South Carolina · Payroll closure
Close a South Carolina payroll tax account.
South Carolina lets you close the withholding account on the return itself, which is convenient. The trap is which return. If your account was open for any part of the year, the one you owe is the WH-1606 annual reconciliation, not another quarterly WH-1605.
Last updated:
Who you are dealing with
South Carolina Department of Revenue
- Handles:
- Employer withholding account
- System:
- MyDORWAY
- Form:
- MyDORWAY, the More tab, then Close a Tax Account. Or tick the Close Withholding Account box and enter a close date on the WH-1605 or WH-1606 return
- Phone:
- 844-898-8542 (Withholding line)
South Carolina Department of Employment and Workforce
- Handles:
- Unemployment insurance employer account
- System:
- SUITS
- Form:
- Handled separately from the Department of Revenue closure
South Carolina Department of Employment and Workforce, payroll closure
State fee. $0. South Carolina does not charge to close a withholding account. Outstanding tax is unaffected by the account status.
Our fee. $180 per state, flat. State fees are passed through at cost.
When you have to close or cancel
You close when you stop paying South Carolina wages. You are required to file a return through the closing date, so the closure date on the form and the last return have to agree.
Final returns come first
Do not file a WH-1605 for the fourth quarter. If the withholding account was open for any portion of the year, the WH-1606 Fourth Quarter and Annual Reconciliation Return is what is required, because it carries information for the entire year rather than just the quarter. A business that closes in March still owes the WH-1606 for that year.
How long it takes
South Carolina does not publish a processing time. Closing through MyDORWAY gives an immediate record. Closing via the tick box on a return means the closure is processed with the return, so it moves at the pace of the filing.
What we do
We confirm which accounts are open, file any outstanding final returns, submit each cancellation, and follow up until every agency confirms in writing. You keep the client. We never email them.
Opening an account in another state instead? State payroll tax registration covers the withholding and unemployment accounts payroll software will not open.
What makes South Carolina harder than average
- The fourth quarter return is not a WH-1605. It is the WH-1606, and it is required if the account was open for any portion of the year. Close in February and the WH-1606 is still coming, covering the whole year, not the stub. This is the single most common South Carolina mistake.
- The closure can hide on a return. Ticking the Close Withholding Account box and entering a close date on the WH-1605 or WH-1606 does close the account, which is efficient and also means there is no separate confirmation to file away.
- Returns are owed through the closing date. The date you write on the form determines what you still owe, so picking a closing date you cannot support with filings creates a gap.
- Employment and Workforce is a separate agency. The unemployment account lives with the Department of Employment and Workforce in SUITS, and nothing about the Department of Revenue closure reaches it.
Dissolving the company is not the same as closing the tax accounts
Articles of dissolution leave the withholding, unemployment, and sales tax accounts open, and those agencies keep expecting returns until each one is closed with them. That is the separate filing that stops the notices.
How South Carolina compares
Every state closes them differently. The table compares South Carolina with the other states we have documented, agency by agency.
For CPAs and bookkeepers
Send the state, the last payroll or sale date, and the account numbers. The written confirmations come back to you. We do not dissolve the company and we do not take over payroll.
Questions and answers
I closed in March. Do I still file an annual return?
Yes. The WH-1606 is required if your South Carolina withholding account was open for any portion of the year, because it contains information for the entire year rather than just the fourth quarter. Closing early in the year does not remove it.
Can I file a WH-1605 for the fourth quarter instead?
No. South Carolina says not to file a WH-1605 for the fourth quarter. The WH-1606 replaces it and does both jobs.
How do I close the account?
Either in MyDORWAY under the More tab, Close a Tax Account, or by ticking the Close Withholding Account box and entering a close date on your WH-1605 or WH-1606. Both work.
Does that close my unemployment account?
No. The Department of Employment and Workforce holds that separately in SUITS, and the Department of Revenue closure does not touch it.
What do you need from me to start?
The legal name and FEIN, the South Carolina withholding file number, the DEW account number, the intended closing date, and which quarterly returns have been filed this year.
Also in South Carolina
Agency details verified 2026-08-03
About the provider
Regcrest LLC is a document preparation and filing service based in Allentown, Pennsylvania, founded in 2026. It prepares and files state payroll and sales tax registrations, account closures, and resale certificates on behalf of the businesses that instruct it, and works behind accounting firms, bookkeepers, and payroll providers as well as directly with businesses.
Regcrest LLC is not a CPA firm and not a law firm. It gives no tax or legal advice. It files in all 50 states, and publishes a full page for the 29states it has verified against the agency's own material so far, each one showing the date it was checked. For anything that turns on your specific situation, ask a licensed accountant or attorney.