South Carolina New Employer Registration: Step-by-Step Guide

Last reviewed: July 2026

When you hire your first employee in South Carolina, you trigger a series of registration requirements at the federal and state level. Missing any of these steps can result in penalties, delayed payroll, and compliance headaches. This guide walks you through everything, in order.

Registration Overview

Here's a checklist of what every new South Carolina employer needs:

• ☑ Federal Employer Identification Number (EIN)
• ☑ South Carolina state tax registration (South Carolina Department of Revenue)
• ☑ South Carolina SUI account (South Carolina Department of Employment and Workforce)
• ☑ Workers' compensation insurance
• ☑ New hire reporting setup
• ☑ Payroll system or software

Step 1: Get Your Federal EIN

Your Employer Identification Number (EIN) is your federal tax ID. You need it for federal tax filings, state registrations, opening a business bank account, and running payroll.

Apply online at IRS.gov/EIN. It's free and you receive your EIN immediately.

Step 2: Register with South Carolina Department of Revenue

Visit MyDORWAY at dor.sc.gov to register for a state employer withholding account. This allows you to withhold South Carolina state income tax from employee paychecks and remit it to the state. Once employees are on payroll, have each one complete an SC W-4, South Carolina's own withholding certificate, in addition to the federal Form W-4. Our W-4 helper walks through both forms if you're setting up your first few employees.

From the Payroll Desk

Don't wait until your first payroll to register. State registrations can take several business days to process. Start the registration process as soon as you know you'll be hiring.

Step 3: Register for SUI

Register for a State Unemployment Insurance account through the South Carolina Department of Employment and Workforce. You'll be assigned:

• An employer account number
• Your initial SUI rate (1.06% for new employers in 2026, made up of a 1.00% base rate plus a 0.06% contingency assessment)
• Quarterly filing requirements

SUI is an employer-paid tax on the first $14,000 of each employee's wages in 2026. Established employers are rerated annually based on claims history, with rates ranging from 0.06% to 5.46%. See our South Carolina SUI Rates 2026 guide for details, or use the paycheck calculator to see how SUI and withholding affect a sample payroll.

Step 4: Workers’ Compensation Insurance

South Carolina requires workers' compensation insurance for employers who regularly employ four or more people, full-time or part-time, with an annual payroll above $3,000. Casual labor, most agricultural work, and a short list of other categories are exempt. The South Carolina Workers' Compensation Commission oversees compliance and can confirm whether an exemption applies to your business.

Coverage is available through private insurance carriers writing in South Carolina. Compare quotes across a few carriers, since rates vary by industry classification and claims history, and keep your certificate of coverage on file in case DEW or a client asks for proof.

Step 5: New Hire Reporting

Federal and South Carolina law require you to report every new hire within 20 days of their start date. This information is used to enforce child support orders and prevent fraud.

Most states allow online reporting through their new hire reporting website. See our New Hire Reporting guide for details.

Step 6: Set Up Payroll

With every account open, you're ready to run payroll. Decide whether you'll process it yourself, hand it to a bookkeeper, or use payroll software that files SCDOR and DEW returns automatically. For a business with a handful of employees, software that handles both agencies without manual entry usually pays for itself in time saved during quarterly filing season. Whatever route you choose, run one or two test paychecks against the South Carolina paycheck calculator before your first live payroll, and check your federal deposit obligations with our Form 941 guide.

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 register for an SUI account with the South Carolina Department of Employment and Workforce. Complete all three before your first payroll.

When must I register as an employer in South Carolina?

Register as soon as you know you will hire your first employee. State registrations can take several business days to process, and you need your account numbers in hand before your first payroll deposit or filing is due.

Do I need workers' compensation in South Carolina?

Most South Carolina employers with four or more employees, full-time or part-time, must carry workers' compensation insurance. The South Carolina Workers' Compensation Commission oversees compliance and can confirm whether an exemption applies to your business.

What is an EIN and how do I get one?

An Employer Identification Number (EIN) is a federal tax ID from the IRS. Apply online at irs.gov; it's free and you receive it immediately.