Payroll taxes

What are South Carolina employer payroll taxes on a first employee?

· Last updated Nov 2026 · General information, not tax, legal, or insurance advice.

Short answer: on a first South Carolina employee paid $20 an hour for 40 hours a week, employer payroll taxes are $3,364.40 a year. That is $3,182.40 of employer FICA, $42.00 of net FUTA, and $140.00 of South Carolina state unemployment tax at the official new-employer rate of 1.00% on the first $14,000.00 of wages. You will also withhold South Carolina income tax from the employee’s pay and send it to the state. That withheld tax is the employee’s money, not an extra employer cost, so it is left out of the dollar totals below. Workers’ comp and payroll software are extra costs, not payroll taxes.

Federal employer payroll taxes that apply in South Carolina

When you hire a W-2 employee in South Carolina, the federal employer share has three parts, and they do not change just because the work is in South Carolina:

1. Employer Social Security, 6.2% of wages up to the 2026 Social Security wage base of $184,500 (IRS Publication 15, IRS Topic 751). On $41,600 that is $2,579.20.
2. Employer Medicare, 1.45% of all wages, with no wage-base cap. On $41,600 that is $603.20.
3. FUTA, which is 6.0% on the first $7,000 of wages, usually reduced to a net 0.6% when you pay state unemployment tax on time (IRS Topic 759 (Form 940/FUTA)). For one employee that is $42.00. Credit-reduction states can owe more; check the current IRS credit-reduction list if you are unsure.

Together, those federal employer taxes are $3,224.40 on this $20-an-hour, full-year example. You also withhold the employee share of FICA and any federal income tax; those withheld amounts are the employee’s money, not an extra employer cost.

South Carolina unemployment tax (SUTA)

State unemployment insurance is administered by South Carolina Department of Employment and Workforce. The wage base and new-employer rate below come from the U.S. DOL January 2026 Significant Provisions table (PDF), which is the same source used in this site’s calculator. The DOL directory of state unemployment tax agencies is the official contact list if the agency URL changes.

The official DOL table lists a 2026 South Carolina taxable wage base of $14,000.00 and a new-employer rate of 1.00%. On this example, SUTA is 1.00% × $14,000.00 = $140.00, because only the first $14,000.00 of wages is taxable. Wages above that base still owe Social Security (until the federal Social Security cap) and Medicare, but not this SUTA.

Your assigned rate can be higher or lower than the new-employer rate. Use the percentage on your unemployment insurance notice if it differs.

State income-tax withholding

Employers in South Carolina withhold state income tax from employee wages and send it to the state. The employee completes a state withholding form (or the federal W-4, where South Carolina uses it). The withheld amount is not an employer payroll tax, and this page does not invent a withholding dollar amount because it depends on the employee’s elections and current official tables. Register with the South Carolina tax agency. The IRS list of state government websites is a second official starting point if you need the department’s home page.

Disability, paid leave, and other state payroll contributions

The official new-employer SUTA rate used here is 1.00% on the first $14,000.00 of wages. If your notice shows a different rate, use that rate in the calculator.

South Carolina employers withhold state income tax from employee wages. The amount depends on the employee’s withholding certificate and the current official tables, so this page does not invent a withholding dollar figure. Register and file with the South Carolina tax agency.

This page does not list a statewide disability or paid-family-leave payroll tax for South Carolina because no official 2026 employer rate was verified here for a separate program. If your agency notice mentions one, enter that rate as an additional cost; do not treat this omission as legal advice that no such program exists.

New-hire reporting in South Carolina

South Carolina employers must report a new hire within 20 days of the start date. That requirement comes from the official ACF State New Hire Reporting matrix, checked in November 2026. File through the official new-hire reporting page. The ACF State New Hire Reporting contacts and program requirements is the directory if the filing site changes.

New-hire reporting is a filing requirement, not a tax. It still belongs on a first-hire payroll checklist because missing the deadline can bring state penalties. See also paperwork to hire your first employee.

Worked example: $20 an hour, 40 hours, South Carolina

This example uses a round $20 wage so you can compare it with the site’s other $20-an-hour pages and with the state payroll taxes for a first employee index. It is not a claim about what helpers in South Carolina earn, and it leaves out workers’ comp, health coverage, retirement, paid time off, and payroll software.

SUTA and FUTA are front-loaded: you pay them only until each wage base is met, so early pay periods cost more than later ones in the same calendar year. Employer Medicare continues all year, and employer Social Security continues until the federal wage base is met.

What this example leaves out

Workers’ compensation is insurance, not a payroll tax. Premiums vary by South Carolina class code, carrier, and payroll, and this site only prefills verified Indiana ICRB advisory rates when you select Indiana. See workers’ comp for a first employee. Overtime, bonuses, and benefits also change the total. For the week-by-week federal pattern at this same wage, see payroll taxes on a $20-an-hour employee.

Other state payroll-tax pages

Every state and the District of Columbia in this series uses the same $20-an-hour example and the same official DOL and ACF sources, with the figures that actually apply in that jurisdiction. Start from the state payroll taxes for a first employee index, or go to Rhode Island employer payroll taxes or South Dakota employer payroll taxes.

Frequently asked questions

Federal figures were checked against 2026 IRS Publication 15 and IRS Topics 751 and 759 in November 2026. State unemployment wage bases and new-employer rates come from the U.S. DOL January 2026 Significant Provisions table. New-hire reporting deadlines come from the official ACF State New Hire Reporting matrix. Confirm the rate on your unemployment insurance notice, and confirm current withholding, disability, and paid-leave rules with the linked state agencies before you hire.