Workers Compensation for 4-Employee Small Business in South Carolina
South Carolina requires workers compensation insurance for almost every employer with 4 or more regular employees under SC Code Title 42, including part-time and family members. Premium ranges from $0.30 per $100 of payroll for office work to $15+ per $100 for high-hazard classes like roofing and excavation, per NCCI class code rate filings approved by the SC DOI.
Does SC require workers comp at 4 employees?
Yes. South Carolina requires workers compensation insurance for almost every employer with 4 or more regular employees, including part-time, seasonal, and family-member employees, under SC Code 42. The 4-employee threshold is counted across all locations and is triggered by hiring the fourth person, even temporarily. Sole proprietors and partners can elect to exclude themselves from coverage by filing with the SC Workers' Compensation Commission.
How much does workers comp cost in South Carolina?
Workers compensation premium in South Carolina is calculated per $100 of payroll, multiplied by the NCCI class code rate, then adjusted by experience modifier. Office work (NCCI 8810) runs about $0.30 per $100, retail $1.50, restaurant $2.50 to $4.00, general contracting $5.00 to $10.00, and roofing $15.00+. A 4-employee landscape crew in Greenville with $200,000 payroll pays about $14,000 per year.
What is an NCCI class code in SC?
An NCCI class code is a 4-digit number that classifies a job type for workers compensation rating in South Carolina, set by the National Council on Compensation Insurance. Each code has a rate per $100 of payroll based on industry injury data. Common SC examples: 8810 (office), 8742 (sales), 9082 (restaurant), 0042 (landscape), 5645 (carpentry), 5403 (roofing). Misclassification is the most common source of premium errors.
Are independent contractors counted toward the 4-employee SC threshold?
Generally no, true independent contractors are not counted toward the SC workers compensation 4-employee threshold. However, the SC Workers' Compensation Commission applies a multi-factor test (control, exclusivity, integration into the business) and frequently reclassifies 1099 workers as employees for workers comp purposes. Misclassification can trigger retroactive premium audits and penalties. Most general contractors require subs to carry their own workers comp.
Can a sole proprietor in SC be excluded from workers comp?
Yes. Sole proprietors and partners in South Carolina can elect to exclude themselves from workers compensation coverage by filing Form 21 with the SC Workers' Compensation Commission. The election applies only to the sole proprietor or partner, not to employees. Many general contractors in Greenville and statewide require the sole proprietor to either carry workers comp on themselves or sign a written waiver before the contract can be signed.
About The Morgano Agency
The Morgano Agency Inc is an independent insurance agency in Greenville, South Carolina, founded in 1998 by Vic Morgano. The agency compares rates from multiple carriers including Travelers, Liberty Mutual, Progressive, Hartford, Safeco, and Hagerty for families and businesses across Greenville County and the Upstate. Visit our workers comp page or call (864) 609-5285 for a quote. Find the agency on Google Maps.