SC Agency Failed to Pay $16.2M in Federal Taxes on Unemployment Benefits

COLUMBIA, S.C. (AP) - The state’s jobless benefits agency has provided more details on its failure to pay state and federal income taxes on unemployment benefits last year.

The agency said Thursday it didn’t pay $16.2 million in withholdings between February and May.

The state Revenue Department told the Employment Security Commission to pay $900,000 in penalties and $50,000 in interest. But the state agency reduced that tab to only $25,000 in interest.

The Internal Revenue Service has not told the agency how much its penalty would be. In a Nov. 3 letter to the IRS the commission says payments were delayed mostly through computer problems and staff turnover and asked for a waiver of penalties.

Legislators want the agency overhauled and question its leadership.