Is Workers Comp Required in South Carolina?
Yes. If you have 4 or more employees (including part-time), you must carry workers compensation insurance in South Carolina. Penalties for non-compliance include:
- Fines up to $1,000 per day
- Criminal misdemeanor charges
- Inability to bid on jobs requiring proof of insurance
- Personal liability for employee injuries
What Workers Comp Actually Costs in SC
Workers comp rates vary by industry classification (class code). Here are the average rates per $100 of payroll:
- Office/clerical: $0.50-1.50
- Retail: $1.00-2.50
- Restaurants: $2.00-4.00
- Light manufacturing: $2.50-5.00
- Construction (varies by trade): $8.00-25.00
- Roofing (highest risk): $30.00-50.00
**Example:** A contractor with $300,000 in annual payroll at a rate of $12.00 per $100:
($300,000 ÷ 100) × $12.00 = $36,000/year
How to Reduce Your Workers Comp Costs
- **Implement safety programs** — Carriers reward safety
- **Experience modification rate (EMR)** — Keep it below 1.0
- **Return-to-work programs** — Get injured workers back faster
- **Proper employee classification** — Ensure office staff isn't rated as field workers
- **Pay-as-you-go options** — Avoid large deposits and audits
- **Regular policy audits** — Ensure you're not overpaying
**We Help You:**
- Find the lowest rates from 20+ carriers
- Set up pay-as-you-go payroll integration
- Implement safety programs that reduce claims
- Manage claims to minimize impact on future rates
- Handle all SC compliance requirements
