The bill S. 688 proposes several amendments to the South Carolina Code of Laws concerning the Unemployment Trust Fund. Key changes include altering the lookback period for calculating the benefit ratio from a maximum of twelve quarters to twenty quarters starting in tax year 2028. Additionally, it introduces a solvency target for the fund and modifies the penalties associated with delinquent reports and unpaid contributions. Specifically, the bill removes the cap on penalties for failing to file reports and for failing to pay contributions, allowing for potentially higher penalties for non-compliance.

Furthermore, the bill establishes a new tax rate structure for employers with outstanding tax executions, increasing their contribution rate by an additional two percent if they have unpaid taxes from 2027 onwards. It also mandates that the Department of Employment and Workforce calculate the necessary income to meet benefit payments and solvency targets annually. The act is set to take effect on July 1, 2026, upon approval by the Governor.

Statutes affected:
12/10/2025: 41-31-5, 41-31-45, 41-31-60, 41-31-350, 41-31-370
Latest Version: 41-31-5, 41-31-45, 41-31-60, 41-31-350, 41-31-370