Payroll South Carolina, Unique Aspects of South Carolina Payroll Law and Practice

The South Carolina State Agency that overseesof the hiring or rehiring.
the collection and reporting of State income taxesThe information can be sent as a W4 or
deducted from payroll checks is:equivalent by mail, fax or electronically.
Department of RevenueThere is a $25.00 penalty for a second offense
P.O. Box 125late report and $500 for conspiracy in South
Columbia, SC 29214Carolina.
(803) 898-5300The South Carolina new hire-reporting agency can
South Carolina allows you to use the Federal W-4be reached at 888-454-5294 or 803-898-9235 or
form to calculate state income tax withholding.on the web at
Not all states allow salary reductions made underSouth Carolina does allow compulsory direct
Section 125 cafeteria plans or 401(k) to bedeposit but the employee's choice of financial
treated in the same manner as the IRS codeinstitution must meet federal Regulation E
allows. In South Carolina cafeteria plans are notregarding choice of financial institutions.
taxable for income tax calculation; not taxable forSouth Carolina requires the following information
unemployment insurance purposes. 401(k) planon an employee's pay stub:
deferrals are not taxable for income taxes;Gross and Net Earningsitemized deductions
taxable for unemployment purposes.South Carolina requires that employee be paid as
In South Carolina supplemental wages are taxeddesignated by employer.
at a 7% flat rate.In South Carolina there are no statutory
You must file your South Carolina State W-2s byrequirements concerning the lag time between
magnetic media if you are have more than 25when the services are performed and when the
employees and are required to file your federalemployee must be paid.
W-2s by magnetic media.South Carolina payroll law requires that
The South Carolina State Unemploymentinvoluntarily terminated employees must be paid
Insurance Agency is:their final pay with in 48 hours or next regular
Employment Security Commissionpayday (no more than 30 days). Voluntarily
1550 Gadsden St.terminated employees must be paid their final pay
P.O. Box 995within 48 hours or by the next regular payday
Columbia, SC 29201(no more than 30 days).
(803) 737-3070There is no provision in South Carolina law
The State of South Carolina taxable wage baseconcerning paying deceased employees.
for unemployment purposes is wages up toEscheat laws in South Carolina require that
$7,000.00.unclaimed wages be paid over to the state after
South Carolina requires Magnetic media reportingone year.
of quarterly wage reporting if the employer hasThe employer is further required in South Carolina
at least 250 employees that they are reportingto keep a record of the wages abandoned and
that quarter.turned over to the state for a period of 10 years.
Unemployment records must be retained in SouthThere is no provision in South Carolina law
Carolina for a minimum period of five years. Thisconcerning tip credits against State minimum
information generally includes: name; social securitywage.
number; dates of hire, rehire and termination;In the South Carolina payroll law there is no
wages by period; payroll pay periods and payprovision covering required rest or meal periods.
dates; date and circumstances of termination.South Carolina statute requires that wage and
The South Carolina State Agency charged withhour records be kept for a period of not less
enforcing the state wage and hour laws is:than three years. These records will normally
Department of Labor, Licensing and Regulationsconsist of at least the information required under
Office of Labor ServicesFLSA.
P.O. Box 11329The South Carolina agency charged with enforcing
3600 Forest DriveChild Support Orders and laws is:
Columbia, SC 29211-1329Child Support Enforcement Division
(803) 734-4295Department of Social Services
There is no provision for minimum wage in theP.O. Box 1469
State of South Carolina.Columbia, SC 29202-1469
There is also no general provision in South Carolina(800) 768-5858
State Law covering paying overtime in aSouth Carolina has the following provisions for child
non-FLSA covered employer.support deductions:
South Carolina State new hire reportingWhen to start Withholding? Next pay period after
requirements are that every employer mustservice.
report every new hire and rehire. The employerWhen to send Payment? Within 7 days of
must report the federally required elements of:Payday.
Employee's nameWhen to send Termination Notice? Within 20 days
Employee's addressof termination.
Employee's social security numberMaximum Administrative Fee? $3 per payment.
Employer's nameWithholding Limits? Federal Rules under CCPA.
Employers addressPlease note that this article is not updated for
Employer's Federal Employer Identification Numberchanges that can and will happen from time to
(EIN)time.
This information must be reported within 20 days