DEW makes Second Unemployment Loan Repayment

The SC Department of Employment and Workforce made a voluntary payment this week of $75 million to the federal government for the agency’s unemployment trust fund loan. This marks the second voluntary payment the state has made in 2013 bringing the total to $219 million this year. “Today we are proud to announce we are paying an additional $75 million towards the nearly $1 billion federal unemployment loan,” said SC Governor Nikki Haley. “This will save the taxpayers and businesses of this state $1 million in interest over the next two years, putting us on a path of being paid off by 2015, which is a real reason to celebrate.” One of the criteria for states that owe money to the federal government (including South Carolina) to avoid increased federal unemployment taxes for businesses in 2013 is to make a loan payment by November 10, 2013. DEW made a $144 million payment in May. The agency anticipates receiving official approval to avoid the increased taxes from the US Department of Labor in early November. South Carolina avoided higher federal taxes in 2011 and 2012. To date, South Carolina has repaid more than $520 million of the $977 million borrowed from the federal government. After this month’s loan repayment of $75 million, the outstanding balance will be approximately $455 million. The state is scheduled to repay the entire loan amount by the end of 2015.