South Carolina payroll taxes for employers (2026)
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The SC Department of Employment and Workforce (DEW) charges new employers 1.06% on the first $14,000 of each worker's 2026 wages, a 1.000% base rate plus the 0.060% DACA add-on (DEW tax rate information, checked October 2026), and South Carolina withholds state income tax at 0%, 3% and 6%. The rule that trips up employers is final pay: when you end someone's employment, wages are due within 48 hours or by the next regular payday, and never later than 30 days.
- SUTA wage base
- $14,000
- New employer SUTA rate
- 1.06% total
- State income tax
- Yes
- Minimum wage
- $7.25
On this page
What makes South Carolina payroll different
South Carolina has no state minimum wage law, no state paid leave tax and no statewide pay frequency rule, so it looks light. The obligations that do exist are specific, and a few of them carry deadlines measured in hours or headcount.
- The 48-hour rule: SC Code 41-10-50 covers any separation by the employer, for any reason. Pay within 48 hours or on the next regular payday, with 30 days as the outer limit. The statute does not separately address employees who quit.
- Two ways to read your rate: DEW quotes total rates that include the 0.06% DACA add-on, from 0.06% (class 1) to 5.46% (class 20), with new employers in class 30 at 1.06%. The US Department of Labor table shows base rates only, 0.00% to 5.40% with a 1.00% new rate, so a provider quoting 1.00% is not wrong, just incomplete. DEW reports no solvency surcharge for 2026.
- Written pay terms at 5 employees: there is no minimum pay frequency in statute. You pay at the regular time and place you set, and once you have 5 or more employees you must give written notice of pay terms at hire.
- Workers comp at 4 employees: coverage is required when you regularly employ 4 or more people in South Carolina, counting part-time workers and family. Employers with annual payroll under $3,000 are exempt, along with casual and agricultural work and some other categories. The market is private.
- PEOs need a state license: SC Code 40-68-30 requires PEOs to be licensed by the SC Department of Consumer Affairs. We did not find a public list, so ask the PEO for its license number.
Pay floors are federal: $7.25 an hour and a $2.13 tipped cash wage. We found no local income tax, though that was not checked against an official list.
South Carolina employer payroll facts at a glance
| Item | South Carolina rule or rate | Official source |
|---|---|---|
| SUTA taxable wage base (2026) | $14,000 | source |
| New employer SUTA rate | 1.06% total (rate class 30: 1.000% base + 0.060% DACA) | source |
| New employer rate, construction | none listed (class 30 applies) | |
| SUTA rate range | 0.06% total (class 1: 0.00% base + 0.06% DACA) to 5.46% total (class 20: 5.40% base + 0.06% DACA) | |
| Surcharges and admin fees | DACA 0.06% included in totals; no solvency surcharge for 2026 | |
| 2027 rates published? | no | |
| Unemployment agency | SC Department of Employment and Workforce (DEW) | source |
| State income tax withholding | Yes. Graduated, 2026 formula (WH-1603F rev 11/4/25): 0% under $3,640, 3% to $18,230, 6% at $18,230 and above; $5,000 per allowance; standard deduction 10% of wages up to $7,500. Supplemental rate not stated. | source |
| Paid leave or disability programs | None. No state disability or paid family leave payroll program found for this state (absence not confirmed on an official page). | |
| Minimum wage 2026 | $7.25 (no state minimum wage law; federal applies) | source ; source |
| Tipped cash wage 2026 | $2.13 (federal) | |
| Minimum wage 2027 | none (no state law) | |
| New hire reporting | Within 20 days after the employee's first day of work; report to SC DSS at newhire.sc.gov | source |
| Pay frequency rule | No minimum frequency in statute; pay on the regular time and place established by the employer; employers with 5+ employees must give written notice of pay terms at hire | |
| Final paycheck rule | Separation by employer for any reason: within 48 hours or by the next regular payday, not more than 30 days (SC Code 41-10-50); statute does not separately address voluntary quits | |
| Workers comp required | 4+ employees regularly employed in SC (part-time and family count); exempt if annual payroll under $3,000; other exemptions (casual, agricultural, etc.). Monopolistic: no | source |
| Local income taxes | no (no local income tax identified; not checked against an official list) | |
| PEO license or registration | yes, license from SC Department of Consumer Affairs (SC Code 40-68-30); public list URL not found |
Checked October 16, 2026 against the official sources linked in each row.
