South Carolina Unemployment Benefits
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Learning how to claim unemployment benefits in South Carolina can seem daunting, but once your initial unemployment benefits claim is approved, the state makes it easy to receive your benefits. The amount you receive on a weekly basis will be based on your previous earnings, and it will more than likely be less than you are used to earning.
This fact may be surprising to some, but more complex aspects of your federal unemployment benefits will be easier to understand after you learn about the following issues:
- Understanding your weekly benefit amount in South Carolina
- Paying taxes on your federal unemployment benefits in SC
- Claiming benefits for unemployment in South Carolina
- Working and receiving unemployment Benefits in South Carolina
- How to stop claiming unemployment benefits in South Carolina
South Carolina Unemployment Resources
Understanding Your Weekly Benefit Amount in South Carolina
Unemployment beneficiaries will need to claim unemployment benefits in South Carolina on a weekly basis. The amount a beneficiary receives will remain the same unless he or she chooses to seek part-time employment. Your weekly benefit amount is calculated using the wages you earned during the most recent work year (base period). Businesses employing more than one person are required to pay into the state unemployment insurance fund, but certain types of farm labor and domestic services do not count as “covered” employment. If you are unsure about whether your employer paid unemployment insurance, you may need to contact your previous place of employment before attempting to claim unemployment benefits.
Paying Taxes on Your Federal Unemployment Benefits in SC
Beneficiaries who are claiming benefits for unemployment in South Carolina will need to pay taxes on those benefits. Unemployed individuals can pay taxes in two ways, and the taxes must be paid in full by the usual tax season. The government does not automatically withhold funds from your unemployment benefits, so you can estimate the amount of taxes you owe and pay them four times during the year. Paying estimated taxes can be difficult, and if you underestimate the amount you owe, you will be forced to pay the following year.
If you filed an unemployment benefits claim and you don’t want to worry about paying quarterly estimated taxes, you can request to have a certain portion of your benefits withheld for tax payment each week. The amount you have withheld should be based on your benefit amount. This method is relatively easy, and it can ensure that you do not owe taxes on your SC federal unemployment benefits. You can report your benefit payout on tax form 1099.
Claiming benefits for unemployment in South Carolina
Before you can claim unemployment benefits in South Carolina, you will need to choose a method of payment. One option is to have the state send your funds in the mail on an electronic Visa debit card. You can use your card anywhere Visa is accepted, and you are allowed to withdraw cash from ATM machines and get cash back from stores. There are no fees associated with the card, but it will take you longer to receive your SC federal unemployment benefits if you choose to utilize this method.
The most common payment method for individuals claiming benefits for unemployment is direct deposit. When filing your claim for federal unemployment benefits, you will provide the account and routing number to your bank account, and once the account is verified, you will receive your payment two to three days later. Your bank account must be based in the United States in order to set up direct deposit.
Working and Receiving Unemployment Benefits in South Carolina
If you claim unemployment benefits in South Carolina you are allowed to work part-time. The state even encourages working and receiving benefits at the same time, but all recipients are obligated to report their gross earnings each week, even if they have not been paid yet. Your federal unemployment benefits will not be reduced if you earn 25 percent or less of your weekly benefit amount. Failing to report your earnings can result in the department charging you with unemployment insurance fraud. If you are charged with fraud, you will be barred from receiving benefits for up to one year, and in severe cases, individuals can face jail time and fines. You will also have to pay back any money you have been overpaid if you do not report your earnings.
How to Stop Claiming Unemployment Benefits in South Carolina
You must stop receiving federal unemployment benefits in South Carolina once you accept an offer for suitable work. To stop claiming unemployment benefits, simply stop filing claims and accept your new job. If you have not found employment, you may file for benefits until you reach your maximum benefit amount. Below is some important information about your maximum benefit amount:
- It is the maximum amount of compensation you can receive during the year.
- If you exceed this amount, you must wait until the following calendar year to file a new claim.
- There are times when you can file for an unemployment benefits extension in SC if you meet or exceed your maximum amount.