Payroll
New Employer Payroll Setup: Step-by-Step Checklist for 2026
Get your EIN, register with South Carolina, set up withholding, new hire reporting — the complete checklist.
Practical guides on SC payroll taxes, employer registration, SUI, minimum wage, and labor laws — written for small business owners, not accountants.
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Get your EIN, register with South Carolina, set up withholding, new hire reporting — the complete checklist.
New employer rate 0.55%, experienced range 0.06%5.46%, wage base $14,000.
South Carolina minimum wage $7.25/hr. South Carolina has no state minimum wage law; the federal minimum of $7.25/hr applies statewide.
South Carolina graduated 0%6.4% income tax, SUI on the first $14,000, and all employer tax obligations explained.
Get your EIN, register with South Carolina, set up withholding, new hire reporting — the complete checklist.
New employer rate 0.55%, experienced range 0.06%5.46%, wage base $14,000.
South Carolina minimum wage $7.25/hr. South Carolina has no state minimum wage law; the federal minimum of $7.25/hr applies statewide.
New employer rate 0.55%, experienced range 0.06%5.46%, wage base $14,000.
South Carolina minimum wage $7.25/hr. South Carolina has no state minimum wage law; the federal minimum of $7.25/hr applies statewide.
South Carolina graduated 0%6.4% income tax, SUI on the first $14,000, and all employer tax obligations explained.
Get your EIN, register with South Carolina, set up withholding, new hire reporting — the complete checklist.
New employer rate 0.55%, experienced range 0.06%5.46%, wage base $14,000.
South Carolina minimum wage $7.25/hr. South Carolina has no state minimum wage law; the federal minimum of $7.25/hr applies statewide.
IRS classification rules, South Carolina-specific considerations, misclassification penalties.
Gusto vs Paychex vs QuickBooks vs ADP — detailed comparison for South Carolina small businesses.
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This article is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently. The information on this page reflects our understanding as of the date noted above and may not reflect recent changes in federal or South Carolina state law. Do not act or refrain from acting based solely on the information in this article. Always consult a qualified attorney, CPA, or HR professional familiar with South Carolina law before making payroll or compliance decisions for your business.
South Carolina's income tax saw a significant change in 2022: the state began a multi-year reduction of its top rate from 7% down to 6%, dropping 0.1% per year. For 2026, the top marginal rate is 6.2%. The brackets below that are 0% on the first $3,460, 3% on $3,461–$17,330, and 6.2% above $17,330 (single filers). Employers use withholding tables from the South Carolina Department of Revenue and employees complete SC W-4 to set their withholding allowances. Withholding returns are filed monthly or quarterly depending on liability, and the annual reconciliation is due January 31. South Carolina's withholding table updates are issued in November for the following year.
South Carolina's minimum wage is $7.25/hr, matching the federal floor. The state hasn't raised its minimum wage since 2009 and there's no current legislation to change it. Tipped employees can be paid $2.13/hr, the federal tipped minimum. South Carolina doesn't allow local governments to set minimum wage rates higher than the state floor, so $7.25/hr applies uniformly. This is relevant to employers in Charleston and Columbia, where the cost of living is higher but the wage floor is the same as rural counties.
South Carolina's unemployment insurance is administered by the Department of Employment and Workforce (DEW). The SUI taxable wage base for 2026 is $14,000 per employee. New employers pay a standard rate of 1.04% for their first three years. After experience rating kicks in, the range is 0.06% to 5.46%. Quarterly SUI returns are due April 30, July 31, October 31, and January 31. You register for a DEW employer account through their online portal at dew.sc.gov. New hire reporting goes to the SC State Directory of New Hires within 20 days.
South Carolina doesn't have state disability insurance or a paid family and medical leave program. South Carolina also has a wage payment act that sets specific requirements for how and when wages are paid. SC law requires employers to pay on a regular schedule, and final paychecks for terminated employees must be paid by the next scheduled payday. The SC Department of Labor, Licensing and Regulation handles wage payment complaints, and penalties for unpaid wages can be significant.
A few 2026 items worth noting: the continued top rate reduction to 6.2% means if your software or manual tables are based on last year's 6.3% rate, you'll over-withhold. Verify your tables are updated. South Carolina also has a tax credit program for employers who hire certain categories of workers—worth a conversation with your CPA if you're expanding your headcount. Federal payroll requirements are standard: FICA, FUTA, Form 941 quarterly, and W-2s by January 31, 2027.
More detail is in our guides on South Carolina payroll taxes, 2026 SUI rates, and new employer registration.
0.55% new employer SUI rate (one of lowest in US), declining income tax, $7.25 minimum wage, and final paycheck rules for South Carolina employers.
Quarterly deadlines, line-by-line walkthrough, deposit schedules, how to amend with Form 941-X, and penalties for late filing.
Minimum wage, overtime thresholds, white-collar exemption tests, child labor rules, recordkeeping, and DOL audit triggers.
New hire, every-payroll, monthly, quarterly, and annual federal compliance tasks in one organized checklist.