South Carolina Employer Requirements: DEW, Withholding, E-Verify and New Hires

Your first employee changes what your South Carolina business has to track. A single-owner LLC mostly deals with formation paperwork. Once you pay wages, you take on unemployment tax, state income tax withholding, new hire reporting and E-Verify, each with its own agency, form and deadline. This guide covers what each requirement is, how it is calculated, and where to confirm the details before your first payroll.

This is informational content, not legal or tax advice. Payroll rules sit where federal and state law overlap, and your situation may differ. Have a qualified attorney or CPA review your setup before you run payroll.

Employer Requirements at a Glance

Requirement	Agency	Key number or timing	Where to confirm
Unemployment tax (SC unemployment tax)	SC Department of Employment and Workforce (DEW), through SUITS	$14,000 wage base; 1.06% new employer rate for 2026	DEW
Income tax withholding (SC withholding tax)	SC Department of Revenue (SCDOR)	Form WH-1606, quarterly or annual schedule	dor.sc.gov
New hire reporting	SC Department of Social Services (SCDSS)	Within 20 days of the hire date	newhire.sc.gov
E-Verify	Enforced by LLR	Within 3 business days of the hire date	LLR
Minimum wage	Federal rule applies	$7.25 per hour; no state minimum wage	U.S. Department of Labor
Workers' compensation	Private carrier	Required at 4 or more employees	Your insurance carrier

Unemployment Tax Through DEW

The South Carolina Department of Employment and Workforce (DEW) runs the state unemployment insurance program. You register as an employer, then report wages and pay unemployment tax through SUITS, DEW's online system. Four numbers drive the calculation:

• Taxable wage base: $14,000 per employee per calendar year. Wages above that amount are not taxed for unemployment purposes.
• New employer rate for 2026: 1.06%, which is a 1.0% base rate plus a 0.06% contingency assessment.
• Rate range: 0.06% to 5.46% for employers in general.
• Solvency surcharge: none in 2026.

Here is a simple illustration. Five employees who each earn at least $14,000 in the year produce $742 in unemployment tax at the 1.06% new employer rate (5 × $14,000 × 1.06%). Your assigned rate can differ from the new employer rate once DEW has your history, so confirm your rate and filing frequency with DEW. Also confirm how soon after you start paying wages you must register.

State Income Tax Withholding

Withholding means you take South Carolina income tax out of each employee's pay and remit it to the South Carolina Department of Revenue (SCDOR). Once you withhold the money, it belongs to the state, so treat remittance deadlines as firm.

South Carolina's individual income tax is graduated. For tax year 2026, the SCDOR lists two brackets: 1.99% on income under $30,000, and 5.21% on income of $30,000 and above, less a $966 adjustment. Brackets are adjusted each year for inflation, so use the current SCDOR withholding tables rather than a rate printed in an older guide.

You report and remit withholding on Form WH-1606. Depending on the amount you withhold, SCDOR assigns either a quarterly or an annual filing schedule. Confirm your schedule and due dates at dor.sc.gov, and confirm the steps to register your withholding account there as well.

South Carolina Payroll Tax: The Full Picture

Most people searching for south carolina payroll tax want the complete list. For a new employer with W-2 staff, expect these obligations:

• Federal income tax withholding and employee and employer FICA (Social Security and Medicare), reported to the IRS.
• Federal unemployment tax (FUTA), also reported to the IRS.
• South Carolina income tax withholding, remitted to SCDOR on Form WH-1606.
• South Carolina unemployment tax, reported to DEW through SUITS.
• Workers' compensation premiums, once you reach four or more employees.

New Hire Reporting to SCDSS

South Carolina requires employers to report each newly hired employee to the South Carolina Department of Social Services (SCDSS) within 20 days of the hire date. You file through the state's new hire reporting site at newhire.sc.gov. Have the employee's identifying information ready before you start. Confirm with SCDSS whether any exceptions apply to your situation.

This is one of the easiest deadlines to miss because it arrives while you are still getting the new hire onboarded. Put the 20-day window on the same calendar as the employee's first day.

E-Verify Is Required for Private Employers

South Carolina law (S.C. Code Section 41-8-20) requires all private employers to verify each new hire's work eligibility through E-Verify within 3 business days of the hire date. The Department of Labor, Licensing and Regulation (LLR) enforces the requirement. The rule applies to all private employers, so a business with a single employee is covered.

Enforcement follows a set progression:

• First violation: one year of probation, with quarterly reports to LLR during that period.
• Repeat violations: LLR suspends the employer's imputed state employment license for 10 to 30 days.

Enroll in the federal E-Verify program before your first hire so the 3-day clock does not catch you without a working login.

South Carolina Minimum Wage

South Carolina has no state minimum wage. The federal minimum wage of $7.25 per hour is the floor for employers covered by the federal Fair Labor Standards Act. Coverage depends on factors such as annual business volume and the type of work, and some workers are exempt. Confirm which federal rules apply to your business with the U.S. Department of Labor before you set pay rates.

Labor Law Posters

Searches for sc labor law posters often lead to one-size-fits-all printable sets. Be cautious with those. Posting requirements come from both federal and state sources, and they change. Federal posters, such as the Fair Labor Standards Act poster, apply to covered employers regardless of state. For South Carolina postings, confirm the current requirements with LLR and DEW, then display everything in a common area where employees see it.

Right-to-Work Rules and Workers' Compensation

South Carolina is a right-to-work state. Employees cannot be required to join a union or pay union dues as a condition of employment.

Workers' compensation coverage is required once you have four or more employees. Confirm the coverage rules with your insurance carrier and with the South Carolina Workers' Compensation Commission.

Local Licenses and Other Registrations

South Carolina has no general statewide business license. Registering your entity with the Secretary of State does not license you to operate. Check these local and agency requirements next:

• Cities: most cities levy a local business license tax.
• Counties: only nine counties levy one: Beaufort, Charleston, Dorchester, Horry, Jasper, Marion, Orangeburg, Richland and Sumter.
• License year: May 1 to April 30, with payment due April 30. Renewals are handled at localblrenewal.com.
• DBA names: South Carolina has no state DBA filing. List the trade name on your local business license and on your SCDOR and IRS registrations; there is no separate county or municipal DBA filing.
• Annual reports: a standard LLC files no annual report with the Secretary of State. Check your entity details at sos.sc.gov.
• Food and contractor work: retail food permits come from the South Carolina Department of Agriculture. Commercial contractor licenses apply to work above $10,000, and residential specialty registration applies above $500. Confirm these thresholds with LLR.

Your Hiring Checklist

1. Get your federal Employer Identification Number (EIN) from the IRS.
2. Register with SCDOR for withholding and with DEW for unemployment tax, and confirm the timing for each.
3. Obtain the local business license where you operate.
4. Enroll in E-Verify before the first hire.
5. Calendar the 3-business-day E-Verify deadline, the 20-day new hire report, your WH-1606 schedule and your DEW filings.
6. Bind workers' compensation coverage before you reach four employees.

For help with setup questions, the South Carolina Small Business Development Centers can walk you through the basics. The SBA South Carolina district page lists regional resources. For payroll structure, multi-state hiring or any employee classification question, speak with a qualified attorney or CPA.

Disclaimer: This article is informational only and is not legal, tax or employment advice. Rates, wage bases, deadlines and agency procedures change. Confirm current requirements with the agencies named above, and consult a qualified attorney or CPA before acting on anything in this guide.