Can you contest your tax rate?
Having recently received your 2017 tax rate notice, you may have questions about how they are determined or disagree with the rate given to your business. So what do you do?
Unfortunately, South Carolina laws governing the tax rate assignment do not provide for an appeals process. However, if you disagree with the historical information contained in your notice of contribution rate you can submit a written request for a review within 30 days from the date on the notice. You must submit your request, along with any documentation of errors either by email at email@example.com, fax 803-737-2862 or by mail at:
S.C. Department of Employment and Workforce
Experience Rate Section
P.O. Box 995
Columbia, SC 29202
The tax rates, according to state law, adjust automatically each year based on a formula that considers the following:
- Projected benefit costs for the year (“base rate”)
- Projected amount required to return the Trust Fund to an adequate balance by 2020 (“solvency surcharge”)
Tax rates are set each year to fund these components. Each employer is also responsible for a Departmental Administrative Contingency Assessment (DACA) surcharge of 0.06 percent which is added to the base rate and interest surcharge:
Total Tax Rate = Base Rate + Solvency Surcharge + DACA
If you have additional questions, you can contact the employer tax services line at 803-737-3080. To view the 2017 Tax Rate Chart click here.