Hiring employees in South Carolina: the 2026 compliance checklist for employers and recruiters

As of October 2026, an employer hiring in South Carolina has to register with the Department of Employment and Workforce (DEW) and open a withholding account with the Department of Revenue (SCDOR), carry workers' compensation once it regularly employs four or more people, have each new hire complete the SC W-4, tell each new hire in writing at the time of hiring their normal hours, wages, payday and deductions, verify every new hire through E-Verify within three business days, and report the hire to the State Directory of New Hires within 20 calendar days. We found no South Carolina statute on pay ranges, salary history, criminal history questions or AI in private hiring, and the state is one-party consent for recording.

This page is the South Carolina hub: one table with every item and its official source, then a short section on each. Where we already have a full guide to an item, the section summarizes it and links there.

The South Carolina hiring checklist at a glance

What must be in place before the first South Carolina hire?

Two state accounts. DEW's Employer Handbook says "If you have employees in South Carolina, you must register with DEW using the SUITS Registration Wizard," and lists the general liability test as "$1,500 paid in a quarter or one employee for 20 weeks." DEW's tax page sets the new-employer rate at the class 12 rate or one percent, "whichever is higher," on the first $14,000 of each employee's wages. Then a withholding account: the SCDOR's withholding page treats every employer with an employee earning South Carolina wages as a withholding agent, registered through MyDORWAY.

Workers' compensation follows at four employees. The Workers' Compensation Commission's employer FAQs say "businesses that regularly employ four or more employees within South Carolina are required to maintain workers' compensation coverage," counting part-time workers and family members, and S.C. Code § 42-1-360 also exempts employers whose payroll in the previous calendar year was under $3,000. Enroll in E-Verify before the first start date. The federal layer (an EIN, Form W-4 and Form I-9 by the third business day) applies on top.

Does a staffing or recruiting agency need a South Carolina license?

Most placement firms do. The Private Personnel Placement Services Act, Title 41, Chapter 25, says "No person or firm may engage in the private personnel placement service business in South Carolina unless the person or firm has a current license," and its definition covers anyone who charges fees, "whether direct or indirect," naming executive search firms and consultants. Temporary help services are exempt. The Secretary of State licenses each location for two years, with a certification from a member of the South Carolina Bar, $300 in fees and a $3,000 surety bond. Professional employer organizations need a Department of Consumer Affairs license under S.C. Code § 40-68-30. Our guide to the South Carolina staffing agency license covers the fee rules and penalties.

What must a South Carolina job posting include, and can you ask about pay history?

We found no South Carolina statute that requires pay ranges in job postings or bars salary history questions for private employers, and South Carolina does not appear in our trackers of pay transparency laws by state or salary history ban states. A South Carolina posting for a remote role open to candidates in Colorado, California, New York or Illinois can still pick up those states' posting rules.

When can you ask about criminal history or run a credit check?

South Carolina has no statewide ban-the-box law for private employers. Two 2025 bills that would bar public and private employers from asking about criminal records until an interview or conditional offer, H. 3272 and H. 3775, show no action after referral to a House committee on the General Assembly's bill pages as of October 2026. Federal rules still apply: the EEOC's individualized-assessment guidance and the FCRA background check process.

We found no South Carolina statute limiting employment credit checks either, so the FCRA's disclosure, authorization and adverse action steps govern; our credit check laws guide covers the states that restrict them.

Can you record or transcribe a job interview in South Carolina?

Yes, as a participant. S.C. Code § 17-30-30(C) makes it lawful for a private person to intercept a call or conversation "where the person is a party to the communication or where one of the parties to the communication has given prior consent." Unlawful interception is a felony (up to five years or $5,000 under § 17-30-50), and § 17-30-135 sets civil damages of at least $500 a day or $25,000, "whichever is greater," with five years to sue. When the candidate is in an all-party state, that state's rule may govern. See South Carolina recording consent law for interviews and recording calls across state lines.

Does South Carolina regulate AI in hiring?

