South Carolina General Assembly
106th Session, 1985-1986

Bill 467


                    Current Status

Bill Number:               467
Ratification Number:       126
Act Number:                83
Introducing Body:          Senate
Subject:                        Definition of wages, income derived
                           from tips
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A83, R126, S467)

AN ACT TO AMEND SECTIONS 41-27-380 AND 41-35-20, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEFINITION OF WAGES, SO AS TO INCLUDE INCOME DERIVED FROM TIPS AND TO CHANGE THE AMOUNT THE EMPLOYER PAYS COMPENSATION ON FROM SIX THOUSAND DOLLARS TO SEVEN THOUSAND DOLLARS, AND TO RESTRUCTURE THE FORMAT OF SECTION 41-35-20.

Be it enacted by the General Assembly of the State of South Carolina:

Definitions

SECTION 1. Section 41-27-380 of the 1976 Code, as last amended by Act 62 of 1983, is further amended to read:

"Section 41-27-380. (1) 'Wages' means all remuneration paid for personal services, including commissions and bonuses, any sums paid to an employee by an employer pursuant to an order of the National Labor Relations Board or by private agreement, consent, or arbitration for loss of pay by reason of discharge and cash value of all remuneration paid in any medium other than cash. The reasonable cash value of remuneration paid in any medium other than cash is estimated and determined in accordance with regulations prescribed by the Commission. 'Wages' includes all tip income (including charged tips) which are received while performing services which constitute employment and are included in a written statement furnished to the employer. 'Wages' does not include:

(a) The amount of any payment with respect to services performed in behalf of an individual in its employ under a plan or system established by an employing unit which makes provision for individuals in its employ generally or for a class or classes of individuals (including any amount paid by an employing unit for insurance or annuities or into a fund to provide for any such payment), on account of (i) retirement, (ii) sickness or accident disability, (iii) medical and hospitalization expenses in connection with sickness or accident disability or (iv) death, provided the individual is in its employ (A) has not the option to receive, instead of provisions for death benefits, any part of payment or, if the death benefit is insured, any part of the premiums (or contributions to premiums) paid by his employing unit and (B) has not the right, under the provisions of the plan, system, or policy of insurance providing for a death benefit, to assign the benefit or receive a cash consideration in lieu of the benefit either upon his withdrawal from the plan or system providing for the benefit or upon termination of the plan, system, or policy of insurance or of his services with the employing unit.

(b) Any amounts received from this State or the Federal Government by members of the South Carolina National Guard, the United States Naval Reserve, the Officers Reserve Corps, the Enlisted Reserve Corps, and the Reserve Corps of Marines as drill pay, including longevity pay and allowances.

(c) The payment by an employing unit (without deduction from the remuneration of the individual in its employ) of the tax imposed upon an individual in its employ, under Section 3101 of the Federal Internal Revenue Code, only if the service is agricultural labor or domestic service in a private home of the employer.

(d) Any payment (other than vacation pay or sick pay) made to an employee after the month in which he attains the age of sixty-five, if he did not work for the employer in the period for which payment is made.

(e) Any remuneration paid in a medium other than cash for service performed in agricultural labor or domestic service.

(2) For the purpose of Chapter 31, Article 1, of this title, 'wages' does not include that part of remuneration which, after remuneration equal to seven thousand dollars has been paid in a calendar year to an individual by an employer or his predecessor or with respect to employment during any calendar year, is paid to the individual by the employer during the calendar year unless that part of the remuneration is subject to a tax under a Federal law imposing a tax against which credit may be taken for contributions required to be paid into a state unemployment fund. For the purposes of this subsection, employment includes service constituting employment under any unemployment compensation law of another state."

Benefits

SECTION 2. Section 41-35-20 of the 1976 Code, as last amended by Act 406 of 1984, is further amended to read:

"Section 41-35-20. (1) Benefits based on service in an instructional, research, or principal administrative capacity in an institution of higher education as defined in Section 41-27-290 or educational institution as defined in Section 41-27-340 must not be paid to an individual for any week of unemployment which begins during the period between two successive academic years, or during a similar period between two regular terms, whether or not successive, or during a period of paid sabbatical leave provided for in the individual's contract, if the individual has a contract or a reasonable assurance that the individual will perform services in this capacity for both these academic years or both these terms.

(2) With respect to services performed after December 31, 1977, in any other capacity for an educational institution or institution of higher education, irrespective of whether the institution is a public, private, or nonprofit organization, benefits are not payable on the basis of these services to any individual for any week which commences during a period between two successive academic years or terms if the individual performs these services in the first of those academic years or terms and there is a reasonable assurance that the individual will perform these services in the second of those academic years or terms. However, if compensation is denied to any individual under this subsection and the individual was not offered an opportunity to perform these services for the educational institution or institution of higher education for the second of these academic years or terms, the individual is entitled to a retroactive payment of compensation for each week for which the individual filed a timely claim for compensation and for which compensation was denied solely by reason of this subsection.

(3) The provisions of subsections (1) and (2) apply both to employees of the educational institution concerned or to persons employed by a governmental agency or entity which is established and operated exclusively for the purpose of providing services to one or more educational institutions if these persons perform these services in the educational institution.

(4) With respect to any services described in subsections (1) and (2) of this section, benefits are not payable on the basis of services in any such capacities as specified in subsections (1) and (2) of this section to any individual who performed these services in an educational institution or institution of higher education while in the employ of an educational service agency. For purposes of this section, 'educational service agency' means a governmental agency or governmental entity which is established and operated exclusively for the purpose of providing these services to one or more educational institutions.

(5) With respect to any services described in subsections (1) and (2), benefits are not payable on the basis of services in any such capacities to any individual for any week which commences during an established and customary vacation period or holiday recess if the individual performs these services in the period immediately before the vacation period or holiday recess, and there is a reasonable assurance that the individual will perform these services in the period immediately following the vacation period or holiday recess.

(6) In this section 'reasonable assurance' means a written, verbal, or implied agreement that the employee will perform services in the same capacity during the ensuing academic year or term."

Time effective

SECTION 3. This act shall take effect upon approval by the Governor.