South Carolina New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- Apply for an EIN (Employer Identification Number) with the IRS online.
- The IRS will assign you a unique nine digit number to identify your business. To read more about applying for an EIN, read our help article, “How to Apply for an EIN.”
- Although it is not required, we recommend you enroll in the Electronic Federal Tax Payment System (EFTPS). You can register online for the EFTPS.
- You will be able to pay taxes and view payments made on your behalf with the Electronic Federal Tax Payment System (EFTPS).
- To find out more about the EFTPS, please read our article, “What Is EFTPS?“
State of South Carolina Tax Accounts:
- South Carolina new employers can register online at MyDORWAY.
- The SCBOS will allow you to obtain both your withholding account numbers for your state income taxes (SIT) and unemployment numbers for your state unemployment insurance (SUI).
- The South Carolina new employer SUTA UI for 2020 is 0.49% for 2021 which consists of the base rate + solvency surcharge. The state also assess a 0.06% Contingency Assessment Rate for new employers, but that rate is automatically calculated by Patriot and does not need to be included when entering your SUTA rate in the software. For more information, please visit the South Carolina Department of Employment and Workforce.
- Employers in South Carolina will receive a new State Unemployment Tax Assessment (SUTA) rate every year.
- To learn more about SUTA, please read our article, “What Is SUTA Tax?”
Setting Up Your New Employee:
- Fill out the required Form I-9 for employee verification for working in the USA.
- This is a two-part form. The first section is to be completed by the employee, and the second half is to be completed by the employer. To learn more, please read, “What Is Form I-9?”
- You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information please read, “What Should Be in an Employee File?”
- Employees need to fill out the federal Form W-4, Employee’s Withholding Certificate for federal and South Carolina income taxes.
- For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know.”
- Employees need to fill out the SC W4 South Carolina income taxes.
- This is a new form for South Carolina that began in January 2020, and all new employees are required to fill out this form for state withholding.
- If an employee hired after 2019 does not fill out the SC W4, the number of allowances for withholding purposes is zero. For more information about the SC W-4, please consult the SCDOR.
- South Carolina follows the federal minimum wage of $7.25 per hour.
- You will need to display the minimum wage poster for your employees, as required by law.
Once you have all the necessary information, you will be able to set up your payroll for your business.
You will want to keep all payroll records for at least three years. For more information, please read our help article, “What Employers Should Know About Employee Payroll Records.”
Let us know if you have any questions. We are here to help!
This is not an all-inclusive list. Please contact your federal, state and local governments for more new employer requirements.