Determination engine

Which state do you actually withhold in?

Reciprocity, convenience-of-the-employer, nonresident thresholds and unemployment localization, applied together to one employee's facts. Every answer cites the state source it came from.

Withhold South Carolina income tax.

The work state does not tax these wages, so the residence state governs.

Income tax withheld to

South Carolina

Graduated, top rate 6%

Employee certificate

None required

No state withholding allowance certificate applies.

Unemployment insurance

Georgia

Localized under factor 1: Localization.

Reciprocal agreement

Georgia has no reciprocal agreements.

✓

Below the Georgia nonresident threshold

Georgia applies a de minimis test of 23 days or $5,000 of in-state wages before nonresident withholding begins. Per the Georgia Employer's Withholding Tax Guide, employers must withhold from a nonresident employee if more than 5% of the employee's total earned income is attributable to Georgia OR more than $5,000 of wages is attributable to Georgia. O.C.G.A. Sec. 48-7-1(11)(A) separately sets a 23-day-in-Georgia threshold for nonresident taxability. Treat 23 days OR $5,000 OR 5%-of-income as the trigger; the 5% percentage test has no dollar equivalent and must be computed separately.

Track this, because it flips mid-year

Once the threshold is crossed, most states require withholding on all in-state wages for the year, not just the excess. Set an alert well before the limit.

South Carolina also taxes this income, with a credit

The residence state taxes worldwide income. The employee claims a credit on the South Carolina return for tax paid to Georgia, which prevents true double taxation but usually still leaves a balance if South Carolina's rate is higher. Some employers withhold for both states; many withhold only for Georgia and let the employee manage the difference.

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Employer registrations you will need

South Carolina — Income tax withholding: South Carolina Department of Revenue
Georgia — Unemployment insurance: Georgia Department of Labor

Georgia profile South Carolina profile Full write-up for this pair

Change the inputs

Withholding determination

Answer six questions. The result is a shareable link, so you can paste it into a ticket or an email.

Employee lives inState of residence

Work is performed inWhere the employee physically sits

Employer is based inWhere the work is directed from

Days in the work stateThis calendar year, leave blank if unknown

Wages from work-state daysUS dollars, leave blank if unknown

Arrangement Works remotely rather than at an employer location Remote work is an employer necessity, not employee preference

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This is a determination aid, not advice. StateSide encodes published state rules and applies them mechanically to the facts you enter. It does not know your entity structure, your nexus history, your equity compensation, or the dozens of exceptions that turn a clean rule into a judgement call. Every determination cites the state source it came from — verify against that source, and take anything consequential to a payroll tax professional before you act on it.