Determine If You Need to Establish an Unemployment Tax Account

A non-profit organization may or may not need to establish an unemployment tax account with DEW.

Your organization would be considered liable for South Carolina UI tax contributions if it meets any one of the following criteria.

  • A non-profit organization, exempt under IRS Code 501-C-3, that employs four or more individuals for any 20 weeks within the current or preceding calendar year.
  • A state government agency.
  • A local government entity that employs at least one individual; regardless of the number of weeks the individual is employed or how much he is paid.
  • A business that elects to become a liable employer.

Voluntary Election

An exempt non-profit employer, however, can elect to establish an account and make tax contribution. To do so, complete the Election to Become an Employer Form (UCE-154) and submit it to the address below.

S.C. Department of Employment and Workforce
Employer Status Unit
P.O. Box 995
Columbia, SC 29202

All liable employers are responsible for preserving employee records and submitting quarterly wage reports. For more information, visit the Responsibilities of Liable Employers page.

However, certain organizations in South Carolina do not pay quarterly UI taxes. Instead these entities reimburse DEW for the total dollar value of UI benefits paid to their former employees. These entities are known as reimbursable employers.

Non-profits can choose to become reimbursable employers by completing and mailing the Election to Become Reimbursable Form (UCE-155) along with an IRS Code 501-C-3 Exempt Letter to the address below. Without this documentation, the organization is considered an employer liable for paying quarterly UI taxes.

S.C. Department of Employment and Workforce
Employer Status Unit
P.O. Box 995
Columbia, SC 29202

Bonding Requirements for Certain Non-Profits

Non-profit organizations that have chosen to be reimbursable employers and do not possess title to real property and improvements valued at more than $2 million are required to meet one of the following bonding requirements before being approved as a reimbursable employer. Read more here.

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