to receive the full 5.4 percent credit on business federal unemployment taxes (FUTA) for calendar year 2011. The conditional approval is granted, in part, on South Carolina not borrowing funds to cover benefit payments through January 31, 2012. The U. S. Secretary of Labor will officially certify South Carolina’s FUTA credit reduction status after January 31, 2012. More information on the credit reduction will be available on IRS form 940. Please continue to check our website for updates.PLEASE NOTE: The taxable wage base for 2013 is $12,000.Each employer is assigned to a tax class based on their own benefit ratio. The benefit ratio will include the combined experience of all predecessor account activity (acquisitions, mergers, joint, and related accounts) that occurred over the previous nine years. The benefit ratio will be calculated as the sum of benefit charges over the previous eight years divided by the sum of taxable wages over the same time period. Employers will be assessed an interest surcharge to cover the costs associated with borrowing from the federal government to make benefit payments.Employers with the lowest benefit ratios will be assigned to tax class 1. Employers with the highest benefit ratios will be assigned to tax class 20. Complete information about how your individual benefit ratio was computed will be included in your annual rate.Employers will continue to be charged a contingency assessment of 0.06%. These funds are used by the Employment and Training division for reemployment services; the assessment has been authorized by the South Carolina state legislature since 1986.
File online via SCBOS or SCDEW
Report Filing DeadlinesQuarter Ending Report Due Date
March 31 April 30
June 30 July 31
September 30 October 31
December 31 January 31
www.scbos.sc.gov
www.dew.sc.gov
Fax: 803-737-2547
Email: [email protected]
South Carolina Department of Employment and WorkforceAttn: Employer Status UnitP.O. Box 995Columbia, SC 29202
Employer Registration
20 Tax Classes
Rates based on trust fund usage and trust fund Indebtedness
New Employer:
Assigned to Tax Class 12Rate based on experience after 12 months of accomplished liabilityComputed as of 6/30 for most employers
Employer Rate Assignment
Base Rate + Contingency/SurchargeExpected Benefit Payment Contingency AssessmentLoan Principal Payments Loan Interest Payment
All filings must be made quarterly
Once determined liable –
employers must file even if zero wages
Effective 1/1/2012 –
electronic filing is strongly encouraged
Manual data entryCD
File upload Electronic file transfer
www.scbos.sc.gov
–
single filers
www.dew.sc.gov
–
multiple filers (third party agents)
Employer Filings
1-866-831-1726
Zero report filers
1-803-737-3080, option 3, 0
Request a filing form if unable to file electronicallyMust request a quarterly report each quarter if unable to file
electronically
Employer Filings
Rates are determined by trust fund usage
Plan your employee costs wiselyHire strategicallyConsider short term vs. long term staffing needsLayoffs will impact your SUTA rateTerminations may impact your SUTA rateRespond to all information requests timelyReview your quarterly charge statements promptly
Managing Your Account
Through SCBOS employers may maintain their account history
Quarterly Contribution and Wage Report Filings (UCE-101/120)
Employer Separation Requests (Net-101)
Temporary Layoff Filings (UCB-114)
Respond to benefit wage audit requests
Online Account Management
Tips to keep employer rates low
File quarterly contribution and wage reports timely
Report new hires to the State Directory of New Hireswww.scnewhire.com
Report suspected employer and worker fraudhttp://dew.sc.gov/emp-content-ui-fraud.asp
Respond to all information requestsEmployee separationsWorker wage auditsEmployer auditsDocument verifications
Fraud Detection and Prevention
Must make records available for inspection
Must provide written notification to the Department within 30 calendar days of any changes regarding ownership or legal entity status
Must respond to the Department within the required time frames to ensure your rights to appeal or review determinations affecting your account are protected
Employer Responsibilities
Protect the unemployment insurance trust fund
Assist workers with obtaining employment, re-employment, and training
Make determinations on entitlement to receive unemployment compensation based upon SCDEW laws and regulations
Make determinations on employer liability under the South Carolina Code of Laws and Federal Laws
Make determinations on employer – employee relationships under the South Carolina Code of Laws and Federal Laws
SCDEW Responsibilities
The factors used to determine employer-employee relationships may cause SCDEW, SCDOR, and the IRS to reach different conclusions which could result in different tax treatments for the employer by each agency.
Employers should note that each regulatory authority has its own
criteria for determining whether an employer-employee relationship exists given the information that is furnished to them to make a
decision. Though the rulings may differ between the regulatory authorities, employers are advised that they are required to follow the ruling and the consequential tax treatment of each regulatory agency for reporting purposes even if the rulings issued by the agencies differ.
N E W S F L A S H
The Audit Program's primary objective is to ensure state unemployment insurance law tax compliancy by verifying correct taxes due; obtaining proper contribution and wage reports; assuring liable employers operate bona fide businesses; and assessing employers’
financial abilities to pay delinquent assessments.
Audits examine the treatment of workers and provide a basis for making determinations on the appropriate treatment of workers (i.e., employee, independent contractor).
Audits verify if wages were reported accurately and taxes were assessed at the correct taxable wage base.
Audits are used to determine an employer’s financial ability to meet UI tax obligations.
Audits helps employers to obtain a greater understanding of unemployment insurance law requirements by explaining responsibilities/legal requirements under the SC Code of Laws and federal laws.
A U D I T P R O G R A M
http://www.dew.sc.govFor questions about account registration:[email protected]
For questions about employer rate assignment: [email protected]
For questions about quarterly filings through SCBOS or SCDEW:[email protected]
For questions about unemployment claims filing:[email protected]
For questions about benefit charges:[email protected]
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