Withholding Tax is 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 who has an employee earning wages in South Carolina must make a return or deposit to the SCDOR for any taxes that have been withheld for state purposes.

 

Get started now- register your business with the South Carolina Department of Revenue by completing the Business Tax application on MyDORWAY. 

BOS TIPS:

  • 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.

Learn more about making withholding payments from this video from the SCDOR.

Find more information about South Carolina Withholding Tax.