South Carolina State Payroll Tax Information
PayWow equips your small business with the latest resources on state payroll tax withholding, unemployment tax withholding, and even more.
South Carolina Withholding Requirements
Employers in the state of South Carolina must take withholdings from employee income such as wages, prizes, royalties, winnings, etc.
Once withholdings have been taken, the employer must make a return or deposit to the SCDOR (South Carolina Department of Revenue) for any taxes that have been withheld for the state purposes.
In order to report your withholding amount, you need to register as an employer by completing Form SCTC-111. If you are an existing employer you can find out your Withholding File Number on acknowledgment notice that you received from the South Carolina Department of Revenue.
As an Employer you can get your Employee’s Withholding Allowance Certificate by using the federal Form W-4 or its similar state form if applicable. The information collected on this Form W-4 will be used to calculate the withholding amount for your employees which is then reported & deposited to the South Carolina Department of Revenue.
South Carolina withholding requirements and calculations is automatically done by PayWow and deposits are done on-time.Get Started Now
State Unemployment Insurance (SUI)
The State Unemployment Insurance (SUI) program provides compensation to eligible workers who have lost their jobs through no fault of their own. The Department of Employment and Workforce (DEW) is responsible for SUI for the state of South Carolina.
Employers are only required to contribute toward state unemployment taxes. This amount is not deducted from the employee’s wages.
South Carolina Wage Base:
Unemployment Insurance for South Carolina is calculated based on benefit ratio formula. And it is calculated upto the first $14,000 of each employee earns. Wages that are earned after $14,000 are not taxed under SUI.
Note:The SUI wage base in South Carolina is $14,000 for 2019.
South Carolina Employer Contribution Rate:
Employer’s contribution rates for SUI is determined by Department of Employment Workforce (DEW) each year based on the employer’s history. And these contribution rate ranges from 0.06% to 5.46%.
The employer’s benefit ratio can be found on the Annual Notice of Contribution Rate Form that they received from the DEW by the end of each year.
If you are an new employer then the contribution rate for calculating your SUI is 0.87% for 2019.
Employer Quarterly Wage Report - Form SC UCE 120/101
In South Carolina, employers are required to file the quarterly wage report on or before the last day of the month following the calendar quarter. In other words,
|Quarter||Reporting Period||The Due Date will be on|
|1||January - March||April 30th|
|2||April - June||July 31st|
|3||July - September||October 31st|
|4||October - December||January 31st|
PayWow automatically calculates the State Unemployment Insurance for South Carolina. The withholding amount will be deposited on-time. Also, wage reporting will be filed at the end of the quarter so you don’t have to worry about it!Get Started Now
State Disability Insurance (SDI)
There is no State Disability Insurance for the state of South Carolina.
State Labor Laws
Minimum Wage Rate:
South Carolina doesn't have a separate state minimum wage rate for salaried, overtime and tipped employees. The state follows the federal Fair Labor Act which has the minimum wage rate of $7.25 per hour.
The minimum wage applies to most employees in South Carolina with limited exceptions including tipped employees, some student workers, and other exempt occupations.
|Minimum Wages||Effective 03/24/2018|
|Minimum Cash Wage (Tipped Employee):||$2.13*|
|Maximum Tip Credit:||$5.12*|
|Youth Sub-Minimum Wage:||$4.25*|
South Carolina State law requires the employer to pay an employee all wages due within 48 hours of the day of separation OR the next regularly-scheduled payday, not exceeding 30 days.
PayWow will easily adjust minimum wage, and tips for each of your employees and simplify the payroll process.Get Started Now
New Hire Reporting
Employers must report all the newly hired and rehired employees to the South Carolina Department of Social Services within 20 days of hiring the employees.
The information reported on new hire reporting will be used for
- Establishing and enforcing child support orders
- Detecting Unemployment Benefits overpayments and fraud
- Detect Workers' Compensation overpayments and fraud
Employers should report the following data to the Department of Social Services when they hire the new employees to their organizations.
Employer Name, Address, Federal Identification Number, Phone Number (optional)
Employee Name, Address, Social Security Number, Date of Birth & Date of Remuneration
Penalties faced by an Employer failing to report newly hired or rehired employees:
- $25 for the second offense and $25 for each offense thereafter; or
- $500 for each and every offense, if the failure to report is the result of a conspiracy between the employer and the employee not to supply the required information or to supply false or incomplete information.
PayWow will automatically report the new hired employees to the state, and also send the required copies to both the employer and employees.Get Started Now
Remit Withholding for Child Support
As an employer, you might be involved in the child support process. Child support withholding is a payroll deduction. You will receive a withholding notice from the state agencies telling you if you are required to make child support deductions from your employee wages. Once you remit the withholding to the state agencies, the amount goes to the custodial parent.
Employers should remit child support payroll withholding to:Child Support Services,
P.O. Box 1469,
Columbia, SC 29202-1469.
For more information visit the South Carolina Department of Social Services.
