Navigating South Carolina Payroll Taxes
When managing payroll taxes, federal requirements are top of mind, but state-level compliance is just as crucial for
your business.
This guide walks you through everything you need to know about South Carolina payroll taxes, including the key forms, filing requirements, due dates, and more.
South Carolina New Hire Reporting
Employers in South Carolina must report newly hired and rehired employees to the South Carolina New Hire Reporting Program, administered by the Department of Social Services.
This ensures compliance with state and federal regulations, helping enforce child support, prevent fraud, and maintain accurate employment records.
Who must report
All South Carolina employers—whether businesses, nonprofits, or government agencies—must report new hires and any rehired employees after a 60-day break in employment.
What to report
- Employee Details: Name, address, Social Security Number
- Employer Details: Business name, address, Federal Employer Identification Number (FEIN)
- Hire Date: Date the employee was hired or rehired
When to report
Reports must be submitted within 20 days of the employee’s hire or rehire date.
How to report
You can submit your new hire reports using the following methods:
1. Online (Recommended):
- Visit the South Carolina New Hire Reporting Portal.
- Register with your FEIN and contact details.
- Complete and submit the new hire form.
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2. Fax:
- Download the New Hire Reporting Form (PDF).
- Complete the form and fax it to (803) 898-9100.
- Keep a copy of the fax confirmation for your records.
3. Mail:
Complete the New Hire Reporting Form (PDF) and mail it to:
South Carolina Department of Social Services
Child Support Services Division
Attn: New Hire Reporting Program
PO Box 1469
Columbia, SC 29202-1469
Use certified or trackable mail for proof of delivery.
Penalties:
- Employers who fail to report newly hired or rehired employees may face a penalty of $25 per employee not reported.
- If the failure is part of a conspiracy between the employer and employee (to not supply required information or report false/incomplete information), the penalty can be $500 per offense.
New Hire Corrections
- If you’ve made an error in your New Hire Report (e.g., wrong employee details or mistakenly reported a hire), you can file a correction by submitting an updated report with the correct information.
- South Carolina allows you to make corrections through the New Hire Reporting Portal. If you need to remove an incorrectly reported hire, you can follow the specific instructions provided by the portal.
South Carolina Withholding Forms (WH-1605 and WH-1606)
South Carolina employers must ensure proper filing of withholding forms to remain compliant with state payroll tax requirements.
The purpose of withholding forms is to report the amount of state income tax that has been deducted from employees' wages and to ensure the timely remittance of these taxes to the state.
Who Must File
All employers in South Carolina, regardless of business size, must file withholding forms. This includes businesses, nonprofit organizations, and government agencies that employ workers subject to South Carolina state income tax.
Even if no tax is withheld, you must still file these forms on time if you have an active withholding tax account with the SCDOR. Failure to file can result in penalties.
Form Types
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WH-1605
This form is used by employers to report and remit state income tax withheld from employees' wages for the first three quarters of the tax year.
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WH-1606
The WH-1606 form is used to report and remit state income tax withheld for the 4th quarter and for the
annual reconciliation.
What to Report
- Employer information (name, address, FEIN)
- Total wages paid during the quarter
- Total state income tax withheld from employees
- Adjustments, if any (like previous overpayments or credits)
When to File
The SC withholding forms are filed quarterly. The filing deadlines are as follows:
- Q1 (Jan-Mar): Due April 30
- Q2 (Apr-Jun): Due July 31
- Q3 (Jul-Sep): Due October 31
- Q4 (Oct-Dec): Due January 31 of the following year
When to pay the tax due?
- For WH-1605, tax payments are due by the 15th of the month following the end of the quarter/i.e., April 15th for Q1, July 15th for Q2, and October 15th for Q3.
- For WH-1606, the tax payments are due by January 31.
How to File
You have several filing options to submit the withholding tax forms to the SCDOR:
1. Online (Preferred):
- Visit the SCDORWAY Portal (https://mydorway.dor.sc.gov/) to file online.
- Register for an account if you haven’t already.
- Complete the WH-1605 or WH-1606 forms and submit them electronically, along with any required payments.
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2. By Mail:
- Download the required withholding tax forms from the SCDOR website.
-
Complete the forms and mail them to:
South Carolina Department of Revenue
Withholding Tax Division
PO Box 125
Columbia, SC 29214-090 - Payment by check can be included with the mailed form.
Keep a copy of the completed form and your payment check/money order for your records.
Penalties:
Employers in South Carolina must file and pay withholding taxes on time using Form WH-1605 (Quarterly Return) Form WH-1606 (Annual Reconciliation). Missing deadlines or underpaying can lead to significant penalties as per
South Carolina Code Title 12, Chapter 54.
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If You File Late
If you don’t file your withholding return by the due date, you may be charged a penalty of 5% of the unpaid tax for each month late, up to a maximum of 25%.
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If You Pay or Deposit Late
If you file on time but fail to pay the withheld tax by the due date, the state adds 0.5% of the unpaid amount per month, up to 25% total.
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If You Fail to Withhold or Deposit Properly
Employers who fail to withhold or deposit state income taxes from employee wages can face an additional penalty between $10 and $1,000, depending on the severity of the violation.
Withholding Corrections
- If you’ve made a mistake on your quarterly WH-1605 or WH-1606 filings (e.g., over/underreported wages or tax withheld), you must file an amended form.
