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 North Carolina income tax.

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

Income tax withheld to

North Carolina

Flat 3.99%

Employee certificate

None required

No state withholding allowance certificate applies.

Unemployment insurance

South Carolina

Localized under factor 1: Localization.

Reciprocal agreement

South Carolina has no reciprocal agreements.

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Below the South Carolina nonresident threshold

South Carolina does not require nonresident withholding until South Carolina-source wages exceed $800. You entered $0. COST's multistate chart reports an $800-per-calendar-year South Carolina wage threshold for nonresident employee withholding. The SCDOR Withholding Tax Information Guide (WH-105) as fetched did not state this figure -- treat as unconfirmed and verify with SCDOR before relying on it.

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.

North Carolina also taxes this income, with a credit

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

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Employer registrations you will need

North Carolina — Income tax withholding: North Carolina Department of Revenue
South Carolina — Unemployment insurance: South Carolina Department of Employment and Workforce (DEW)

South Carolina profile North 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.