Employer of Record for South Carolina

Guide to Hiring Employees in South Carolina

Your guide to hiring employees in South Carolina, covering employment and labor laws, payroll, benefits, onboarding and taxes. You can also manage and pay your contractors in South Carolina through Playroll.

Famous Photo Of South Carolina Landmark
Iconic Image Of South Carolina

Capital City

Columbia

Timezone

EST

(

GMT-5

)

Paid Leave

Bone Marrow Donor Leave

Income Tax

0% - 7%

Employer Tax

0.06% - 5.46%

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How to Hire Employees In South Carolina

Hiring in South Carolina for the first time can be challenging, especially with the state's complex employment laws. Whether you're hiring independent contractors, setting up a legal entity, partnering with a PEO, or using an Employer of Record (EOR), it's essential to understand the local employment landscape. Playroll's comprehensive guide is here to help, whether you're onboarding local talent or relocating team members.

Here are four primary ways companies can hire employees in South Carolina:

  • Establishing a local entity: Creating a legal entity in South Carolina allows for direct hiring, but it can be costly and time-consuming. However, it gives you full control over employment and reduces risk exposure.
  • Partnering with an Employer of Record (EOR): An EOR, like Playroll, takes on the legal responsibilities of employment, acting as the employer on your behalf. This option streamlines hiring, payroll, and compliance with South Carolina’s labor laws, helping you hire in South Carolina without navigating the complex legal landscape yourself.
  • Working with a Professional Employer Organization (PEO): A PEO, such as Playroll, co-employs your team, managing essential HR functions like payroll, benefits, and compliance. Partnering with a PEO ensures you meet South Carolina’s labor regulations while offering competitive employee benefits.
  • Hiring independent contractors: Hiring independent contractors can be more cost-effective, but South Carolina has strict contractor classification rules. Proper classification is essential to avoid penalties for misclassification when hiring in South Carolina.

Complying with South Carolina specific employment regulations and federal laws is critical to avoiding legal risks and costly fines. Our guide focuses on hiring in South Carolina, employment compliance, and how Playroll’s services can support your business as you navigate the complexities of hiring in the state.

Good To Know

As of 2024, South Carolina's population is approximately 5.3 million, reflecting steady growth due to its favorable living conditions and economic opportunities.

The state's economy is diverse, with significant contributions from manufacturing, agriculture, and tourism. Notably, South Carolina is a leading producer of textiles and automobiles.

Advanced manufacturing, aerospace, and biotechnology are among the fastest-growing sectors, attracting both investment and skilled labor to the state.

South Carolina is a "right-to-work" state, meaning employees are not required to join a union or pay union dues as a condition of employment.

Key Things to Know About Hiring in South Carolina

Labor Laws in South Carolina

Working Hours in South Carolina

South Carolina has specific employment and labor laws governing working hours, designed to protect employees’ rights and ensure fair compensation. Whether you’re hiring local employees or working with an Employer of Record (EOR), it's essential to understand the state's regulations around working hours to ensure compliance.

1. Standard Workweek and Overtime

South Carolina does not have state-specific regulations defining standard work hours; therefore, federal guidelines under the Fair Labor Standards Act (FLSA) apply. The typical workweek is 40 hours.

Employees must be compensated at 1.5 times their regular hourly rate for any hours worked over 40 in a given workweek. Certain employees, such as executive, administrative, and professional employees earning more than $684 per week, are exempt from overtime pay.      

2. Meal and Rest Breaks‍

South Carolina does not have state laws requiring employers to provide meal periods or breaks to employees.

If an employer chooses to provide breaks:    

  • Breaks lasting less than 20 minutes must be paid.        
  • Meal periods (usually 30 minutes or more) do not need to be paid, provided the employee is relieved of all duties during this time.              

Minimum Wage in South Carolina

As of 2024, the minimum wage in South Carolina is $7.25 per hour, aligning with the federal minimum wage, as the state does not have its own minimum wage law.

Overtime in South Carolina

Employees in South Carolina are entitled to overtime pay at a rate of 1.5 times their regular hourly wage for hours worked over 40 in a workweek. Certain employees, such as executive, administrative, and professional employees earning more than $684 per week, are exempt from overtime pay.

Famous South Carolina Landmark

Onboarding New Hires in South Carolina

We can help you get your new employee started in South Carolina fast, with a minimum onboarding time from just 1-2 working days. Note that the timeline is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Playroll platform.

