South Carolina registration and tax info

Having payroll issues? Learn how to troubleshoot blocked payroll.

Setting up payroll in South Carolina for the first time

Before you can pay employees in a new state, you must register with the state’s tax agencies. This lets you file and pay the right taxes.

🎥 Watch a quick video to learn how registering in a new state works
📘 See our blog for full state business guides
🤝 Let Gusto register for you

Use the dropdowns below to learn more. Use CMD + F (or CTRL + F) to search for words in the article.

Let us register for you

Gusto works with Middesk to help you register with tax agencies in new states.

For now, this includes: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

How it works—an overview

Get help registering for state taxes

We can help you register for state tax accounts after you:

Add a work address in the new state in Gusto.
Assign that work address to a new or existing employee.
Check your Home page for a to-do. If the state requires it, register with the Secretary of State and tell us when it's done.

Cost, timeline, and who can register

The cost, steps, and turnaround time depend on the state. Gusto will show you these details when you start the registration process.

Middesk cannot help if your company is:

A non-profit that’s not a 501(c)(3)
A business that left a PEO (Professional Employer Organization)
A business that bought another business already registered.
A business that changed its legal entity type (like from LLC to Corp)
A Limited Partnership (LP) or Limited Liability Partnership (LLP)

What the process looks like

You give us some basic business information.
Middesk will check your info.
Your registration is usually submitted within two business days.
- State registration with Middesk includes:
  - State income tax (withholding)
  - State unemployment insurance
- What's not included:
  - Local agency registration
  - Third-Party Agent (TPA) access or Power of Attorney (POA) authorization.
    - If setting up TPA requires online agency portal access:
      - If Middesk has to create an agency account to register your business, you can find the agency portal login details on the Taxes & compliance > Tax setup page in Gusto once registration is complete.
      - If Middesk does not need to create an account, but the agency requires TPA to be set up through their portal, you need to set up the agency portal accounts on your own.
- After we submit your registration, you may need to answer a verification call from the agency to confirm that the registration request is legitimate.
When Middesk gets your tax account information back after registering, they'll enter it in Gusto for you.

Third-Party Access (TPA) and Power of Attorney (POA)reminder

Some state agencies need Gusto to have TPA or a POA on file to file and pay your taxes. Usually, Middesk does not set this up, so you’ll have to do it yourself after registration.

Check the state registration articles to see if TPA or POA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA is not needed right now.

If setting up TPA requires online agency portal access:

If Middesk has to create an agency account to register your business, you can find the agency portal login details on the Taxes & compliance > Tax setup page in Gusto once registration is complete.
If Middesk does not need to create an account, but the agency requires TPA to be set up through their portal, you need to set up the agency portal accounts on your own.

Get started with state tax registration in Gusto

The cost, steps, and turnaround time depend on the state. Gusto will show you these details when you start the registration process.

Need help with registration questions?

If you’re not sure how to answer one of the registration questions, check Middesk’s Help Center or email them at [email protected].

How to get started with state tax registration in Gusto:

Sign in to Gusto.
Go to Taxes & Compliance and select Tax setup.
Under “[State name] Tax Setup”, find the "Let us help you register" banner and click Learn more.
- The state will only show up if you’ve added a company work address there and assigned an employee to it.
Review the price, process, and how long it'll take. We will not charge you until you send in your order.
- State registration with Middesk includes:
  - State income tax (withholding)
  - State unemployment insurance
- What's not included:
  - Local agency registration
  - Third-Party Agent (TPA) access or Power of Attorney (POA) authorization.
    - If setting up TPA or POA requires online agency portal access:
      - If Middesk has to create an agency account to register your business, you can find the agency portal login details on the Taxes & compliance > Tax setup page in Gusto once registration is complete.
      - If Middesk does not need to create an account, but the agency requires TPA to be set up through their portal, you need to set up the agency portal accounts on your own.
Click Get started on Middesk.
- Reminder: We can only register for you if you do not already have a state account.
Answer some questions about your business, like:
- Basic info
- Contact info
- Company details
- Address details
- Officer/owner info
- State-specific details
After you've entered the information, review all the info carefully on the “Review Information” page. Mistakes can delay things.
- Heads up: State agencies might add fees or take longer than expected. Middesk will notify you if that happens.
If everything looks good, click Continue to Gusto.
Before you submit the order, review the cost breakdown and total amount again.
- Middesk will start to process your order after you submit it. They'll email you with order updates, and we'll add the cost to your next monthly bill.
- At this time, we cannot support order cancellations or refunds.
Click Submit.
- Heads up: After we submit your registration, you may need to answer a verification call from the agency to confirm that the registration request is legitimate. If you do not complete this within 3–5 business days, the order will be canceled and refunded.

