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Updated: September 20, 2023
As a small business owner in one of the original 13 colonies, you’ve got history on your side. We want to help you make your own history. Whether you own the trendiest coffee shop in Charleston or the best bed & breakfast in Hilton Head, you’re showing what growing your own legacy means to you. Now we want to show you what it means to us.
We designed a handy payroll tax calculator to help you with all of your payroll needs. All you need to do is enter wage and W-4 information for each of your employees into the calculator. Before you know it, you’ll have all South Carolina and federal payroll taxes calculated for your employees.
First and foremost, we have to pay Uncle Sam his due. Let’s calculate all your employees’ federal withholdings, as well as any additional taxes your business is responsible for paying.
Here’s a quick rundown of the components that go into federal tax withholdings. If you would like to see a more detailed explanation on all of the steps below, we invite you to head on over to our comprehensive step-by-step guide.
Now that we’re done with federal taxes, let’s look at South Carolina state income taxes. It’s a progressive income tax, meaning the more money your employees make, the higher the income tax. The tax rates range from 0% all the way up to a high of 7%.
As an employer in South Carolina, you have to pay unemployment insurance to the state. In 2023, the rate ranges from 0.06%, all the way up to 5.46% on the first $14,000 in wages paid to each employee in a calendar year.
If you’re a new employer, you will pay a rate of .55%.
You’ve done it! You’ve checked “payroll taxes” off your to-do list so you can focus on growing your business. Once each employee’s net pay is calculated (taking deductions and withholdings into consideration), you’re in the clear.
All you have to worry about is getting your employees paid on time as well as setting aside whatever you owe in FICA and UI taxes. Those numbers can add up quickly!
You will need to use Form 941 to file federal taxes quarterly, and Form 940 to report your annual FUTA tax. You can pay taxes online using the EFTPS payment system. More details about employment tax due dates can be found here.
If all that wasn’t enough, here are a couple more links that can help you become the payroll whiz your small business needs you to be!
South Carolina Department of Employment and Workforce (803) 737-2400 | Unemployment Insurance Tax Rate Table | Unemployment Insurance Tax Forms
These rates are based on local legislation and can change at any time. Always consult a tax professional if you are unsure about your obligations.
South Carolina employers can use the calculator at the top of this page to quickly calculate their employees’ gross pay, net pay, and deductions in few clicks (and feel confident when cutting paychecks). However, every now and then, employers have situations that necessitate a little more number crunching. Do you occasionally give bonuses to top performers? Don’t forget that Uncle Sam considers these payments to be supplemental wages and requires taxes to be withheld. Also, if you have workers who come and go, you may need to figure out how much their final paycheck will be. So, if you can use a little more help managing the math, check out some of the calculators listed below.
Try OnPay out yourself to see how easy payroll and HR can be. To get started, just share a few basic details about your business. Our team of pros will set everything up and import your employees’ information for you.