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South Carolina tax and labor law guide

Household employment requirements for families hiring a caregiver in South Carolina

Finding helpful South Carolina nanny tax information is not always easy. That’s why we’ve combined all the state and federal tax and labor law information you’ll need! Check out the information below that HomePay is here to help with.

Checklist for South Carolina household employers

We know you’re busy. Here’s a quick “to-do” list with links to extra details below.

Beginning of employment 

During employment 

Optional benefits for your employee

Ending employment

Beginning of employment 

Workers’ compensation

Household employers in South Carolina are not required to get coverage for workers’ compensation insurance, but we recommend all families do so. These policies pay for medical expenses and lost wages if an employee has a work-related injury or illness. Obtain an instant quote and purchase a policy online, or contact our partner, Clarke White, at 804-267-1210 or wcnanny@allrisks.com.

Wage notice requirement

At the time of hire, South Carolina household employers are required to provide their employees with a written wage notice at the time of hire that includes:

  • The employer’s address;
  • The employee’s hourly rate of pay;
  • The hours the employee is expected to work;
  • Any deductions to the employee’s wages (taxes, insurance programs, etc.).

Employment posters 

Families in South Carolina are required to notify their employee of their rights by sharing these posters.

During employment 

Minimum wage rate

The current minimum wage in South Carolina is $7.25/hour.

South Carolina overtime requirements

  • Live-out employees must be paid 1.5x their hourly rate for all hours worked over 40 in a workweek.
  • Live-in employees are not required to be paid overtime. 
  • Overtime is not required to be paid when work is performed on a holiday. 

Pay frequency requirement

Generally, household employers in South Carolina are required to pay their employees on a weekly basis.

State disability insurance

The South Carolina Temporary Disability Insurance Program (SDI) provides disability insurance benefits to employees who cannot work because of sickness or injury not caused by their job. The SDI program is funded by mandatory payroll deductions from employee wages.

Optional benefits for your employee 

Health insurance

Families with only 1 employee can make contributions toward their employee’s health insurance premiums and treat the amount as non-taxable compensation. In this scenario, neither the employee nor the employer are required to pay any taxes on that portion of the compensation.

Families with 2 or more employees have 3 options:

  1. Set up an Individual Coverage Health Reimbursement Arrangement (ICHRA).
  2. Set up a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA).
  3. Purchase a policy through SHOP (Small Business Health Options Program). 

Visit our health insurance page for more information about these options.  

Mileage reimbursements

The current federal mileage reimbursement rate is $0.56 per mile and only covers miles driven by your employee while on the job. Miles driven commuting are not eligible for reimbursement.

Ending employment 

Termination notice requirement

Household employers in South Carolina are required to provide their employee with a termination notice when they decide to end the employment relationship.

Managing unused PTO 

South Carolina household employers do not need to pay their employees for unused sick and/or vacation time.

The information contained in this article is general in nature, may not be applicable to your specific circumstances, and is not intended to be a substitute for or relied upon as personalized tax or legal advice.

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