What to expect next

When Middesk gets your tax account information back after registering, they'll enter it in Gusto for you.
Each state and agency takes a different amount of time to process a registration. To estimate when your state tax account info will be available, check the Post Submission Questions in Middesk's help article.

Important: You may need to give Gusto access

Some states require you to give Gusto third-party access (TPA) or a Power of Attorney (POA) to your tax accounts. Middesk does not do this for you.

Check the state registration articles to see if TPA or POA is needed. If there's no “Authorize Gusto” or TPA section, it's not needed right now.
If TPA or POA is needed, and you need access to your online account:
- If Middesk created the account (to register your business), you can find the login info after registration is complete in Gusto under Taxes & compliance > Tax setup.
- If Middesk did not create the account, and the state still needs TPA, you must create the portal account yourself.

Need to make a change?

If you already submitted your info but need to fix something, email [email protected] to update it.

Check the status of your order

When your order is complete, you’ll get emails from Gusto and Middesk. They’ll detail the next steps, which include:

Reviewing registration details
Any other state-specific instructions

Before your order is done, you can check the order status in your Gusto account:

Sign in to Gusto.
Go to Taxes & Compliance select Tax setup.
Find the state headline, and just below it, view the order status. It could be:
- Tax registration in progress (not yet submitted to the state)
- We need more information
- The state is working on your order
- You have existing tax accounts
  - If we find you've already registered for taxes in the state, Middesk will cancel and refund the registration order. Work with the agency to find your tax account details and enter them in Gusto.
- Your registration has been completed
- Your order is on hold
- We could not complete your tax registration.
If there is action required, check your email for next steps.

How Gusto handles tax registration mail

For most states where tax registration info is sent by physical mail, here's what to expect:

Middesk receives agency mail during registration to collect tax details. Your tax account info is later sent to Gusto.
Gusto provides a digital mailbox where agency mail that was sent during registration can be viewed.
After registration is complete, the agency updates its mailing address to your business address for future mail.
- Important: In some cases, you'll need to take action to help update the address. We'll send an email or Home page to-do if any action is needed from you.

States—supported by Middesk—that send physical registration mail

Arizona, Delaware, Kansas, Kentucky, Maryland, Michigan, Montana, New Hampshire, Oklahoma, Washington, and West Virginia.

How to view your digital mailbox or tax account credentials

Sign in to your admin profile in Gusto.
Go to Taxes & Compliance and click Tax Setup.
Find the state where a registration order has been completed, and click Visit Middesk.
- This option will only appear for states that send physical mail.
Here's what you can see in the digital mailbox:
- Communications: View mail and other agency communication sent during registration or right after.
- Accounts: View tax account credentials by agency.

FAQs

Q: Can I run payroll before my registration is done?

A: Yes. You may be asked to enter tax rates and tax deposit frequencies, but you can use temporary info.

Important reminders

We cannot submit tax payments or filings until all tax account numbers are added in Gusto.
If you run payroll before finishing registration, you might get notices about late tax payments or filings. Any penalties are your responsibility.
If you’re only registering for unemployment tax and do not have your rate yet, use the new employer rate for your state in Gusto until you get the correct one. Update the rate once you get it.

Q: I need to change some of the registration information that was submitted. What do I do?

A: Email Middesk at [email protected].

Q: Can I use Gusto to register in a new state without a Federal Employer Identification Number (FEIN)? What if my business is merging or being acquired?

A: No, you need a FEIN in Gusto to get registration help for state taxes.

If your business is merging or being acquired, Middesk cannot help with registration. You'll need to work with a tax advisor and state agencies directly.

Q: What if I'm not liable for unemployment tax yet?

A: If you want Middesk to start setting up an unemployment account number before you're liable, you can:

Use today’s date as the first date the employee(s) in the new state will be paid.
Enter the start date of the quarter you expect to meet the liability threshold.
- Check the state’s liability info in the Register on your own section (go to the SUI dropdown). If there’s no info, contact the state agency directly.

