South Carolina’s All-in-One Payroll Solution

We support federal & state tax deposits and filings for small businesses in The Palmetto State (South Carolina) with our all-in-one payroll solution.

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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.

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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 2018.

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 1.09% for 2018.

PayWow automatically calculates the State Unemployment Insurance for South Carolina. The withholding amount will be deposited on-time so you don’t have to worry about it!

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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.

Exceptions:

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 Wage: $7.25*
Minimum Cash Wage (Tipped Employee): $2.13*
Maximum Tip Credit: $5.12*
Youth Sub-Minimum Wage: $4.25*

Termination pay:

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.

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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 Details:

Employer Name, Address, Federal Identification Number, Phone Number (optional)

Employee Details:

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.

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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.

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Reciprocal States

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.

Local Taxes

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 UCE-120A - Employer's Quarterly Continuation Sheet
Form WH -1612 - W2/Magnetic Media Transmittal Form

All the required state forms of South Carolina will be automatically filed by PayWow along with the federal forms on-time without any trouble.

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