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South Carolina has a progressively reducing income tax (top 6.4% in 2024, targeting 6.0% by 2027) and one of the lowest new-employer SUTA rates in the US (0.45%). No state PFL, right-to-work. Rippling handles SCDOR and SCDEW filings.
South Carolina is a growing Southeast economy with strengths in manufacturing (BMW, Boeing, Volvo), logistics, tourism, and a growing technology sector in the Research Triangle spillover areas and Charleston tech community. South Carolina payroll is employer-friendly: a progressively reducing income tax (targeting 6.0% top rate by 2027), no state paid family leave, one of the lowest new-employer SUTA rates in the US (0.45%), and right-to-work.
Rippling’s South Carolina payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| FUTA | 6.0% (net 0.6%) | After SUTA credit; first $7,000 |
| SC SUI (SCDEW) | New employer 0.45% | On first $14,000 of wages (2024) — one of the lowest new-employer rates in the US |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% | No wage base limit |
| Workers’ Compensation | Varies by risk class | Required for 4+ employees |
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| Contribution | Rate | Notes |
|---|---|---|
| Federal Income Tax | Graduated 10–37% | Per W-4 |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% + 0.9% surtax | Surtax above $200K single |
| SC State Income Tax | 0%–6.4% | 6-bracket progressive; top rate 6.4% in 2024 (reducing to 6.2% in 2025; targeting 6.0% by 2027) |
| South Carolina Income | SC Rate |
|---|---|
| $0–$3,110 | 0% |
| $3,111–$6,220 | 3% |
| $6,221–$9,330 | 4% |
| $9,331–$12,440 | 5% |
| $12,441–$15,560 | 6% |
| Above $15,560 | 6.4% (2024) |
SC withholding remitted to SCDOR. Annual SC-WH-1605 reconciliation by January 31.
Final Pay: South Carolina requires final pay on the next regularly scheduled payday. Accrued vacation: SC Payment of Wages Act treats promised vacation as wages if the employer’s policy provides for payout — a written forfeiture policy is generally enforceable.
South Carolina is progressively reducing its top income tax rate: 7.0% (2022) → 6.5% (2023) → 6.4% (2024) → 6.2% (2025) → 6.0% (2026–2027). The state is targeting a top rate of 6.0% by 2027 pending revenue triggers. Rippling updates SC withholding rates annually as reductions take effect.
South Carolina requires workers’ comp for employers with 4 or more employees (regular, part-time, or casual). Coverage through private insurers or the SC State Accident Fund. The South Carolina Workers’ Compensation Commission administers claims.
South Carolina’s minimum wage is $7.25/hour — matching the federal minimum. SC has not enacted a state minimum above the federal floor. Charleston, Greenville, and Columbia do not have local minimums.
South Carolina has one of the lowest new-employer SUI rates in the US at 0.45% on the first $14,000 of wages. This makes SC particularly attractive for employers growing their workforce, as initial unemployment insurance costs are minimal until experience rates kick in after 3 years.
