South Carolina Payroll Tax Withholding Requirements for Employers

South Carolina employers must withhold state income tax from employee paychecks and pay employer unemployment taxes. Withholding exemptions are based on the federal Form W-4. There are no local income taxes.

What are my state payroll tax obligations?

South Carolina requires employers to withhold state income tax from employees' paychecks, in addition to employer-paid unemployment taxes. The federal W-4 form is used for South Carolina's income tax withholding exemptions.

South Carolina does not have any reciprocal agreements with any other states.

Local taxes

There are no local income taxes in South Carolina.

How do I register as an employer?

South Carolina employers can register once, using the online registration tool One Stop, for both income tax withholdings and unemployment insurance.

What are the payroll tax filing requirements?

Income tax withholding

Filing and payments for unemployment taxes can be conducted online using the South Carolina Business One Stop tool.

Anything else I need to know?

South Carolina does not mandate overtime pay.

Where can I find more info?

 
• South Carolina Department of Revenue - state income tax withholdings.
 
• South Carolina Department of Employment and Workforce - unemployment insurance.

Frequently asked questions

Does South Carolina require employers to withhold state income tax?

Yes. South Carolina requires employers to withhold state income tax from employees' paychecks, in addition to employer-paid unemployment taxes. The federal W-4 form is used for South Carolina's income tax withholding exemptions.

Are there local income taxes in South Carolina?

No. There are no local income taxes in South Carolina. South Carolina also does not have any reciprocal agreements with any other states.

Do I have to register separately for withholding and unemployment insurance?

No. South Carolina employers can register once, using the online registration tool One Stop, for both income tax withholdings and unemployment insurance.

Which withholding forms do South Carolina employers file, and when?

Employers file Form SC WH-1605, Quarterly Withholding Tax Return, together with Form SC WH-1601, Quarterly Withholding Tax Payment, both due at the end of the month immediately following a calendar quarter end — April 30, July 31, October 31 and January 31. Form SC WH-1606, the Fourth Quarter/Annual Reconciliation Return, is filed annually by the last date of February. Filing and payments can be submitted online using South Carolina's MyDORWAY tool.

When is the South Carolina unemployment wage report due?

Form SC UCE 120/101, Quarterly Contribution and Wage Report, is due quarterly at the end of the month immediately following a calendar quarter end — April 30, July 31, October 31 and January 31. Filing and payments can be conducted online using the South Carolina Business One Stop tool.