South Carolina Wage and Payroll Tax Facts
February 02, 2024
Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of South Carolina.
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Table of Contents
- South Carolina Minimum Wage Rates
- South Carolina State Income Tax (SIT) Rates
- South Carolina State Unemployment Insurance (SUI) Rates
- South Carolina State Disability Insurance (SDI) Rates
- Miscellaneous South Carolina Tax Information
- South Carolina Employer Registration
- Additional South Carolina Payroll Tax Resources
The Palmetto State doesn't have a specific minimum wage requirement or law for its businesses. Instead, it applies the rates required by the federal government in the Fair Labor Standards Act (FLSA) where appropriate.
When it comes to processing payroll, South Carolina-based organizations must handle the following taxes in addition to those required by the federal government:
- Personal Income (a.k.a. State Income Tax)
- State Unemployment Insurance (SUI)
The below information was last updated January 30, 2024. It is not intended as legal or tax advice.
South Carolina Minimum Wage Rates
|
Wage Type |
South Carolina Rates* |
Federal Rates |
|
Minimum Wage |
N/A |
$7.25 |
|
Tipped Minimum Wage |
N/A |
$2.13 |
|
Actual Tip Credit |
N/A |
$5.12 |
*The state doesn't have a minimum wage law, so the federal rates under the FLSA are used when applicable.
South Carolina State Income Tax (SIT) Rates
South Carolina SIT is progressive, meaning it adjusts based on the income level of the employee paying the tax:
| Income Tax Bracket [Over X] - [But not over Y] |
2024 Income Tax Rate |
| $0 - $3,460 | 0.0% |
| $3,460 - $17,330 | 3.0% of excess over $3,460 minus $103.80 |
| $17,330 or greater | 6.4% of excess over $17,330 minus $693.02 |
|
Additional South Carolina SIT Details |
|
|
Supplemental Withholding Computation |
6.4% |
|
Valid Filing Statuses |
|
|
Exemptions |
Number of allowances |
|
Form W-4 |
SC W-4 |
|
Reconciliation Frequency |
Annual |
South Carolina State Unemployment Insurance (SUI) Rates
SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.
|
South Carolina SUI Tax Details |
|
|
Taxable Wage Base |
$14,000 |
|
Employee Subject to Tax |
No |
|
Rates for Experienced Employers |
0.06% - 5.46% |
|
Rates for New Employers |
0.41% |
|
Effective Period |
Calendar Year |
|
Voluntary Contributions Allowed |
No |
|
Contingency Assessment Rate |
0.60% |
South Carolina State Disability Insurance (SDI) Rates
SDI benefits are funded by employees through mandatory payroll deductions from each paycheck. South Carolina, however, doesn't require employers to collect an SDI tax.
Miscellaneous South Carolina Tax Information
Reciprocal Agreement(s)
Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. South Carolina currently has no reciprocal agreements with any other states.
This doesn’t mean, however, that interstate workers living in South Carolina pay double. It’s federally illegal for two states to tax the same income. In most cases, the employee’s work state will credit or refund them at tax time based on the taxes they owe their home state. If the tax rates differ, the employee must cover the difference.
Paid Sick Leave (PSL) Taxes
The state of South Carolina doesn’t require employers to collect PSL taxes, nor does the state have a program providing such leave to employees.
Paid Family and Medical Leave (PFML) Taxes
The state of South Carolina doesn’t require employers to collect PFML taxes, nor does the state have a program providing such leave to employees.
South Carolina Employer Registration
The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact the Department of Revenue for withholding tax topics and the Department of Employment and Workforce for unemployment tax topics.
|
Registration Details |
Department of Revenue |
Department of Employment and Workforce |
|
Phone |
(803) 896-1350 | (803) 737-2400 |
|
Online Registration |
MyDORWAY Homepage | DEW Employer Registration Portal |
|
Registration Form |
Form SCDOR-111 | Form UCE-151 |
|
Registration Instructions |
Online and paper registration options are available. Account numbers will be issued during the online process or within 7-10 business days via mail. | Online and paper registration options are available. Account numbers will be issued within 5-7 days via the online process or 1-2 weeks via mail. |
|
Employer Self-Service Login |
MyDORWAY Homepage | DEW Login Page |
Additional South Carolina Payroll Tax Resources
- South Carolina Business One Stop
- Department of Employment and Workforce Employer Resources
- Department of Employment and Workforce Employer Self-Service
This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.
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