SC unemployment agency pays $60M of debt - FOX Carolina 21

SC unemployment agency pays $60M of debt

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South Carolina's unemployment agency is making a $60 million early payment toward its debt to the federal government.

The Department of Employment and Workforce announced Wednesday it is making a payment more than six months ahead of schedule. Agency officials say it saves $1.4 million in interest and helps reduce business insurance taxes. The agency has paid early for the past several years.

The payment leaves a balance of $396 million on the state's original debt of nearly $1 billion.

The debt accumulated between December 2008 and spring 2011 as the agency borrowed money to send unemployment checks amid climbing jobless rates.

The state is on track to pay the debt off next year.

Paying early ensures that the state avoids higher federal unemployment tax rates.

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