Remote Workers | South Carolina Business One Stop

Whether you're an out-of-state business hoping to hire an employee residing in South Carolina or a South Carolina business hoping to hire an out-of-state employee, you've come to the right place!

This video provides a great introduction. Keep reading below for more details!

Verify the legal status of your employee using E-Verify within three days of employment.
- This includes completing the I-9 and verifying the employee's work authorization through the E-Verify federal work authorization program administered by the U.S. Department of Homeland Security.
Register for State Withholding using MyDORWAY.
- For more information, see the South Carolina Department of Revenue website.
Apply for your Employer ID number using the South Carolina State Unemployment Insurance Tax System (SUITS).
- You'll use this to file unemployment insurance wage reports and pay unemployment insurance taxes.
- For more information, see the South Carolina Department of Employment and Workforce website.
Report all newly hired employees to the South Carolina Department of Social Services within 20 days of employment.
- This process ensures that non-custodial parents live up to their financial responsibilities to their children. For more information, see the DSS website.

Let your remote employee who works in South Carolina know:

South Carolina Income Taxes will be withheld from their paycheck if they are a resident, and they will need to file a South Carolina Individual Income Tax return.
They may also be required to pay taxes in the state where their employer is located. South Carolina residents who pay taxes both to South Carolina and another state are eligible for a credit on their South Carolina Individual Income Tax return.
- The credit amount is the lesser amount paid in taxes to South Carolina or the other state. They can claim this credit electronically using filing software or with the SC1040TC if filing by paper.

Wages are taxed in the state in which they are earned, so your remote employee's wages are generally not taxable in South Carolina, since they are located out of state.

You may be required to withhold income taxes for the state where your remote employee is physically located.
If your employee is a South Carolina resident who is temporarily working in another location or is working from a state that does not have an Income Tax, you should withhold South Carolina taxes.

My business is located outside of South Carolina, and I have a remote employee who lives in South Carolina.

My business is located in South Carolina, and I have a remote employee who lives and works in another state.