Not with a statute as of October 2026. S. 963, introduced February 26, 2026, would prohibit algorithmic discrimination by high-risk AI systems in decisions including "employment or an employment opportunity," but its bill page shows it still in the Senate Committee on Banking and Insurance. Federal anti-discrimination law still reaches the results of an AI screen; see our state-by-state AI hiring summary.

Can you drug test applicants in South Carolina?

Yes. We found no South Carolina statute limiting pre-employment testing by private employers; the statutes shape programs instead. S.C. Code § 41-1-15 lets an employer run a drug prevention program with a policy statement and notice to employees "at the time the program is established by the employer or at the time of hiring the employee, whichever is earlier," and keeps results confidential unless the employee signs a release. A program used for the workers' compensation premium credit under § 38-73-500 adds random testing and written positive results within 24 hours, and § 44-107-30 requires a drug-free workplace certification for state contracts or grants of $50,000 or more. Our drug testing laws guide compares states that restrict testing.

Does South Carolina require E-Verify?

Yes, for every private employer. S.C. Code § 41-8-20 requires all private employers that must complete federal employment eligibility verification forms to "register and participate in the E-Verify federal work authorization program" and verify "every new employee within three business days after employing a new employee," with no size threshold. LLR's Office of Immigration Compliance audits employers; under § 41-8-50 a first violation brings a year of probation, and repeat violations or knowingly employing an unauthorized worker suspend the employer's licenses. Details are in E-Verify requirements in South Carolina and E-Verify requirements by state.

Which state withholding form does a new hire complete?

The SC W-4, alongside the federal W-4. The SCDOR's 2026 SC W-4 tells employees to complete it "so your employer can withhold the correct South Carolina Income Tax from your pay," one for each employer, and a claimed exemption expires December 31, 2026. It doubles as a new-hire report once the employer fills in boxes 8 to 10. The SCDOR's withholding page says wages earned in South Carolina are taxed there whatever the employee's state of residence.

Which notices must a new South Carolina employee get at hire?

• Wage and hours notice. S.C. Code § 41-10-30(A) says "Every employer shall notify each employee in writing at the time of hiring of the normal hours and wages agreed upon, the time and place of payment, and the deductions which will be made from the wages." Posting the terms conspicuously at the workplace also satisfies it, and changes other than raises need seven calendar days' written notice. A first violation draws an LLR warning, later ones up to $100 each.
• Drug prevention program notice, if you run a § 41-1-15 program.
• Posters. Covered employers post the Commission's Employer's Notice of Being Subject to the Act, and LLR requires its workplace poster and Right-to-Work poster.
• Background check consent. If an outside agency runs a check, the FCRA requires the stand-alone disclosure and written authorization first.

How do you report a new hire in South Carolina?

To the Department of Social Services' State Directory of New Hires. S.C. Code § 43-5-598 requires employers hiring someone who lives or works in the state to report "within twenty calendar days of the hiring of the employee," with the employer's name, address and federal identification number and the employee's name, address and Social Security number. The date of hire is "the first day the employee works for which the employee is entitled to compensation," and rehires after 60 or more days away count. Report online at newhire.sc.gov, or send an SC W-4 or the DSS paper form by mail or fax. Penalties run up to $25 for a second and each later failure, or $500 where employer and employee conspire not to report.

The South Carolina hiring steps in order

1. Before the first hire: register with DEW and the SCDOR, enroll in E-Verify, and bind workers' compensation at four or more employees. Fee-charging placement firms get the Secretary of State license.
2. Posting: no South Carolina pay range rule, but check the rules of any other state where candidates for a remote role live.
3. Screening: no South Carolina statute we found restricts criminal history or credit questions; follow EEOC guidance and the FCRA.
4. Interview: a participant may record, but ask first: the civil floor is $25,000 and the candidate may be in an all-party state.
5. Offer: drug test if your policy calls for it, and put the normal hours, wages, payday and deductions in writing by the time of hire.
6. First day: Form I-9, then E-Verify within three business days; the federal W-4 and SC W-4.
7. Within 20 calendar days of the first day of paid work: report the hire to the State Directory of New Hires.

Hiring in more than one state? The same checklist is available for North Carolina, Georgia, South Dakota, Utah, Vermont, West Virginia, Wisconsin and Wyoming.