Remit Withholding for Child Support garnishments payments will be automatically calculated and handled by PayWow.Get Started Now
A reciprocal is an agreement between two states that allows residents of one state to request exemption from tax withholding in the other (reciprocal) state. This can save the employer from trouble of having to file multiple state returns. The following are the reciprocal states of South Carolina.
- Alaska, Arizona, Arkansas, Florida, Georgia, Idaho, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, South Dakota, Texas, Tennessee, Virginia, West Virginia, and Wyoming.
- No Local taxes for South Carolina. For additional information visit the state of South Carolina Local Tax Designation
South Carolina State Tax Forms
Required State Forms of South Carolina.
|DOR: Department of Revenue||DEW: Department of Employment and Workforce|
|Form WH-1601: Monthly Withholding Return||Form UCE-1010 - SC Written Authorization Form|
|Form WH-1605 - Withholding Quarterly Tax Return||New Hire Report - Custom Form|
|Form WH-1606 - Withholding 4th Quarter & Annual Reconciliation||Form UCE 101/120 - Employer Quarterly Contribution and Wage Reports|
|Form W-2 - Wage and Tax Statements|
All the required state forms of South Carolina will be automatically filed by PayWow along with the federal forms on-time without any trouble.Get Started Now
Form WH 1605 - Withholding Quarterly Tax Return
The Form 1605, Withholding Quarterly Tax Return, is used by employers in South Carolina to report state taxes withheld from an employee's paycheck.
If you are an employer/withholding agent (resident and non resident) in South Carolina, you need to file Form 1605 for the first three quarters of the year.
This return must be filed even if no state tax has been withheld during the quarter to prevent a delinquent notice from being mailed.
Form WH 1606 - Withholding Fourth Quarter and Annual Reconciliation Return
You don’t need to file a WH-1605 for the 4th quarter, instead file Form WH-1606.
Form WH-1606 is used to report your 4th quarter withholding and for the annual reconciliation.
You need to file Form WH-1606, even If you have opened your South Carolina withholding account for any portion of the year.
Form 1605 & 1606 Filing Deadlines
The quarterly return will be due on or before the last day of the month following the close of the quarter. In other words:
January – March
April – June
July – September
October – December
- If due date falls on a Saturday, Sunday, or holiday, then it will be extended to the next business day.
Never worry about withholding, deposits, tax filing when PayWow does everything for you. Spend less time in Payroll and more time on your business.Get Started Now
Preparing SC Withholding Quarterly Tax Return WH-1605
Completing Basic Information
- Complete the basic details of business such as name, address, SC withholding file number and Federal Employer Identification Number (FEIN)
- Choose the quarter that you are reporting and enter the tax year
If you are filing
- an amended return, put an X in the box corresponding to amended return
- for closing withholding account, provide the closing date and complete Form C-278
Completing Quarterly Withholding Details
- On line 1, you have to enter the SC state income tax withheld. And if you have deposited or made payments already, enter the amount on line 2.
Calculate the difference between line 1 and 2. This help you determine refund or tax that you owe.
- If line 2 is greater than line 1, enter the difference on line 3 and the amount that you paid excess will be refunded by the SC Department of Revenue.
- If line 2 is less than the line 1, enter the difference on line 4 and you are responsible for paying the difference (tax that you owe) to the SC Department of Revenue. Tax due may vary if you are filing or paying late.
- Sign the Form and mail it to the SC Department of Revenue or file it electronically through mydorway.dor.sc.gov
When you choose PayWow, we will automatically file your Form 1605 with the SC Department of Revenue.Get Started Now
Preparing 4th Quarter & Annual Reconciliation Form WH-1606
Completing Quarterly Withholding Details
- On line 1, you have to enter the SC state income tax withheld of the fourth quarter. And if you have deposited or made payments in the fourth quarter, enter the amount on line 2.
Calculate the difference amount between line 1 and 2. This helps you to determine refund or tax that you owe.
- If line 2 is greater than line 1, enter the difference on line 3 and this amount (Excess amount you paid) will be refunded to you by the SC Department of Revenue
- If line 2 is less than the line 1, enter the difference on line 4 and you have to pay this amount (tax that you owe) to the SC Department of Revenue. Balance due may vary if you are filing or paying late.
Completing Annual Withholding Details
- On Line 7, you have to enter the total amount withheld from all quarters and on Line 8, you have to enter the total amount withheld reported from W2s, W2Gs, and 1099s. It should be equal to the Line 7 otherwise find out whether the quarter or quarters that should be amended.
- On Line 9, you have to enter the total SC income from W2s, W2Gs, and 1099.
- On Line 10, you have to enter the total number of W2s, W2Gs, and only 1099s submitted with WH-1612.
- Sign the form and mail it to the Department of Revenue or file it electronically through mydorway.dor.sc.gov
When you choose PayWow, we will automatically file your Form 1606 with the SC Department of RevenueGet Started Now