From SCDOR: Tax Tips for Remote Workers & Their Employers
What you need to know:
If you live in South Carolina and work from home for an out-of-state employer, South Carolina Income Taxes will be withheld from your paycheck, and you will need to file a South Carolina Individual Income Tax return.
If you are an out-of-state employer with remote employees who work in South Carolina, in general you must register and pay South Carolina Withholding Tax.
If you are an employer in South Carolina and hire employees who are not South Carolina residents and work outside of South Carolina, you may be required to withhold Income Taxes from the wages for the state the remote employee is physically located in.
Since the COVID-19 pandemic, working remotely has become a fixture of the U.S. economy.
According to a survey of businesses by the U.S. Labor Department, 27.5% had employees working remotely last year some or all of the time, down from 40.1% in 2021. University researchers conducting the monthly Working Arrangements and Attitudes survey of workers reported in June 2023 that 41.3% of employees worked remotely some or all of the time.