What percentage of the state unemployment compensation tax is paid by employees?

What percentage of the state unemployment compensation tax is paid by employees?

• A. 1%
• B. 2%
• C. 0%
• D. 5%

Answer: (C)

In South Carolina, employees do not directly contribute to the state unemployment compensation tax. Instead, it is an employer-funded program where the responsibility lies solely with the employers to pay the unemployment tax to the state. This system is designed to provide financial support to workers who lose their jobs through no fault of their own, ensuring that employees receive benefits funded entirely by employer contributions. As a result, the correct understanding is that the percentage of the state unemployment compensation tax paid by employees is indeed zero, making it clear why the option indicating no payment by employees is correct. Each state has its own rules regarding unemployment funding, but in this case, South Carolina specifically establishes that the burden of funding the unemployment system rests entirely on employers.

In South Carolina, employees do not directly contribute to the state unemployment compensation tax. Instead, it is an employer-funded program where the responsibility lies solely with the employers to pay the unemployment tax to the state. This system is designed to provide financial support to workers who lose their jobs through no fault of their own, ensuring that employees receive benefits funded entirely by employer contributions.

As a result, the correct understanding is that the percentage of the state unemployment compensation tax paid by employees is indeed zero, making it clear why the option indicating no payment by employees is correct. Each state has its own rules regarding unemployment funding, but in this case, South Carolina specifically establishes that the burden of funding the unemployment system rests entirely on employers.