South Carolina unemployment tax changed their reporting rules on reporting Corporate Officers wages effective January 1st, 2015.
South Carolina unemployment tax changed their reporting rules on reporting Corporate Officers wages effective January 1st, 2015.
You are an employer who pays wages in the State of South Carolina and have an active QuickBooks Payroll Subscription. This new reporting information is for all Intuit Payroll products.
"Effective January 1, 2015, state law exempts corporate officers from state unemployment insurance (UI) coverage. However, a corporation may elect coverage of its corporate officers. The law only applies to officers of a corporation, and does not apply to other business entities such as limited liability companies (LLCs), sole proprietors or partnerships.
(The agency has shown a new 2015 Bill that could change the Corporate Officer rules; Senate Bill 407 in 2015. Refer to the agency for any updates on this subject.)
Corporate officers are described in a corporation's bylaws or appointed by the board of directors in accordance with its bylaws. An appointed officer may employ one or more officers or assistant officers if authorized by the bylaws or the board of directors.
If corporate officers are covered by UI, the employer must report the individuals each quarter as employees and pay state unemployment taxes on their wages. Corporate officers that are covered by UI may be eligible for unemployment benefits if they lose their jobs and meet eligibility requirements.
For additional facts and details of the law, please click here.
We recommend you review the details on the agency website and review the Frequently Asked Questions section. After reviewing the information and impact on your business, please make the necessary updates in your payroll account to reflect any changes.
For additional information please contact the South Carolina Department of Labor at 803.737.2400."
South Carolina Unemployment provided this information:
"If corporate officers are covered by UI, the employer must report the individuals each quarter as employees and pay state unemployment taxes on their wages. Corporate officers that are covered by UI may be eligible for unemployment benefits if they lose their jobs and meet eligibility requirements.
For additional facts and details of the law, please click here.