Q: What do I do if the tax agency contacts me after the registration is submitted?

A: Respond to them. For some agencies, you may need to answer a verification call to confirm that the registration request is legitimate. If you do not complete this within 3–5 business days, the order will be canceled and refunded.

Q: Can Middesk help if the responsible party is international without an ITIN or SSN?

A: No. Middesk cannot help in this scenario, you'll need to register on your own.

Q: Why am I unable to enter 0% ownership for the responsible party or add a commercial owner?

A: Some states have a 1% minimum for the responsible party's ownership percentage. These states include ID, KS, MN, OH, SC, DC, DE, MD, NJ, NY, and RI.

You’ll need to place registration orders directly with Middesk outside of Gusto or register directly with the agency.

Some states require an individual owner to be listed. If you’re a non-profit or unsure, contact Middesk for help at [email protected].

Q: When will my tax account information be available?

A: Each state and agency takes a different amount of time to process a registration. To estimate when your state tax account info will be available, check the Post Submission Questions in Middesk's help article.

Q: Where can I find my tax information?

A: You can find your tax info in several places:

In Gusto: Click the Taxes & compliance section and select Tax setup, then scroll to state tax setup.
In your state’s online portal: Find your account details there.
- You may need to create accounts on your own, but Middesk does this when it's required to register. Go to the Post Submission Questions in the Middesk help article to see which agencies they'll create credentials for.
  - If Middesk has to create an agency account to register your business, you can find the agency portal login details on the Taxes & compliance > Tax setup page in Gusto once registration is complete.
By mail: Some agencies send tax info by mail. If that happens, Middesk will let you know, and you'll need to enter this info in Gusto.

Gusto’s state tax registration service does not contain tax, legal, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult a lawyer, HR expert, or accountant for specific guidance.

Q: Does Middesk help with giving Gusto third-party access (TPA) or Power of Attorney (POA) for tax payments?

A: Some state agencies need Gusto to have TPA or POA access to file and pay your taxes. Usually, Middesk does not set this up, so you’ll have to do it yourself after registration.

Check the state registration articles to see if TPA or POA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA is not needed right now.

If setting up TPA or POA requires online agency portal access:

If Middesk has to create an agency account to register your business, you can find the agency portal login details on the Taxes & compliance > Tax setup page in Gusto once registration is complete.
If Middesk does not need to create an account, but the agency requires TPA to be set up through their portal, you need to set up the agency portal accounts on your own.

Q: Does Middesk help close state tax accounts?

A: No, you'll need to close the tax account yourself.

Q: Can I cancel my Middesk order?

A: At this time, we do not support order cancellations or refunds.

Q: What is Middesk's phone number?

A: To get support from Middesk, you must email them at [email protected]. They can help with registration-specific questions, or changing info that's already been submitted. For all other questions, you can message Gusto.

Click the dropdowns below to learn how to register for income and unemployment tax in South Carolina—includes information about local taxes.

South Carolina tax agencies

South Carolina Department of Revenue (DOR) – income tax withholding
South Carolina Department of Employment and Workforce (DEW) – unemployment tax

Income tax (withholding) account registration

You'll receive the below within 24 hours after registering online, or 3 weeks if registering by mail:

Withholding File Number
Tax deposit schedule

Keep those time frames in mind when planning your first South Carolina payroll.

Register for income tax

If you have questions while you register, you can call the agency at (803) 898-5000, or email them at "[email protected]".

Head to the SC Department of Revenue online.
Scroll to the "Applications & Searches" section, and click Business Tax Application.
- You can reference the agency's help guidance as you go.
Scroll to the "Select the type of registration" headline, and complete all remaining prompts.

Enter the tax account information in Gusto

Once a valid South Carolina work address has been added in Gusto for one or more employee(s), you can add your tax account information:

Go to the Taxes & compliance section and select Tax setup.
Scroll to the "South Carolina Tax Setup" headline and select Manage taxes.
Enter your Withholding File Number and tax deposit schedule.
- If you edit a tax account number after payments or filings have already been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct any historical tax issues related to tax account number updates.

Unemployment tax registration—includes info about exempt owners' wages

Most companies become liable for South Carolina unemployment insurance (SUI) tax once the company has:

Paid $1500 in wages during a calendar quarter or;
Had at least one South Carolina employee working for any part of the week, for 20 or more different weeks during a calendar year.

