Who is required to withhold South Carolina state taxes?

Any employer who pays wages to employees working in South Carolina is required to withhold South Carolina state income tax.. This includes:

• Businesses operating in South Carolina – Any employer with a physical location, office, or business activity in the state.

• Out-of-state employers – If you have employees who live or work in South Carolina, you must register and withhold South Carolina state taxes.

• Household employers – Individuals who hire domestic help (such as nannies, caregivers, or housekeepers) may also be required to withhold state taxes.

Employers are responsible for:

• Registering with the South Carolina Department of Revenue (SCDOR) for a withholding account.

• Withholding state income tax from employee wages based on South Carolina withholding tables.

• Filing and remitting taxes to the SCDOR on the required schedule (monthly, quarterly, or annually, depending on assigned filing frequency).