(A)(1) If the department finds that an additional contribution is due, that the report was made in good faith, that the understatement of the contribution is not deliberate, then no penalty shall be added because of the understatement. However, except for the time period contained in item (2), the amount of the deficiency shall bear interest at the rate of one percent for each month or fraction of a month that it remains unpaid.
(2) For calendar year 2011, retroactive to January 1, 2011, for months January through June thirtieth of that year, the amount of deficiency that arises under the circumstances provided in item (1) shall bear interest at the rate of 0.25 percent for each month or fraction of a month that it remains unpaid. However, if the department finds that the understatement is due to the circumstances provided in subsection (B) or (C) then the employer is not entitled to the 0.25 percent interest rate.
(B) If the department finds that the understatement is due to negligence on the part of the employer, but without intent to defraud, there shall be added to the amount of the deficiency, in addition to interest calculated in the manner provided in subsection (A), a ten percent penalty.
(C) If the department finds that the understatement is false or fraudulent, with intent to evade the payment of the contribution due, there shall be added to the amount of the deficiency, in addition to interest calculated in the manner provided in subsection (A), a one hundred percent penalty.
HISTORY: 1962 Code Section 68-203; 1952 Code Section 68-203; 1942 Code Section 7035-94; 1936 (39) 1716; 1939 (41) 487; 1941 (42) 369; 2010 Act No. 234, Section 1, eff January 1, 2011; 2011 Act No. 63, Section 19, eff June 14, 2011.
Effect of Amendment
The 2010 amendment rewrote the section.
The 2011 amendment rewrote subsection (A) by adding the subsection identifiers and adding subsection (A)(2) relating to calendar year 2011.
Structure South Carolina Code of Laws
Title 41 - Labor and Employment
Chapter 31 - Contributions And Payments To The Unemployment Trust Fund
Section 41-31-10. General rate of contribution.
Section 41-31-20. Employers' accounts.
Section 41-31-30. Classification of employers.
Section 41-31-40. Base rate computation periods.
Section 41-31-45. Debt status estimates; promulgation of regulations.
Section 41-31-50. Determination of tax rates.
Section 41-31-52. Benefits for seasonal workers.
Section 41-31-55. Additional surcharges when fund insolvent; rates; deposit in special account.
Section 41-31-80. Omitted by 2010 Act No. 234, Section 1, eff January 1, 2011.
Section 41-31-90. Effect of change of corporate name.
Section 41-31-100. Successor by purchase, merger of entire business as employer; notice.
Section 41-31-110. Computation of base rates applicable to successors.
Section 41-31-120. Successor by merger, purchase of part of established business.
Section 41-31-130. Refunds not authorized; adjustments made by deductions from future payments.
Section 41-31-140. Transfer of experience rating account.
Section 41-31-150. Treatment of fractions of a cent.
Section 41-31-160. Contribution reports shall not be required more frequently than quarterly.
Section 41-31-170. Report to employer on status of account; protests.
Section 41-31-320. Examination of reports and computation of contribution; notice of excess due.
Section 41-31-330. Imposition of penalty.
Section 41-31-350. Penalty for failure to file report.
Section 41-31-360. Adjustments and refunds.
Section 41-31-370. Interest on unpaid contributions.
Section 41-31-380. Lien for contributions, interest, penalties, and costs.
Section 41-31-390. Issuance of warrant of execution for collection.
Section 41-31-400. Procedure under execution.
Section 41-31-420. Priorities under legal dissolution or distribution.
Section 41-31-600. Definition of "nonprofit organization".
Section 41-31-610. Application of article.
Section 41-31-620. Election to make payments in lieu of contributions.
Section 41-31-640. Security to insure payments.
Section 41-31-650. Failure to post security.
Section 41-31-660. Amount of payments; group accounts.
Section 41-31-810. Application of Article 5.
Section 41-31-910. General provisions.
Section 41-31-920. Inclusion of assessments in quarterly contribution report.