Liability thresholds can vary by business type (general, non-profit, etc), so we recommend contacting the agency directly to confirm when your specific business will be liable.

Running payroll in Gusto before you're liable for SUI

If you need to run payroll and do not yet meet the above requirements, Gusto allows it—enter the new employer rate for your state in Gusto in the meantime and update the rate once you receive it.

Register for unemployment tax

You'll receive a six-digit Employer Account Number (EAN), commonly referred to as your State Tax ID, in 2–3 weeks after registering.

Head to the SC Department of Employment and Workforce online.
Click Employers.
Scroll to the "I Need To" headline, and under "Register for an Account," click Employers.
Review what you'll need to register, check the box to acknowledge you understand "SECTION 41-41-10", and click Next.
Complete all remaining prompts.

Once you've completed registration with the agency, we recommend authorizing Gusto as your third-party agent so we can help troubleshoot any tax issues.

Enter the tax account information in Gusto

Once a valid South Carolina address has been added in Gusto for one or more employee(s), you can add your tax account information:

Click the Taxes & compliance section and select Tax setup.
Scroll to the "South Carolina Tax Setup" headline and select Manage taxes.
Click edit next to the applicable section to enter your unemployment account number and unemployment tax rate*—your account number should be six digits.
- *Do not enter the Department Administrative Contingency Assessment (DACA) rate of 0.060% in Gusto, we automatically account for this. Subtract DACA from the total unemployment rate listed on your notice to get the rate you should enter.
  - Most tax rate notices include the following in the total rate:
    - Unemployment Insurance Tax rate;
    - Trust Fund Replenishment rate, and;
    - The 0.60% DACA rate—do not include this in the rate entered in Gusto
      - Enter the sum of the "Unemployment Insurance Tax" rate and the "Trust Fund Replenishment" rate found on the notice (less the DACA rate of 0.60%).
  - Example: A total rate of 0.870% would be entered into Gusto as 0.81%
    - 0.870% - 0.060% = 0.810%.
- If you have a seven-digit account number with a leading zero, omit the zero when entering your number.
- You can always update your unemployment rate.
Enter Standard Occupational Classification (SOC) codes for your employees in South Carolina.
- Starting Jan 1, 2024, SOC codes are required for every employee working in South Carolina.

If you edit a tax account number after payments or filings have already been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct any historical tax issues related to tax account number updates.

Owner's wages

If you have owners or partners who are exempt from unemployment insurance liability, their wages need to be excluded from quarterly wage reports to the state. If their wages are not excluded, it could cause the company's entire tax filing to be rejected.

Next steps:

Verify which owners are listed as exempt from unemployment insurance liability in your South Carolina State Unemployment Insurance Tax System (SC SUITS)—instructions below.
Set up an employee-exemption in Gusto for the tax so we do not report wages in error.

Checking the company’s owner’s information on file with the state

If you have an online SC SUITS account, follow these instructions to view or update owner information:

Sign in to your SC SUITS account using your personal username and password.
Under the "Your Options" header, select Account Maintenance.
Under the "Employer Account" header, select the Employer Maintenance link.
Under the "Other Information" header, select the Ownership Summary tab to review the business owners you have listed with the agency.
To add, remove, or modify the owners or their information, click Edit Ownership.

Find account numbers and rate info (if you're already registered)

If you've already registered in the state, you'll need to enter your tax account details in Gusto to pay employees.

You'll need to be registered with one or more of the below agencies in order for Gusto to file and pay taxes on your behalf:

South Carolina Department of Revenue (DOR) – income tax withholding
South Carolina Department of Employment and Workforce (DEW) – unemployment tax

If you still need to register, click the applicable dropdown above.

Find your withholding tax account number or tax deposit schedule

If you've run payroll in South Carolina in the past, you can find your Withholding File Number and tax deposit schedule by:

Reviewing notices received from the South Carolina DOR, or;
Calling the agency at (803) 896-1450.

Find your unemployment account number and rate—includes info about exempt owners' wages

Unemployment account number

Find your Employer Account Number (EAN) by reviewing your Employer Package, Liability Letter, or Employer Quarterly Contribution and Wages Report (Form UCE-120) received from the agency (Department of Employment and Workforce).

Account numbers are typically six digits—if you have a seven-digit number with a leading zero, omit the zero when entering your number in Gusto.

