South Carolina registration and tax info

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How to pay employees in a new state: get registered

To pay employees in a state where you’ve never operated or paid people before, you must register with the relevant state tax agencies. This lets you pay and file the taxes you and your employees are liable for.

Watch this quick tutorial to learn more.

Let us register for you

Gusto works with CorpNet to help you register your business in new states.

How it works—an overview

What you need to do

Add a new work address in Gusto for a different state, and;
Hire an employee and assign them to that address.

Cost and timeline

Prices vary by state. You can see the cost, process, and how long it takes in step four below.

What the process looks like

You give us some basic business information.
Gusto and CorpNet will check your info.
Your registration is usually submitted within 3–5 business days.
Watch for mail with your tax account numbers and rates from the state. The state usually sends your tax account numbers and rates directly to you.
- Heads up: If CorpNet doesn’t enter some information into Gusto, they can show you how to do it yourself.

Third-Party Agent (TPA) authorization reminder

Some state agencies need Gusto to have TPA access to file and pay your taxes. Usually, CorpNet doesn’t set this up, so you’ll have to do it yourself after registration.

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

Get started with state tax registration in Gusto

Prices vary by state. You can see the cost, process, and how long it takes in step four below.

Sign in to Gusto as an admin.
Go to Taxes & compliance and click Tax setup.
Under “[State name] Tax Setup”, click Have us register for you.
- The state will only show up if you’ve added a company work address there and assigned an employee to it.
Look at the price, process, and how long it will take.
- We will not charge you until you send in your order.
Click Continue.
Answer a few questions to see if you're eligible.
- We can only register for you if you do not already have a state account.
Click Save & continue.
Enter some company information (we'll fill in what we already know).
Click Save & continue.
Tell us who the responsible party is. This is the person in charge of the company’s tax matters and good standing.
- If you're a nonprofit and need help, check our FAQs below.
Click Save & continue.
Enter some state-specific operational information.
Click Save and continue.
Review all info carefully. Mistakes can delay things.
- Heads up: State and local agencies might add fees or take longer than expected. CorpNet will notify you if that happens.
Check the box to confirm all your info is correct and agree to the Terms of Service.
Click Send registration order.
- We’ll email you with order updates and add the cost to your next monthly bill.

Some reminders

You need to give Gusto third-party access (TPA) to your tax accounts. CorpNet doesn’t do this for you.
- Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA isn't needed right now.
Watch your mail for registration info. The state will send you your tax account numbers and rates.
- CorpNet can help you enter tax info into Gusto, but they won’t do it for you.

Check the status of your order

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

Reviewing registration details
Any other state-specific instructions

Before your order is done, use the link in the state registration email from Gusto to check your order's status.

You can also check the status in your Gusto account:

Click Taxes & compliance and select Tax setup.
Scroll to the state's section.
Click Check the status of your registration.

Cancel your order

If your order is still in progress, you can cancel from your Gusto account:

Click Taxes & compliance and select Tax setup.
Scroll to the state's section.
Click Check the status of your registration.
On the right-side of the page, under “Changed your mind?”, click Cancel your order.
Let us know why you're canceling.
Click Cancel your order.

If you were already charged, you'll get a refund in a few business days.

Re-open your order with CorpNet

If you canceled your order but would like to re-open it, contact CorpNet directly at (888) 449-2638. Or email them at [email protected].

FAQs

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

A: Yes, you can usually run payroll before all state tax info is added in Gusto. You may be asked to enter tax rates and tax deposit frequencies, but can use temporary info.

Important reminders

We cannot submit tax payments or filings until all tax account numbers are added.
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 don’t 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: 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, CorpNet cannot help with registration. You'll need to work with a tax advisor and state agencies directly.

Q: Where can I find my tax information?

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

In Gusto: Go to Taxes & compliance and click Tax setup, then scroll to state tax setup.
In CorpNet: Create an account and sign in to see your info.
In your state’s online portal: Find your account details there.
By mail: Some agencies send tax info by mail. If that happens, CorpNet 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: What if I'm not liable for unemployment tax yet?

A: If you want CorpNet 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: Can CorpNet help if the responsible party is international without an ITIN or SSN?

A: CorpNet might be able to help. Contact them at [email protected] or call 1(888) 449-2638.

Q: Why can’t I enter 0% ownership for the responsible party or add a commercial owner?

A: Some states have a 1% minimum for the responsible party 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 CorpNet 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 CorpNet for help at [email protected] or call 1(888) 449-2638.

Q: Does CorpNet help with giving Gusto third-party access (TPA) for tax payments?

A: Some state agencies need Gusto to have TPA access to file and pay your taxes. Usually, CorpNet doesn’t set this up, so you’ll have to do it yourself after registration.

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

Q: Does CorpNet help close state tax accounts?

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

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

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

How to find forms in your account

Go to the Taxes & compliance section.
Click Tax documents.
Use the tabs on the page to toggle between federal, state, W-2, and 1099 forms.

Asterisk info (if applicable)

If a form has a star (*) next to it, it will not show up in your tax documents in Gusto. These forms are usually payment vouchers or other forms (e.g., coupons) filed electronically.

You can check if tax payments were made by running an "Agency Payments" report.

Agency website(s) and contact info

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

Need to close or reopen a tax account? Go to our article on closing and reopening a state or local tax account.