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A reference for employers on South Carolina state income tax withholding, employer-paid unemployment insurance and new hire reporting. Summarizes the wage base, filing rules and the absence of local income tax.
South Carolina employers must register for and remit state income tax withholding, report new hires within 20 days, and pay employer-only unemployment insurance on the first $14,000 of each employee's wages. There is no local personal income tax.
Last updated: 09/18/2025
South Carolina levies a state individual income tax with a top marginal rate that was reduced to 6.0% for Tax Year 2025 under the state budget; rate reductions are phased per statute and budget. Employers must register for and remit state withholding, report new hires, and pay employer-only state unemployment insurance (SUI) contributions, to which a taxable wage base applies.
South Carolina has no statewide paid sick-leave mandate for private employers - state employees have separate leave rules - and follows the federal Fair Labor Standards Act (FLSA) for overtime and tipped-employee rules unless federal rules are superseded.
South Carolina individual income tax uses state tax tables. The top marginal rate was reduced to 6.0% for tax year 2025, effective per the state budget and legislative proviso. Employers should use SCDOR withholding guidance for payroll withholding.
Report newly hired or rehired employees to the South Carolina New Hire Reporting Center within 20 days of hire.
Follow SCDOR withholding rules for resident and nonresident employees; withholding is based on where wages are earned and on residency rules. Employers must register with SCDOR for withholding accounts.
There is no statewide private-sector paid family and medical leave as of this update. Public employees participate in state retirement systems, and state HR leave policies apply to state agencies.
South Carolina does not levy local personal income taxes such as municipal PITs. Localities do, however, impose business licenses, property taxes and local sales/use taxes - check local taxing authorities for employer business license or business privilege requirements. For payroll withholding of personal income tax, state withholding rules apply.
South Carolina follows the federal FLSA for overtime: nonexempt employees must receive 1.5 times their regular rate for hours over 40 in a workweek unless exempt under FLSA tests. There is no separate South Carolina overtime statute that relaxes federal protections, so employers must apply the stricter applicable law.
South Carolina does not have a separate higher state minimum wage; employers must follow the federal minimum wage and tipped-employee rules where applicable. Under federal rules, which apply in South Carolina, employers may use the federal tip credit and pay a direct cash wage as low as $2.13/hr for tipped employees, provided tips bring the total to at least the federal minimum wage of $7.25/hr. Employers must follow DOL guidance on tip pool and tip-credit recordkeeping.
South Carolina generally prohibits employment of minors under age 14 except for limited exemptions under the state child-labor statute, and regulates hours for 14-15 and 16-17 year olds, with school-day and non-school-day limits. These state rules operate alongside FLSA youth-employment provisions - apply the stricter rule when in doubt, and track required work permits or documentation where applicable.
South Carolina has no statewide law requiring meal or rest breaks for private sector employees. Federal guidance controls compensability of short breaks; short breaks are typically paid. Employers should document break policies and follow FLSA guidance on compensable time.
Important: under South Carolina law an employer must pay all wages due within 48 hours of separation or by the next regularly scheduled payday, not to exceed 30 days. Employers must also pay wages on regularly scheduled paydays and provide itemized statements of pay. See the S.C. Code and LLR guidance.
Employers must keep employee wage and withholding records and provide itemized pay statements per the SC Payment of Wages Act. Maintain payroll and time records per FLSA requirements and state law. Post required workplace notices and follow any special posting rules for state agencies or contracts.
Yes. South Carolina levies a state individual income tax using state tax tables, and the top marginal rate was reduced to 6.0% for Tax Year 2025. Employers must register with the SC Department of Revenue for withholding accounts and follow SCDOR withholding guidance for resident and nonresident employees.
The South Carolina SUI taxable wage base is $14,000 per employee. Employers pay SUI — an employee contribution is not required in South Carolina — and file quarterly wage reports and remit contributions through DEW's SUITS system.
Report newly hired or rehired employees to the South Carolina New Hire Reporting Center within 20 days of hire.
Under South Carolina law, an employer must pay all wages due within 48 hours of separation or by the next regularly scheduled payday, not to exceed 30 days.
No. South Carolina does not require private employers to provide paid sick leave or PTO by state law — employers set their own policies and must follow them — and there is no statewide law requiring meal or rest breaks for private sector employees. South Carolina follows the federal FLSA for overtime and tipped-employee rules.