Unemployment tax rate

You can find your unemployment tax rate by:

Reviewing the “Rate Notice” from the agency, or;
Calling the agency at (803) 737-3080, or;
Emailing [email protected].

Owner's wages

Next steps:

Verify which owners are listed as exempt from unemployment insurance liability in your South Carolina State Unemployment Insurance Tax System (SC SUITS)—instructions below.
Set up an employee-exemption in Gusto for the tax so we do not report wages in error.

Checking the company’s owner’s information on file with the state

If you have an online SC SUITS account, follow these instructions to view or update owner information:

Sign in to your SC SUITS account using your personal username and password.
Under the "Your Options" header, select Account Maintenance.
Under the "Employer Account" header, select the Employer Maintenance link.
Under the "Other Information" header, select the Ownership Summary tab to review the business owners you have listed with the agency.
To add, remove, or modify the owners or their information, click Edit Ownership.

Enter the tax account information in Gusto

Once a valid South Carolina address has been added in Gusto for one or more employee(s), you can add your tax account information:

Click the Taxes & compliance section and select Tax setup.
Scroll to the "South Carolina Tax Setup" headline and select Manage taxes.
Click edit to enter your Withholding File Number and tax deposit schedule.
Enter your unemployment account number and unemployment tax rate*—your account number should be six digits.
- *Do not enter the Department Administrative Contingency Assessment (DACA) rate of 0.060% in Gusto, we automatically account for this. Subtract DACA from the total unemployment rate listed on your notice to get the rate you should enter.
  - Most tax rate notices include the following in the total rate:
    - Unemployment Insurance Tax rate;
    - Trust Fund Replenishment rate, and;
    - .The 0.60% DACA rate—do not include this in the rate entered in Gusto.
      - Enter the sum of the "Unemployment Insurance Tax" rate and the "Trust Fund Replenishment" rate found on the notice (less the DACA rate of 0.60%).
  - Example: A total rate of 0.870% would be entered into Gusto as 0.81%.
    - 0.870% - 0.060% = 0.810%.
- If you have a seven-digit account number with a leading zero, omit the zero when entering your number.
Enter Standard Occupational Classification (SOC) codes for your employees in South Carolina.
- Starting Jan 1, 2024, SOC codes are required for every employee working in South Carolina.

How to authorize Gusto with South Carolina agencies

Learn how to authorize Gusto as your third-party agent (TPA) for the agency below.

Authorizing Gusto with the SC Department of Employment and Workforce (DEW)

In order for Gusto to help troubleshoot tax issues, we'll need you to authorize Gusto as your third-party agent (TPA). Gusto will become your TPA for the agency below:

South Carolina Department of Employment and Workforce (DEW) – unemployment tax

To become your third-party agent, a notarized form authorizing Gusto as your payroll provider must be submitted to the agency—to make this easy, we’ll prepare the necessary document for you to e-sign in Gusto. Then, we’ll submit the form directly to the agency.

Add Gusto as your third-party agent

This form will only populate once you’ve assigned a SC work address to your first SC employee.

Have the company signatory sign in to their profile in Gusto.
Click the applicable SC to do item from your Home page.
E-sign the auto-generated Form UCE-1010 in Gusto—the company signatory must sign this.
- For general information about the form and it’s instructions, click here.

We’ll submit this to the agency directly on your behalf—you’re all set for now.

Forms we file in South Carolina

WH-1601* (Withholding Tax Payment)
WH-1605 (Withholding Quarterly Tax Return)
WH-1606 (Withholding Fourth Quarter/Annual Reconciliation/W-2 Transmittal)
WH-1612 (W2/Magnetic Media Transmittal Form)
UCE-101/ UCE-120 (Employer Quarterly Contribution and Wage Reports)
UCE-120A (Employer's Quarterly Continuation Sheet)
Wage and Tax Statement (State W2)
New Hire Report

You can view forms in Taxes & Compliance > Tax documents. Switch between the tabs to find federal, state, W-2s, and 1099s.

Forms with an asterisk (*) may not show in your Gusto account—these are usually payment vouchers or coupons filed electronically.

To see what Gusto has paid on your behalf, run the Agency Payments report.

Agency website(s) and contact info

South Carolina Department of Revenue
- Call (803) 898-5000
South Carolina Department of Employment and Workforce
- Call (803) 737-2400

Learn how to close or reopen tax accounts here.