What tax forms are required for new hires?

Tax Forms Required for New Hires in South Carolina

When hiring employees in South Carolina, it is essential to collect and manage specific tax forms to ensure compliance with both federal and state requirements. Proper handling of these forms supports accurate payroll processing and tax reporting.

Federal Tax Forms

• Form W-4 (Employee's Withholding Certificate): All new employees must complete Form W-4. This form determines the federal income tax withholding amount from the employee’s paycheck.
• Form I-9 (Employment Eligibility Verification): Employers must verify the identity and employment authorization of each new hire using Form I-9. While not a tax form, it is required for legal hiring compliance.

South Carolina State Tax Forms

• SC W-4 (South Carolina Withholding Allowance Certificate): South Carolina requires a state-specific withholding form. New hires should complete the SC W-4 to establish state income tax withholding.

Operational Considerations

• Timely Collection: Collect all required forms before the employee’s first paycheck to avoid withholding errors.
• Recordkeeping: Maintain copies of W-4 and SC W-4 forms securely for payroll audits and compliance reviews.
• Payroll Setup: Use the information from these forms to configure payroll systems accurately for federal and state tax withholdings.
• Reporting: Ensure new hire reporting to South Carolina’s New Hire Reporting Program is completed within 20 days of hire to comply with state regulations.

As of 2026, staying updated on any changes to withholding forms or requirements is important for ongoing compliance and smooth payroll operations in South Carolina.