Withholding Tax is typically money withheld from an individual’s wages and sent to the South Carolina Department of Revenue (SCDOR) on the employee’s behalf. This withholding is used as a credit against the employee’s total yearly Income Tax liability. Every employer/withholding agent who has an employee earning wages in South Carolina (and who is required to file a return or deposit with the IRS) must make a return or deposit to the SCDOR for any taxes that have been withheld for state purposes.

  • If the employee is working in South Carolina, regardless of where he/she is a resident, the income earned in South Carolina is taxed by South Carolina.
  • If a South Carolina resident is earning wages in a state that does not have a state Income Tax, the withholding should be for South Carolina.

Find more information about South Carolina Withholding Tax.