A statewide reserve ratio must be computed once each year by adding to the total unemployment compensation fund on June thirtieth all contributions and interest received on or before July thirty-first and dividing the result so obtained by the sum of the total wages reported by contributing employers on their contribution reports received by the commission during the twelve-month period ending September thirtieth of the current year. Any amount credited to the state's account under Section 903 of the Social Security Act, as amended, which has been appropriated for expenses of administration, whether or not withdrawn from the trust fund, is excluded from the unemployment fund balance in computing the statewide reserve ratio. Any amount due and payable as a payment in lieu of contributions by a nonprofit organization as provided in Section 41-31-630, the State of South Carolina, or the federal government must be added to the total unemployment compensation fund for the purposes of the computations required by this section.

1. (1) For the base rate computations made for years prior to the calendar year 2000, when the statewide reserve ratio computed during any calendar year equals or exceeds three and one-half percent, contribution rates applicable to the following calendar year are computed in accordance with Sections 41-31-40 and 41-31-50. When the statewide reserve ratio computed during any calendar year is less than three and one-half percent, all contribution rates applicable to the following calendar year are increased over those computed in accordance with Sections 41-31-40 and 41-31-50 as follows:

   1. (a) thirty-five hundredths of one percent, if the statewide reserve ratio equals or exceeds three percent but is less than three and one-half percent;
   2. (b) seven-tenths of one percent, if the statewide reserve ratio equals or exceeds two and one-half percent but is less than three percent; and

   3. (c) one and five hundredths percent, if the statewide reserve ratio is less than two and one-half percent.

      This section does not apply to any employer whose contribution rate is more than two and sixty-four hundredths percent, and no employer's rate shall exceed two and sixty-four hundredths percent by reason of the application of this section.

2. (2) For the base rate computations made for years commencing with calendar year 2000, when the statewide reserve ratio computed during any calendar year is less than two percent, all contribution base rates as computed in accordance with Sections 41-31-40 and 41-31-50 are adjusted as follows:

   1. (a) one-tenth percent, if the statewide reserve ratio is less than two percent but not less than one and nine-tenths percent;
   2. (b) two-tenths percent, if the statewide reserve ratio is less than one and nine-tenths percent but not less than one and eight-tenths percent;
   3. (c) three-tenths percent, if the statewide reserve ratio is less than one and eight-tenths percent but not less than one and seven-tenths percent;
   4. (d) four-tenths percent, if the statewide reserve ratio is less than one and seven-tenths percent but not less than one and six-tenths percent;
   5. (e) five-tenths percent, if the statewide reserve ratio is less than one and six-tenths percent but not less than one and five-tenths percent;
   6. (f) six-tenths percent, if the statewide reserve ratio is less than one and five-tenths percent but not less than one and four-tenths percent;
   7. (g) seven-tenths percent, if the statewide reserve ratio is less than one and four-tenths percent.