Key figures
South Carolina payroll
2026, with sources
Withholding and unemployment insurance
Withholding is registered with the Department of Revenue through MyDORWAY and reconciled annually on Form WH-1606 by January 31, which must be filed even in quarters with nothing withheld while the account is open. For 2026 South Carolina taxes individuals at 1.99% on taxable income up to $30,000 and 5.21% above it, so withholding tables changed this year.
Unemployment insurance runs through the Department of Employment and Workforce. New employers pay 1.060% in 2026, a 1.000% base rate plus the 0.060% administrative contingency assessment, on the first $14,000 of each employee’s wages: about $148 per employee a year. There is no solvency surcharge for 2026.
Written terms and fast final pay
South Carolina’s Payment of Wages Act is stricter than most of its neighbors on paperwork. Each new employee must be told the normal hours and agreed wages in writing at hiring, and any reduction or change must be given in writing seven calendar days ahead. When anyone leaves, all wages are due within 48 hours or by the next regular payday, which may not exceed 30 days.
An example
A two-founder startup in Charleston hires its first two engineers. It registers for withholding and with DEW before the first payroll, reports both hires to the SC New Hire Reporting Program within 20 days, hands each an offer letter stating hours and pay, and, with four employees counting the founders, buys workers’ compensation coverage, which the Commission requires once a business regularly employs four or more people.
Deadlines
- Last day of the month after the quarterQuarterly contribution and wage report to DEWUCE-120
- January 31Annual withholding reconciliationForm WH-1606
- Within 20 days of the first day of workNew hire report
The federal baseline
This page covers what South Carolina adds. The federal rules underneath it apply here too.
Common questions
Do we need to give South Carolina hires anything in writing?
Yes. South Carolina’s Payment of Wages Act requires every employer to notify each employee in writing at hiring of the normal hours and agreed wages, either individually or by posting the terms at the workplace. Changes must be in writing at least seven calendar days before they take effect, except wage increases.
When is a final paycheck due in South Carolina?
Within 48 hours of separation, or by the next regular payday if that comes within 30 days. The rule applies whether the employee quit or was let go.
Payroll next door
- GAGeorgia payrollGeorgia payroll is flat 4.99% withholding for 2026 through the Department of Revenue and unemployment tax at 2.70% on $9,500 through the Department of Labor; there is no paid leave program or local wage tax.
- NCNorth Carolina payrollNorth Carolina payroll is flat 3.99% withholding on Form NC-4 and NC-5, unemployment insurance at 1.0% on $34,200 for new employers, workers’ comp from three employees counting officers, and E-Verify from 25.
How South Carolina compares
- No tax on wagesStates with no state income tax on wagesSouth Carolina: withholds state income tax. 9 of 51 states are on the list.
- Paid leave payrollStates with a paid leave or disability payroll programSouth Carolina: no state program. 16 of 51 states are on the list.
- Local payroll taxStates with city, county or district payroll taxesSouth Carolina: state-level only. 14 of 51 states are on the list.
Founder guides on this
- PeopleContractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.
- ComplianceFirst-year compliance calendar for a Delaware C-corpDelaware franchise tax, 1099s, the federal return, payroll filings, state annual reports and sales tax: the deadlines a young C-corp misses most, by month.
More of the South Carolina guide
- AccountingAccounting and state tax in South CarolinaCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in South CarolinaSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayablesPayables and contractors in South CarolinaPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- ComplianceCompliance and filings in South CarolinaRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in South CarolinaCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.