For non-citizens of the US, a work eligibility assessment may be required, and can add three extra days to the onboarding time. If a follow-up is needed, there may be additional delays.

Please note that payroll cut-off dates can impact the actual first day of employment. Playroll’s payroll cut-off date is the 10th of the month, unless otherwise specified.

Payroll Taxes For South Carolina

Payroll taxes in South Carolina are deductions employers must take from employees’ wages and remit to the state. These taxes fund various state programs and services, including unemployment benefits and disability insurance. Examples of payroll taxes include:

  • State Income Tax: Ranges from 0% to 7%, depending on the employee's income level.
  • Unemployment Insurance Tax: Ranges from 0.6% to 5.4% on the first $14,000 of each employee's wages.
           

Payroll Cycle in South Carolina

South Carolina does not have specific state laws dictating the frequency of employee pay periods. Employers are free to set their own pay frequency, such as weekly, biweekly, semimonthly, or monthly, as long as it is consistent and employees are paid on a regular schedule.

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South Carolina Employment Taxes

Employer Tax Contributions

Employers in South Carolina are responsible for several employment taxes, including unemployment insurance and other mandatory contributions.

Employer payroll contributions are generally estimated at an additional 0.6% - 5.4% on top of the employee salary in South Carolina.

Employment Tax Type Tax Rate
Unemployment Insurance (UI) Tax 0.6% - 5.4%

Employee Tax Contributions

Employee tax contributions are generally estimated at 0% - 7% of employee salary in South Carolina.

Employee Payroll Tax Contribution Tax Rate
State Income Tax 0% - 7%
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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in South Carolina tailored to your needs.

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Benefit Requirements for Employers in South Carolina

Employers in South Carolina are not mandated by state law to provide specific employee benefits. However, offering competitive employee benefits, such as employee benefits, can be advantageous in attracting and retaining talent.

Employee Benefits for South Carolina

Competitive benefits are essential for attracting and retaining top talent in South Carolina. Offering the right package helps employees feel valued and motivated. Our benefits experts understand the local labor market's trends, requirements, and expectations, ensuring your employees feel valued and supported. Common benefits in our South Carolina packages include:

  • Pension or 401(K)
  • Vision Insurance
  • Life Insurance
  • Medical Insurance
  • Dental Insurance
  • Health Savings Plan (HSA)
  • Flexible Spending Account (FSA)
  •                    

Paid and Unpaid Leave Policies in South Carolina

Sick Leave

Employers are not required to provide paid sick leave, but many offer it as part of their benefits package. If provided, it is generally accrued over time.

Voting Leave

South Carolina law mandates that employees who are registered voters must be allowed time off to vote on election days. Employers must provide up to two hours of leave if the employee’s work schedule conflicts with voting hours.

Family and Medical Leave

South Carolina follows the federal Family and Medical Leave Act (FMLA), which allows eligible employees up to 12 weeks of unpaid leave.

Jury Duty Leave

Employers are required to allow employees time off for jury duty, but they are not required to pay employees during their absence for jury duty.

Military Leave

South Carolina follows federal law, providing military leave to employees who are active members of the U.S. military.

It’s Easy To Manage Benefits For Employees In South Carolina With Playroll

Employment Termination Protocols in South Carolina

Hiring Employees in South Carolina with an employer of record

Discuss how an EOR handles onboarding, including setting up compliant employment contracts, registering for taxes, and managing benefits like South Carolina's superannuation system (if applicable).

The employer of record is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with South Carolina's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with South Carolina's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with South Carolina's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by South Carolina's labor laws, such as health insurance, pension contributions, and statutory leave.

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FAQS

FAQs About Hiring In South Carolina

How to submit payroll taxes in South Carolina?

Payroll taxes in South Carolina must be submitted to the South Carolina Department of Employment and Workforce (SCDEW) for unemployment taxes and to the South Carolina Department of Revenue (SCDOR) for income tax withholding. Taxes can be submitted electronically via the state’s online portals.

Is there a minimum wage requirement for employees in South Carolina?

As of 2024, South Carolina follows the federal minimum wage law, which sets the minimum wage at $7.25 per hour. The state does not have its own minimum wage law, so the federal rate applies.

Are employers required to offer 401k in South Carolina?

No, employers in South Carolina are not required by law to offer a 401(k) or any other retirement savings plan. However, many employers offer such plans as part of their employee benefits package to attract and retain talent.

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