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<\/a><\/figure><\/div>\n\n\nChecklist for South Carolina household employers<\/strong><\/h2>\n\n\n\nWe know you\u2019re busy. Here\u2019s a quick \u201cto-do\u201d list with links to extra details below.<\/p>\n\n\n\n
Beginning of employment <\/strong><\/h3>\n\n\n\n\n- Verify caregiver\u2019s work eligibility<\/a>.<\/li>\n\n\n\n
- Set up EIN & state tax account(s)<\/a>.<\/li>\n\n\n\n
- Obtain workers\u2019 compensation insurance<\/a>. <\/li>\n\n\n\n
- Provide a wage notice<\/a>. <\/li>\n\n\n\n
- Display employment posters<\/a>. <\/li>\n<\/ul>\n\n\n\n
During employment <\/strong><\/h3>\n\n\n\n\n- File returns, remit taxes and manage correspondence.<\/a><\/li>\n\n\n\n
- Pay at least South Carolina minimum wage<\/a>, weekly. <\/li>\n\n\n\n
- Pay overtime<\/a>, when it applies.<\/li>\n\n\n\n
- Allow for paid disability leave<\/a>, when it applies.<\/li>\n<\/ul>\n\n\n\n
Optional benefits for your employee<\/strong><\/h3>\n\n\n\n\n- Health insurance<\/a> <\/li>\n\n\n\n
- Mileage reimbursement<\/a> <\/li>\n<\/ul>\n\n\n\n
Ending employment<\/strong><\/h3>\n\n\n\n\n- Provide a termination notice<\/a>.<\/li>\n\n\n\n
- Manage unused paid time off<\/a>. <\/li>\n\n\n\n
- Close down your state employment tax account(s)<\/a>.<\/li>\n\n\n\n
- Maintain payroll records<\/a>.<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
Beginning of employment <\/strong><\/h2>\n\n\n\nVerify caregiver\u2019s work eligibility<\/h3>\n\n\n\n
Before your employee begins to work, you need to fill out Form I-9<\/a> to verify they\u2019re eligible to work in the U.S. The I-9 does not get sent to any government agency but must be presented to authorities if your nanny or senior caregiver\u2019s employment eligibility is ever questioned. Your state also requires that you complete the E-Verify process<\/a> for your employee.<\/p>\n\n\n\nSet up EIN & state tax account(s)<\/h3>\n\n\n\n
You must first apply for a EIN (Employee Identification Number)<\/a> with the IRS. This will be used as your unique ID with both state and federal tax authorities. Then you can open an account with your state taxing authority.<\/p>\n\n\n\nWorkers\u2019 compensation<\/strong><\/h3>\n\n\n\nHousehold employers in South Carolina are not required to get coverage for workers\u2019 compensation insurance<\/a>, 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<\/a>, or contact our partner, Clarke White, at 804-267-1210 or wcnanny@allrisks.com<\/a>.<\/p>\n\n\n\nWage notice requirement<\/strong><\/h3>\n\n\n\nAt 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:<\/p>\n\n\n\n
\n- The employer\u2019s address;<\/li>\n\n\n\n
- The employee\u2019s hourly rate of pay;<\/li>\n\n\n\n
- The hours the employee is expected to work;<\/li>\n\n\n\n
- Any deductions to the employee\u2019s wages (taxes, insurance programs, etc.).<\/li>\n<\/ul>\n\n\n\n
Employment posters <\/strong><\/h3>\n\n\n\nFamilies in South Carolina are required to notify their employee of their rights by sharing these posters<\/a>.<\/p>\n\n\n\nDuring employment <\/strong><\/h2>\n\n\n\nFile returns, remit taxes and manage correspondence<\/h3>\n\n\n\n\n- File state employment tax returns throughout the year and remit state employer and employee taxes.<\/li>\n\n\n\n
- Remit federal employer and employee taxes via 1040-ES<\/a> estimated tax payment voucher four times each year.<\/li>\n\n\n\n
- Each year end, prepare Schedule H and file with Form 1040<\/a>; prepare and distribute Form W-2<\/a> to each employee; file Form W-2 Copy A\/Form W-3<\/a> with the Social Security Administration (SSA).<\/li>\n\n\n\n
- Manage ongoing alerts and notices from the state (tax rates and labor law is subject to change at any time.<\/li>\n<\/ul>\n\n\n\n
