How do I register as a household employer in South Carolina?

Start with a federal EIN, then register with South Carolina for each account that applies to you. Apply for a federal EIN at IRS.gov. It is free and takes about 15 minutes. Register with South Carolina's unemployment insurance agency once you cross $1,000 in any calendar quarter. Most states want this within 20 days of becoming a covered employer.

What payroll taxes does South Carolina charge for a household employee?

Federal FICA and FUTA, South Carolina SUTA, and anything else below that applies to you. Federal FICA: 7.65% employer share, matched by your nanny. Federal FUTA: 6.0% on the first $7,000, an effective 0.6% after the state SUTA credit. South Carolina SUTA: 0.06% - 5.46% on a state-specific wage base, with a separate rate for new employers. No state income tax withholding required for household employees, though the wages stay taxable to your nanny on their own South Carolina return.

What are South Carolina's minimum wage and overtime rules for nannies?

At least $7.25 an hour for a nanny in South Carolina. South Carolina sets no rate above the federal floor, so the federal minimum is what binds. Some cities and counties may set a higher floor, so check your locality before you set a rate. Overtime is 1.5x pay for hours over 40 in a week, under the FLSA. Live-in nannies are exempt from FLSA overtime, but not from minimum wage. Source: US DOL, State Minimum Wage Laws.

Can I require my nanny to use direct deposit in South Carolina?

No. South Carolina does not let an employer require direct deposit, so your nanny has to opt in. Get a written, signed authorization anyway. Federal Regulation E sets the floor, and South Carolina adds an employee-consent rule on top.

What records do I need to keep for a South Carolina household employee?

Keep them for at least 4 years after the return reporting the tax was due, or the tax was paid, whichever is later. Timesheets, pay stubs, W-2 copies, payment confirmations and SUTA filings. South Carolina follows the federal baseline, so 4 years covers both. Most household-employer audits open with the IRS or a state agency asking for exactly these records, so keep them with your tax filings. Source: IRS Publication 926.

All State Guides

South Carolina Nanny Tax Guide

South Carolina excludes domestic services performed in a private residence from the wages its withholding law reaches (S.C. Code Ann. § 12-8-520(D)(2)), so you are not required to withhold South Carolina income tax from your nanny's paycheck and NannyKeeper does not.

South Carolina household employer quick facts

Applies in South Carolina

State unemployment

Not in South Carolina

State income tax withholding
Disability insurance
Paid family leave

Minimum Wage

$7.25/hour (federal)

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SUTA Rate Range

0.06% - 5.46%

New employers: 1% on the first $14,000 (2026). South Carolina Department of Employment and Workforce

Key things to know

No state income tax withholding for domestic workers
Uses federal minimum wage
No disability or paid leave requirements
Employer SUI still required on the first $14,000 in wages

South Carolina Employer Requirements

State Income Tax (Exempt)

S.C. Code Ann. § 12-8-520(D)(2) excludes domestic services performed in a private residence from the definition of "wages", alongside farm labor and ministerial services, so withholding is not required. South Carolina does allow it voluntarily: the SCDOR's WH-105 guide says that "if you voluntarily withhold taxes from sources that do not require withholding, such as farmers, domestic help, fishermen, or ordained pastors," the agency lets you file and pay annually, and § 12-8-520(E) permits withholding "in addition to that required under this section" where the employer and employee agree. NannyKeeper does not currently offer that option, so nothing is withheld. Your nanny is responsible for paying any South Carolina income tax they owe when they file their return.

State Unemployment Insurance

Employers pay SUI tax on the first $14,000 of wages. New employer rate is 1.0%, with 2026 rates ranging from 0.06% to 5.46% based on experience.

Workers' Compensation

South Carolina doesn't require workers' compensation for most household employers: you're exempt with fewer than 4 employees, or if your total payroll last year was under $3,000. It's still worth considering: it protects your employee if they're injured at work, and protects you from potential liability.

South Carolina household employer questions

What will it cost?

Wondering what you'll actually owe as a South Carolina employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.

This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.

Verified accurate as of June 2026Sources: South Carolina tax agency, IRS Publication 926

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South Carolina Nanny Tax Guide

South Carolina household employer quick facts

South Carolina Employer Requirements

State Income Tax (Exempt)

State Unemployment Insurance

Workers' Compensation

South Carolina household employer questions

What will it cost?

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