Quick Answer
To run payroll in South Carolina, get a federal EIN, register with the South Carolina Department of Revenue for state withholding, register with the Department of Employment and Workforce for SUI, pay employees at least twice a month, report new hires within 20 days, and file W-2s by January 31. New employer SUI runs 1.06% in 2026 on the first $14,000 per employee.
Last reviewed: July 2026
Table of Contents
Hiring your first employee in South Carolina sets off a short list of registrations and recurring deadlines. None of it is complicated on its own, but skipping a step or missing a due date creates penalties you didn't need. This walkthrough covers the order to do things in, which agency handles what, and the numbers that changed for 2026.
Step 1: Get a Federal EIN
Every South Carolina employer needs a federal Employer Identification Number before touching any state registration. Apply free at IRS.gov and you'll have the number the same day. You'll use it on your state withholding application, your SUI account, your bank paperwork, and every quarterly return you file from here forward.
Step 2: Register With South Carolina Agencies
Two state agencies matter for payroll purposes. The South Carolina Department of Revenue (SCDOR) handles state income tax withholding, and the South Carolina Department of Employment and Workforce (DEW) handles unemployment insurance. A third agency, the South Carolina Department of Labor, Licensing and Regulation (LLR), oversees wage payment law but doesn't issue a tax account.
Register with SCDOR through MyDORWAY at dor.sc.gov/withholding, and register with DEW at dew.sc.gov. Both can take a few business days to process, so start them as soon as you know you're hiring rather than waiting until payroll week.
Step 3: Set Up State Withholding
South Carolina has its own withholding certificate, the SC W-4, separate from the federal Form W-4. Employees hired since 2020 need to complete both forms. If someone doesn't turn in an SC W-4, withhold as if they claimed zero allowances until they do.
SCDOR publishes updated withholding tables and a withholding formula each year at dor.sc.gov, and you should pull the current version before your first January payroll run. Filing frequency for the withholding account depends on volume: quarterly if you withhold under $500 a year, monthly between $500 and $14,999, and semi-weekly at $15,000 or more. New employers usually start on the quarterly or monthly schedule.
Step 4: Open Your SUI Account
Unemployment insurance is an employer-only tax in South Carolina; employees don't contribute anything toward it. For 2026, new employers pay 1.06% (a 1.00% base rate plus a 0.06% contingency assessment) on the first $14,000 of each employee's wages, which works out to roughly $148 per employee for the year. DEW assigns your permanent experience rate after you've had at least 12 months of payroll history, and rates for established employers range from 0.06% up to 5.46% depending on how many claims have been charged against your account.
File your SUI return quarterly, even in quarters with no wages paid. Returns and payments go through the DEW employer portal, and the due dates line up with the last day of the month following each quarter: April 30, July 31, October 31, and January 31.
Step 5: Pick a Pay Frequency and Know Final-Pay Rules
South Carolina law requires wages to be paid at least twice a month. Weekly and biweekly schedules meet that bar too, and most small employers pick biweekly or semimonthly for simplicity. Whatever schedule you choose, put it in writing and give employees advance notice if you ever change it. The LLR Office of Wages and Child Labor administers the state's wage payment law and can field questions on recordkeeping and pay statements.
When someone leaves, whether they quit or you let them go, pay their final wages by the next regular payday. South Carolina doesn't require same-day or next-business-day final pay the way some states do. If your written policy treats accrued vacation as a vested, payable benefit, include it in that final check.
Step 6: Deposits, Filings, and the Calendar
Once withholding and SUI accounts are open, the recurring calendar looks like this: deposit withheld state income tax on the frequency SCDOR assigned you, file quarterly withholding returns (WH-1605 for quarters one through three, WH-1606 for the fourth), and file quarterly SUI reports with DEW by the deadlines above. Report every new hire and rehire to the South Carolina New Hire Reporting Program within 20 days of the start date; this feeds child support enforcement and fraud checks at the federal level too.
On the federal side, Form 941 is due quarterly on the same April 30 / July 31 / October 31 / January 31 schedule, and federal deposit timing depends on your lookback-period liability. Missing a deposit date usually costs more in penalties than the tax itself, so build these dates into whatever calendar or payroll software you already use.
Step 7: Year-End W-2s
W-2s are due to employees and to SCDOR by January 31 following the tax year. Employers filing 50 or more W-2s must submit electronically through MyDORWAY, and every W-2 needs your South Carolina withholding account number listed alongside the state wages and tax withheld. Reconcile your fourth-quarter withholding return against your W-2 totals before you file either one; a mismatch is one of the more common reasons SCDOR sends a follow-up notice.
Running payroll by hand gets harder once you add a second or third employee, particularly for tracking deposit frequencies and new hire deadlines across two agencies. A paycheck calculator at /calculator and the withholding worksheet at /w4-helper can help you sanity-check numbers before you submit anything official. For the federal side of quarterly filing, our Form 941 guide walks through the return line by line.
Frequently Asked Questions
How do I register as a new employer in South Carolina?
Get a federal EIN from the IRS, register for a withholding account with the South Carolina Department of Revenue through MyDORWAY, and open an unemployment insurance account with the South Carolina Department of Employment and Workforce. Do this before your first payroll run.
What is the South Carolina SUI new employer rate in 2026?
New South Carolina employers pay 1.06% in 2026, made up of a 1.00% base rate plus a 0.06% contingency assessment, on the first $14,000 of each employee's wages. DEW reassigns your rate annually once you have at least a year of claims history.
How often must South Carolina employers pay employees?
State law requires wages to be paid at least twice a month, though weekly and biweekly schedules are common and satisfy the requirement too. Employers must tell employees the pay schedule in writing and give written notice before changing it.
When are South Carolina payroll tax deposits and filings due?
Withholding deposit frequency depends on how much you withhold annually: quarterly for under $500, monthly for $500 to $14,999, and semi-weekly for $15,000 or more. SUI returns are due the last day of the month following each quarter, and W-2s are due to SCDOR by January 31.
Let Software Carry the Deadlines
Between two agencies, quarterly filings, and a January 31 W-2 deadline, payroll software earns its keep fast. Gusto calculates and remits South Carolina withholding and SUI automatically, files the quarterly returns, handles new hire reporting, and produces W-2s at year-end so nothing falls through the cracks.
Legal & Tax Disclaimer
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.