Minimum wage rate<\/h3>\n\n\n\n
The current minimum wage in South Carolina is $7.25\/hour.<\/p>\n\n\n\n
South Carolina overtime requirements<\/h3>\n\n\n\n\n- Live-out employees must be paid 1.5x their hourly rate for all hours worked over 40 in a workweek.<\/li>\n\n\n\n
- Live-in employees are not required to be paid overtime. <\/li>\n\n\n\n
- Overtime is not required to be paid when work is performed on a holiday. <\/li>\n<\/ul>\n\n\n\n
Pay frequency requirement<\/h3>\n\n\n\n
Generally, household employers in South Carolina are required to pay their employees on a weekly basis.<\/p>\n\n\n\n
State disability insurance<\/h3>\n\n\n\n
The South Carolina Temporary Disability Insurance Program (SDI) provides disability insurance<\/a> 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.<\/p>\n\n\n\nOptional benefits for your employee <\/strong><\/h2>\n\n\n\nHealth insurance<\/h3>\n\n\n\n
Families with only 1 employee can make contributions toward their employee\u2019s 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.<\/p>\n\n\n\n
Families with 2 or more employees have 3 options:<\/p>\n\n\n\n
\n- Set up an Individual Coverage Health Reimbursement Arrangement (ICHRA).<\/li>\n\n\n\n
- Set up a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA).<\/li>\n\n\n\n
- Purchase a policy through SHOP (Small Business Health Options Program). <\/li>\n<\/ol>\n\n\n\n
Visit our health insurance page<\/a> for more information about these options. <\/p>\n\n\n\nMileage reimbursements<\/h3>\n\n\n\n
The current federal mileage reimbursement rate is 70 cents per mile and only <\/em>covers miles driven by your employee while on the job. Miles driven commuting are not eligible for reimbursement.<\/p>\n\n\n\nEnding employment <\/strong><\/h2>\n\n\n\nTermination notice requirement<\/strong><\/h3>\n\n\n\n
- \n
- Verify caregiver\u2019s work eligibility<\/a>.<\/li>\n\n\n\n
- Set up EIN & state tax account(s)<\/a>.<\/li>\n\n\n\n
- Obtain workers\u2019 compensation insurance<\/a>. <\/li>\n\n\n\n
- Provide a wage notice<\/a>. <\/li>\n\n\n\n
- Display employment posters<\/a>. <\/li>\n<\/ul>\n\n\n\n
During employment <\/strong><\/h3>\n\n\n\n
- \n
- File returns, remit taxes and manage correspondence.<\/a><\/li>\n\n\n\n
- Pay at least South Carolina minimum wage<\/a>, weekly. <\/li>\n\n\n\n
- Pay overtime<\/a>, when it applies.<\/li>\n\n\n\n
- Allow for paid disability leave<\/a>, when it applies.<\/li>\n<\/ul>\n\n\n\n
Optional benefits for your employee<\/strong><\/h3>\n\n\n\n
- \n
- Health insurance<\/a> <\/li>\n\n\n\n
- Mileage reimbursement<\/a> <\/li>\n<\/ul>\n\n\n\n
Ending employment<\/strong><\/h3>\n\n\n\n
- \n
- Provide a termination notice<\/a>.<\/li>\n\n\n\n
- Manage unused paid time off<\/a>. <\/li>\n\n\n\n
- Close down your state employment tax account(s)<\/a>.<\/li>\n\n\n\n
- Maintain payroll records<\/a>.<\/li>\n<\/ul>\n\n\n\n
<\/div>\n\n\n\nBeginning of employment <\/strong><\/h2>\n\n\n\n
Verify caregiver\u2019s work eligibility<\/h3>\n\n\n\n
Before your employee begins to work, you need to fill out Form I-9<\/a> to verify they\u2019re eligible to work in the U.S. The I-9 does not get sent to any government agency but must be presented to authorities if your nanny or senior caregiver\u2019s employment eligibility is ever questioned. Your state also requires that you complete the E-Verify process<\/a> for your employee.<\/p>\n\n\n\n
Set up EIN & state tax account(s)<\/h3>\n\n\n\n
You must first apply for a EIN (Employee Identification Number)<\/a> with the IRS. This will be used as your unique ID with both state and federal tax authorities. Then you can open an account with your state taxing authority.<\/p>\n\n\n\n
Workers\u2019 compensation<\/strong><\/h3>\n\n\n\n