Registering a South Carolina employer account
- Get a federal EIN.
- Register for unemployment insurance with DEW through its State Unemployment Insurance Tax System (SUITS) at dew.sc.gov/employers/suits. DEW will place you in rate class 30.
- Register for withholding with the SC Department of Revenue (dor.sc.gov/tax/withholding) and use the 2026 WH-1603F formula.
- Report new hires within 20 days after the first day of work to the SC Department of Social Services at newhire.sc.gov. SC Business One Stop (scbos.sc.gov) lists these hiring steps in one place.
- Arrange workers comp before you reach 4 regular employees.
- If you will have 5 or more employees, prepare a written pay-terms notice for each new hire.
For the federal side of a first hire, see hiring your first employee.
South Carolina payroll tax calculator: $50,000 worked example
At the 1.06% new employer rate, South Carolina SUTA on one worker tops out at $148.40 a year because the wage base is only $14,000.
| Line | How it is figured | Annual cost |
|---|---|---|
| Social Security | 6.2% x $50,000 | $3,100.00 |
| Medicare | 1.45% x $50,000 | $725.00 |
| FUTA | 0.6% x $7,000 | $42.00 |
| South Carolina SUTA | 1.06% x $14,000 wage base | $148.40 |
| Total employer payroll tax | Sum of the lines above | $4,015.40 |
Source: IRS Publication 15 (2026); SC DEW tax rate information. Checked Oct 2026.
An employer in the worst class, 5.46%, would pay $764.40 in SUTA and $4,631.40 in total. On the paycheck, the employee has $3,825.00 of FICA withheld. A rough state withholding estimate for a single employee claiming no allowances: the standard deduction is 10% of wages, capped at $7,500, so $50,000 minus $5,000 leaves $45,000. Then 3% x ($18,230 minus $3,640) = $437.70, plus 6% x ($45,000 minus $18,230) = $1,606.20, for $2,043.90 a year. Treat that as an estimate; the WH-1603F formula is the authority, and each allowance lowers it by taking $5,000 off taxable wages. Run other salaries below and compare rates on the 2026 SUTA list.
South Carolina payroll services and PEOs
When you compare providers, check that the SUTA rate entered is the 1.06% DEW total, not the 1.00% base, and that termination pay can run off-cycle so you can meet the 48-hour deadline. For a PEO, ask for its Department of Consumer Affairs license.
Start with our payroll software rankings and the fee breakdown in payroll pricing. The PEO comparison covers providers that bundle workers comp and benefits. Rock Hill sits in the Charlotte metro and North Augusta faces Augusta across the river, so for staff who work over the line see North Carolina and Georgia, and the 2026 minimum wage table for hourly floors.
Frequently asked questions
What is the South Carolina unemployment tax rate for new employers in 2026?
How much does a $50,000 employee cost in South Carolina payroll taxes?
What are South Carolina's 2026 withholding rates?
When is a final paycheck due in South Carolina?
Do PEOs need a license in South Carolina?
Does South Carolina have a minimum wage?
Sources (9)
- SC Department of Employment and Workforce: Tax rate information (checked Oct 16, 2026)
- SC Department of Employment and Workforce: SUITS employer registration (checked Oct 16, 2026)
- SC Department of Revenue: Withholding (checked Oct 16, 2026)
- SC Business One Stop: Hiring employees (checked Oct 16, 2026)
- SC Workers' Compensation Commission: Employer FAQs (checked Oct 16, 2026)
- US Department of Labor: Significant provisions of state UI laws, July 2026 (checked Oct 16, 2026)
- US Department of Labor: State minimum wage laws (checked Oct 16, 2026)
- US Department of Labor: Minimum wages for tipped employees by state (checked Oct 16, 2026)
- IRS: Publication 15 (Circular E), 2026 (checked Oct 16, 2026)
This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.