South Carolina S 688: DEW UI Tax Code

Bill Text

2025-2026 Bill 688 Text of Previous Version (May. 14, 2026) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 688

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken

Indicates New Matter

Conference Report Adopted - Not Printed

May 14, 2026

S. 688

Introduced 
by Senators Massey and Kimbrell 

S. Printed 5/14/26--S.

Read the first time January 13, 2026

________

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING 
SECTION 41-31-5, RELATING TO CONTRIBUTIONS AND PAYMENTS TO THE UNEMPLOYMENT 
TRUST FUND DEFINITIONS, SO AS TO CHANGE THE LOOKBACK PERIOD FOR THE BENEFIT 
RATIO; BY AMENDING SECTION 41-31-45, RELATING TO DEBT STATUS ESTIMATES, SO AS 
TO PROVIDE FOR A SOLVENCY TARGET FOR THE FUND; BY AMENDING SECTION 41-31-60, 
RELATING TO THE TAX RATE WHEN A DELINQUENT REPORT IS RECEIVED, SO AS TO CHANGE 
THE PENALTY FOR AN OUTSTANDING LIEN; BY AMENDING SECTION 41 31 350, RELATING TO 
THE PENALTY FOR FAILURE TO FILE A REPORT, SO AS TO REMOVE THE CAP ON THE 
PENALTY FOR FAILING TO FILE A REPORT; AND BY AMENDING SECTION 41-31-370, 
RELATING TO INTEREST ON UNPAID CONTRIBUTIONS, SO AS TO REMOVE THE CAP ON THE 
PENALTY FOR FAILURE TO PAY CONTRIBUTIONS; BY AMENDING SECTION 12-37-220, 
RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO EXEMPT THE FIRST TEN THOUSAND 
DOLLARS OF NET DEPRECIATED VALUE OF BUSINESS PERSONAL PROPERTY OWNED BY A SMALL 
BUSINESS; BY AMENDING SECTION 12-37-900, RELATING TO PROPERTY TAX RETURNS, SO 
AS TO PROVIDE THAT A TAXPAYER IS NOT REQUIRED TO RETURN BUSINESS PERSONAL 
PROPERTY FOR TAXATION IF THE TAXPAYER HAS LESS THAN TEN THOUSAND DOLLARS OF NET 
DEPRECIATED VALUE OF BUSINESS PERSONAL PROPERTY; BY ADDING SECTION 12 37 980 SO 
AS TO REQUIRE THAT ALL BUSINESS PERSONAL PROPERTY REQUIRED TO BE RETURNED FOR 
TAXATION TO BE RETURNED TO THE DEPARTMENT OF REVENUE; AND BY AMENDING SECTION 
12 20 50, RELATING TO THE LICENSE TAX ON CORPORATIONS, SO AS TO PROVIDE THAT, 
UNDER CERTAIN CIRCUMSTANCES, THE FEE DOES NOT APPLY TO ANY PORTION OF THE FIRST 
FIFTY MILLION DOLLARS OF CERTAIN CAPITAL STOCK AND PAID-IN OR CAPITAL SURPLUS.

Be it enacted by the General Assembly of the State of 
South Carolina:

SECTION 1. Section 41-31-5 of the S.C. Code is amended to read:

 Section 
41-31-5. As used in this chapter:

 (1) 
"Benefit ratio" means:

 (a) 
for the period of January 1, 2011, through December 31, 2013, the number 
calculated by dividing the sum of all benefits charged to an employer during 
the forty calendar quarters immediately preceding the calculation date by the 
sum of the employer's taxable payroll for the same period. If fewer than forty 
but more than one calendar quarter of data are available, the data from those 
available calendar quarters shall be used in the calculation. The benefit ratio 
must be calculated annually using data for quarters filed through June 
thirtieth of the current year to the sixth decimal place;

 (b) 
from January 1, 2014, through tax year 2026, the 
number calculated by dividing the sum of all benefits charged to an employer 
during the twelve calendar quarters immediately preceding the calculation date 
by the sum of the employer's taxable payroll for the same period. If fewer than 
twelve but more than one calendar quarters of data are available, the data from 
those available calendar quarters shall be used in the calculation. The benefit 
ratio must be calculated annually using data for quarters filed through June 
thirtieth of the current year to the sixth decimal place.;

 (c) For tax year 2027, the number 
calculated by dividing the sum of all benefits charged to an employer during 
the sixteen calendar quarters immediately preceding the calculation date by the 
sum

 of the employer's taxable payroll for the same period. If fewer 
than sixteen but more than one calendar 

quarters of data are available, then the data from those 
available calendar quarters shall be used in the calculation. The benefit ratio 
must be calculated annually using data for quarters filed through June 
thirtieth of the current year to the sixth decimal place;

 (d) Beginning in tax year 2028, the 
number calculated by dividing the sum of all benefits charged to an employer 
during the twenty calendar quarters immediately preceding the calculation date 
by the sum of the employer's taxable payroll for the same period. If fewer than 
twenty but more than one calendar quarters of data are available, then the data 
from those available calendar quarters shall be used in the calculation. The 
benefit ratio must be calculated annually using data for quarters filed through 
June thirtieth of the current year to the sixth decimal place; and

 (e) Notwithstanding the provisions 
contained in items (a) through (d), an employer who is in rate class one in tax 
year 2026 remains subject to the calculation contained