Household employers in South Carolina are not required to get coverage for workers\u2019 compensation insurance<\/a>, 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<\/a>, or contact our partner, Clarke White, at 804-267-1210 or wcnanny@allrisks.com<\/a>.<\/p>\n\n\n\n
Wage notice requirement<\/strong><\/h3>\n\n\n\n
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:<\/p>\n\n\n\n
- \n
- The employer\u2019s address;<\/li>\n\n\n\n
- The employee\u2019s hourly rate of pay;<\/li>\n\n\n\n
- The hours the employee is expected to work;<\/li>\n\n\n\n
- Any deductions to the employee\u2019s wages (taxes, insurance programs, etc.).<\/li>\n<\/ul>\n\n\n\n
Employment posters <\/strong><\/h3>\n\n\n\n
Families in South Carolina are required to notify their employee of their rights by sharing these posters<\/a>.<\/p>\n\n\n\n
During employment <\/strong><\/h2>\n\n\n\n
File returns, remit taxes and manage correspondence<\/h3>\n\n\n\n
- \n
- File state employment tax returns throughout the year and remit state employer and employee taxes.<\/li>\n\n\n\n
- Remit federal employer and employee taxes via 1040-ES<\/a> estimated tax payment voucher four times each year.<\/li>\n\n\n\n
- Each year end, prepare Schedule H and file with Form 1040<\/a>; prepare and distribute Form W-2<\/a> to each employee; file Form W-2 Copy A\/Form W-3<\/a> with the Social Security Administration (SSA).<\/li>\n\n\n\n
- Manage ongoing alerts and notices from the state (tax rates and labor law is subject to change at any time.<\/li>\n<\/ul>\n\n\n\n
Minimum wage rate<\/h3>\n\n\n\n
The current minimum wage in South Carolina is $7.25\/hour.<\/p>\n\n\n\n
South Carolina overtime requirements<\/h3>\n\n\n\n
- \n
- Live-out employees must be paid 1.5x their hourly rate for all hours worked over 40 in a workweek.<\/li>\n\n\n\n
- Live-in employees are not required to be paid overtime. <\/li>\n\n\n\n
- Overtime is not required to be paid when work is performed on a holiday. <\/li>\n<\/ul>\n\n\n\n
Pay frequency requirement<\/h3>\n\n\n\n
Generally, household employers in South Carolina are required to pay their employees on a weekly basis.<\/p>\n\n\n\n
State disability insurance<\/h3>\n\n\n\n
The South Carolina Temporary Disability Insurance Program (SDI) provides disability insurance<\/a> 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.<\/p>\n\n\n\n
Optional benefits for your employee <\/strong><\/h2>\n\n\n\n
Health insurance<\/h3>\n\n\n\n
Families with only 1 employee can make contributions toward their employee\u2019s 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.<\/p>\n\n\n\n
Families with 2 or more employees have 3 options:<\/p>\n\n\n\n
- \n
- Set up an Individual Coverage Health Reimbursement Arrangement (ICHRA).<\/li>\n\n\n\n
- Set up a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA).<\/li>\n\n\n\n
- Purchase a policy through SHOP (Small Business Health Options Program). <\/li>\n<\/ol>\n\n\n\n
Visit our health insurance page<\/a> for more information about these options. <\/p>\n\n\n\n
Mileage reimbursements<\/h3>\n\n\n\n
The current federal mileage reimbursement rate is 70 cents per mile and only <\/em>covers miles driven by your employee while on the job. Miles driven commuting are not eligible for reimbursement.<\/p>\n\n\n\n
Ending employment <\/strong><\/h2>\n\n\n\n
Termination notice requirement<\/strong><\/h3>\n\n\n\n
- Each year end, prepare Schedule H and file with Form 1040<\/a>; prepare and distribute Form W-2<\/a> to each employee; file Form W-2 Copy A\/Form W-3<\/a> with the Social Security Administration (SSA).<\/li>\n\n\n\n
- Manage unused paid time off<\/a>. <\/li>\n\n\n\n
- Mileage reimbursement<\/a> <\/li>\n<\/ul>\n\n\n\n
- Pay at least South Carolina minimum wage<\/a>, weekly. <\/li>\n\n\n\n
- Set up EIN & state tax account(s)<\/a>.<\/li>\n\n\n\n