A new employer has paid $9000 to an employee during the year. What would the state unemployment tax be in South Carolina?

To determine the state unemployment tax in South Carolina, it’s crucial to understand the applicable tax rate and wage base for unemployment insurance. The state typically has a wage base limit, which functions as the threshold for taxable wages. As of recent updates, the wage base in South Carolina is $7,000.

Employers pay a percentage of wages up to this wage base as their unemployment tax. If a new employer is paying unemployment taxes, they often start with a standard tax rate set for new employers, which can vary but is typically around 2.4%.

In this scenario, the employer has paid the employee a total of $9,000 for the year. However, only $7,000 of this amount is liable for the unemployment tax because anything over that amount is not taxed.

Calculating the tax involves determining the tax on $7,000 at the new employer's rate of 2.4%. Thus:

• Maximum taxable wage base: $7,000

• Unemployment tax rate: 2.4%

• Unemployment tax calculation: $7,000 x 0.024 = $168

Although the appropriate tax rate of 2.4% gives a tax of $168, this does