FAMILY INDEPENDENCE PAYMENTS CREDIT: For employers hiring qualifying recipients of Family Independence Payments. (TC-12)
This credit combined with the jobs tax credit (TC-4), small business job tax credit (TC-4SB), or small business alternative job tax credit (TC-4SA) cannot total more than $5,500 per employee.
The credit exists only for the first three consecutive years of employment of qualified employees.
This credit is limited to:
1. 20% of wages for each full month of the first 12 months of employment
2. 15% of wages for each full month of the second 12 months of employment
3. 10% of wages for each full month of the third 12 months of employment
Qualifying wages include only those wages paid to employees who received Family Independence, Aid to Families with Dependent Children (AFDC) payments for three months immediately preceding the month of employment. Submit an employee release, and request certification of Family Independence eligibility by writing to the South Carolina Department of Social Services by the 15th day of the first month after the end of the taxable year in which the employee is hired.
To claim this credit, the employer must make health insurance available to the qualified employee on the same basis and under the same conditions available to all employees, including employer contributions and employer imposed waiting periods. The employer is not required to make health insurance payments on behalf of the qualified employee unless the employer makes health insurance payments on behalf of nonqualified employees. If an employer imposed waiting period exists, the credit begins from the date the qualified employee is hired. An employer imposing a waiting period of more than 12 months may not claim this credit.
The employer may not claim this credit if the position filled by the former AFDC recipient was made available due to the termination or forced resignation of an employee for the purpose of obtaining the tax credit.
This credit may be carried forward 15 years from the taxable year the credit is earned.