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

The South Carolina State Agency that overseesCarolina State new hire reporting requirements
the collection and reporting of State income taxesare that every employer must report every new
deducted from payroll checks is:Department ofhire and rehire. The employer must report the
Revenuefederally required elements of:Employee's name
P.O. Box 125Employee's address
Columbia, SC 29214Employee's social security number
(803) 898-5300Employer's name
Carolina allows you to use the Federal W-4 formEmployers address
to calculate state income tax withholding.Not allEmployer's Federal Employer Identification
states allow salary reductions made under SectionNumber (EIN) This information must be reported
125 cafeteria plans or 401(k) to be treated in thewithin 20 days of the hiring or rehiring.
same manner as the IRS code allows. In SouthThe information can be sent as a W4 or
Carolina cafeteria plans are not taxable for incomeequivalent by mail, fax or electronically.
tax calculation; not taxable for unemploymentThere is a $25.00 penalty for a second offense
insurance purposes. 401(k) plan deferrals are notlate report and $500 for conspiracy in South
taxable for income taxes; taxable forCarolina.The South Carolina new hire-reporting
unemployment purposes.In South Carolinaagency can be reached at 888-454-5294 or
supplemental wages are taxed at a 7% flat803-898-9235 or on the web at Carolina does
rate.You must file your South Carolina State W-2sallow compulsory direct deposit but the
by magnetic media if you are have more than 25employee's choice of financial institution must
employees and are required to file your federalmeet federal Regulation E regarding choice of
W-2s by magnetic media.The South Carolina Statefinancial institutions.South Carolina requires the
Unemployment Insurance Agency is:Employmentfollowing information on an employee's pay
Security Commissionstub:Gross and Net Earnings
1550 Gadsden St.itemized deductionsThe South Carolina agency
P.O. Box 995charged with enforcing Child Support Orders and
Columbia, SC 29201laws is:Child Support Enforcement Division
(803) 737-3070Department of Social Services
State of South Carolina taxable wage base forP.O. Box 1469
unemployment purposes is wages up toColumbia, SC 29202-1469
$7,000.00.South Carolina requires Magnetic media(800) 768-5858
reporting of quarterly wage reporting if theCarolina has the following provisions for child
employer has at least 250 employees that theysupport deductions:When to start Withholding?
are reporting that quarter.Unemployment recordsNext pay period after service.
must be retained in South Carolina for a minimumWhen to send Payment? Within 7 days of
period of five years. This information generallyPayday.
includes: name; social security number; dates ofWhen to send Termination Notice? Within 20
hire, rehire and termination; wages by period;days of termination.
payroll pay periods and pay dates; date andMaximum Administrative Fee? $3 per payment.
circumstances of termination.The South CarolinaWithholding Limits? Federal Rules under CCPA.
State Agency charged with enforcing the statePlease note that this article is not updated for
wage and hour laws is:Department of Labor,changes that can and will happen from time to
Licensing and Regulationstime.Charles J. Read, CPA has been in the payroll,
Office of Labor Servicesaccounting and tax business for 30 years, the last
P.O. Box 11329fifteen in private practice. Mr. Read is the author
3600 Forest Driveof "How to Start a New Business".For Professional
Columbia, SC 29211-1329Payroll services at a Budget Price go to a
(803) 734-4295Paperless Payroll Company.Go to For a full service
is no provision for minimum wage in the State ofpayroll service bureau with CPA's on staff.See an
South Carolina.There is also no general provision inexcerpt of Mr. Read's interviews from William
South Carolina State Law covering payingShatners "Heartbeat of America" television show
overtime in a non-FLSA covered employer.Southon the websites linked above.