Remote Workers | South Carolina Business One Stop

Businesses are increasingly relying on remote employees to meet demands. Do you have or are you thinking about hiring a remote worker who resides in South Carolina for your out-of-state business? Are you a South Carolina business employing a remote worker who resides outside the state?

Below are several remote worker scenarios that may apply to your business. We have taken the guess work out and put together all of the info your business will need to be complaint in SC when hiring remote workers.

Also, be sure to check out this video on remote workers.

Complete an I-9 Form to verify the employee
Register for SC Withholding by contacting the SC Department of Revenue (SCDOR). You can register online at MyDORWAY
The SC Department of Employment and Workforce (SCDEW) will determine the Unemployment Insurance liability or non-liability of the employing unit. An Employer ID number can be applied for on SUITS
All employers must report all newly hired employees to SC Department of Social Services (SCDSS) within 20 days after the employee's first day of work. You can report this online at newhire.sc.gov.

Generally, the remote employee’s wages are not taxable in South Carolina since they are located out of state
The business may be required to withhold Income Taxes from the wages for the state in which the remote employee is physically located

Wages are taxed in the state in which they are earned unless the employee is working in a state that does not withhold state Income Tax. If the employee is a South Carolina resident and is working in a state that does not have state Income Tax, you should withhold South Carolina tax. Florida, Texas, and Tennessee are examples of states that have no state Income Tax. If a South Carolina resident is working in one of these states, then South Carolina taxes would be withheld. (Section 12-8-520(C))

South Carolina Income Taxes will be withheld from your paycheck, and you will need to file a South Carolina Individual Income Tax return
You may be required to pay taxes in the state where your employer is located as well. Residents in South Carolina who pay taxes both to South Carolina and another state are eligible for a credit on their South Carolina Individual Income Tax return
The amount of the credit is the lesser amount paid in taxes to South Carolina or the other state. Claim this credit electronically using your filing software or with the SC1040TC if filing by paper

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.

My business is located in South Carolina, and I employ a South Carolina resident who works remotely in another state.

Tax Tips for Your Remote Employee(s)