South Carolina payroll tax and registration guide

Updated September 25, 2023

This article will cover:

• What information OnPay needs from you
• What state and local taxes and filings OnPay handles for South Carolina employers
• Where you can find the tax account numbers needed
• Paying employees in other states?

Why is this important?

The following information requests and registration instructions are required before you can use a payroll provider to run payroll. This is in compliance with state payroll tax regulations. Without this information, OnPay is unable to file or deposit any tax payments for your company, and will not be responsible for any resulting penalties or interest. Note: If this isn't the only state where you have employees, there will be a separate guide like this one for each state where you hire and pay workers. 

Let Middesk handle your state tax registrations (and more)

If you'd like help, our partner Middesk makes hiring employees and staying compliant with every state agency simple and easy.

• Register with every state agency to get the tax IDs you need within minutes
• Stay compliant as you grow by managing agency mail and notices in your dashboard
• Manage your government accounts in one place on Middesk's intuitive platform
• Foreign Qualify with the Secretary of State to create payroll tax accounts 

Learn more about Middesk→

What information OnPay needs from you

What state and local taxes and filings OnPay handles for South Carolina employers

Where you can find the tax account numbers needed

If you are an existing employer who has previously run payroll in the state of South Carolina, you likely already have the IDs and online accounts needed for OnPay to process your tax filings. 

If you are a new employer in South Carolina, you will need to register your business with the Department of Revenue and the Department of Employment and Workforce (DEW). This must be completed for OnPay to be able to file and pay your South Carolina taxes.

Withholding Tax Account Number, Letter ID, and Deposit Frequency

Existing South Carolina Employer: 

You can find your Withholding Tax Account Number, Letter ID, and Deposit Frequency on notices received from the South Carolina Department of Revenue. If you cannot locate this document or account number, please call the South Carolina Department of Revenue at (803) 896-1450 to request it.

New South Carolina Employer: Register with the South Carolina Department of Revenue 

• Register with the South Carolina Department of Revenue.
• Click on MyDORWAY to register your business.
• Make sure you have the required information listed under “You Will Need”.

Unemployment ID, Tax Rate and SOC Code

Existing South Carolina Employer: 

• You can find your Unemployment ID on the annual Tax Rate Notice received from the South Carolina Department of Employment and Workforce. It can also be found on your Quarterly Contribution and Wage Report. 
• Your Unemployment Tax Rate can also be found on the annual Tax Rate Notice in box 2. Employer contribution rates range between 0.06% and 5.40% for SUI, with a wage base of $14,000. 
• When entering your SUI rate into OnPay do so without the SC Administrative Contingency Assessment.

New South Carolina Employer: Register with the South Carolina Department of Employment and Workforce

• Go to our State Unemployment Insurance Tax System (SUITS) and click “Employers” under “Register for an Account”. The DEW has also provided video tutorials for this and other registrations.
• Once you complete the registration process you will immediately be assigned an account number.
• New employers have a rate of 0.49% for SUI, with a wage base of $14,000. 
• If you are not able to register online, you may access a paper copy of the Employer Status Report Registration Form (UCE-151). This form must be printed and submitted by mail to:

S.C. Department of Employment and Workforce

Employer Status Unit 

P.O. Box 995 

Columbia, SC 29202

Departmental Administrative Contingency Assessment (DACA) Rate

All South Carolina Employers: 

• The DACA Rate for most South Carolina employers is 0.06%. This rate can also be found on your annual Tax Rate Notice in box 3.

SOC (Standard Occupation Classification) Code

Beginning Q2 2024, South Carolina requires employers to report a SOC Code for every employee reported on the unemployment return, or the filing will be rejected. You can visit the South Carolina website for more information and to find the SOC Code descriptions. To add the code to your employee:

• Go to the employee's withholding tab
• Under South Carolina withholding, select the applicable code for the employee from the SOC Code drop-down menu

Paying employees in other states?

If you operate in multiple states or just have employees working from home across a state line, it's important to file the correct state forms for those workers. See what forms we file in the states where you pay employees.

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