- The state allows you to correct these filings through the South Carolina Department of Revenue’s online portal or by submitting an amended paper form.
- Amended filings can also include adjustments to previous payments if taxes were underpaid or overpaid.
South Carolina Unemployment Insurance (UI) Reporting — Form UCE-101
The UCE-101 form is used by South Carolina employers to report unemployment contributions to the Department of Employment and Workforce (DEW).
This ensures that the state’s unemployment insurance fund is accurately funded, helping maintain benefits for employees who are out of work.
Who Must File
All South Carolina employers who have one or more employees must file the UCE-101 form.
This includes businesses of all sizes, nonprofit organizations, and government agencies that are required to report and pay unemployment insurance contributions.
You must file Form UCE-101 even if you have no contributions due for the quarter.
Taxable Wage Base & Rates
The SUI tax is calculated based on a specific wage base and your assigned tax rate.
-
Annual Wage Base
For 2025, the South Carolina unemployment insurance taxable wage base is $14,000 per employee. Any wages above this threshold are not taxed for unemployment insurance purposes.
-
Contribution Rate
Contribution rates are assigned annually by the South Carolina Department of Employment and Workforce (SCDEW) and vary depending on the employer’s experience rating.
What to Report
Employers must report the following on the UCE-101 form:
- Employee wages: Total wages paid to employees during the reporting period.
-
Employer details: Employer’s name, address, and South Carolina State Unemployment Insurance (SUI)
account number. - Quarterly report data: Total wages subject to unemployment insurance, along with the contribution owed.
When to File
The UCE-101 form is filed quarterly. The filing deadlines are as follows:
- Q1 (Jan-Mar): Due April 30
- Q2 (Apr-Jun): Due July 31
- Q3 (Jul-Sep): Due October 31
- Q4 (Oct-Dec): Due January 31 of the following year
How to File
Employers have multiple options for filing the UCE-101 form:
1. Online (Recommended):
- Visit the South Carolina Department of Employment and Workforce (DEW) Employer Portal.
- Register or log in to your account.
- Complete the UCE-101 form with employee wages and other required details.
-
Submit the form online. This is the fastest and most accurate method, reducing errors and ensuring
timely submission.
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2. By Mail:
- Download the UCE-101 form from the DEW website.
- Fill out the required employer and wage details.
-
Mail the completed form to:
South Carolina Department of Employment and Workforce Employer Services
PO Box 995
Columbia, SC 29202-0995
3. By Fax:
- You can also fax the completed form to: (803) 737-2835
- Keep a copy of your fax confirmation for proof of submission.
Tax Payments
Although the UCE-101 form itself does not require a direct payment submission, you must make separate payments for the unemployment insurance contributions (taxes owed) to the South Carolina Department of Employment and Workforce (DEW).
These payments can be made through the DEW’s electronic payment system (EFT) or other approved methods.
Penalties:
Employers in South Carolina must file quarterly wage reports (Form UCE-101) and pay unemployment insurance contributions on time. Failing to do so can result in penalties as per the South Carolina Department of Employment and Workforce (DEW).
-
Late Filing Penalty
If you submit your UCE-101 form after the due date, a 10% penalty is assessed on the total contributions due for
that quarter. -
Late Payment Penalty
If you file your UCE-101 form on time but fail to pay the contributions by the due date, a 10% penalty is applied to the unpaid amount.
Form UCE-101 Corrections
- If you realize you’ve made an error on your UCE-101 form, such as reporting incorrect wages or over/understating the unemployment contributions, you need to submit a corrected form.
-
Corrections should be made as soon as possible, ideally before the next quarter’s filing to prevent potential fines
or penalties. - Contact the South Carolina Department of Employment and Workforce (DEW) for guidance on resubmitting a corrected UCE-101 form.
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- New Hire Reporting
- WH-1605 & WH-1606
- UCE-101 Reporting
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Frequently Asked Questions
Do I need to report rehires to the state of South Carolina?
Yes. South Carolina requires employers to report both new hires and rehires to the South Carolina New Hire Reporting Program.
If you rehire an employee who has not worked for you within the past 60 consecutive days, you must submit a new hire report for that individual. This requirement helps the state maintain accurate employment and child support records.
Is annual reconciliation required for SC withholding?
Yes, employers must file Form WH-1606, Fourth Quarter/Annual Reconciliation of Income Tax Withheld, to reconcile the total withholding reported on their quarterly WH-1605 returns for the year.
Are there any related schedules I need to file with SC withholding or UI forms?
There are no additional schedules required for Forms WH-1605 or UCE-101, but you must maintain accurate wage records for all employees.
Are there any special rules to be aware of?
For withholding (WH-1605), your payment frequency (quarterly, monthly, semi-weekly) is determined by your lookback period liability.
Do you need to file if you had no wages this quarter?
Yes. Both Form WH-1605 and Form UCE-101 must be filed for every quarter your business is active, even if you had no employees or paid no wages. You would file a 'zero' return.
What's the difference between WH-1605 and UCE-101?
WH-1605 is for reporting and paying state income tax withheld from employees' paychecks to the South Carolina Department of Revenue (SCDOR). UCE-101 is for reporting employee wages and paying state unemployment insurance contributions to the South Carolina Department of Employment and Workforce (SCDEW).
Can I get an extension to file?
There are no extensions of time to file these returns. You must file and pay by the due date to avoid penalties and interest. If the due date falls on a weekend or holiday, the due date is the next business day.
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