"Employment" means service performed for wages under a contract of hire, written or oral, expressed or implied, including service in interstate commerce.

 

DEW or an employer in accordance with S.C. Code, Regulation 47-23 can offer any individual work.

 

For DEW law to cover a worker, the worker must work "within this state." This doesn’t mean he must perform all work within South Carolina. His work is considered in state if:

1. Most services are performed in South Carolina and he works outside the state only at temporary or occasional tasks; or
   
2. He works some in South Carolina and his base of operations or the place he is directed from is in South Carolina; or
   
3. His residence and some of his work is in South Carolina and neither the base of operations nor place from which he’s directed is in any other state where he performs some work.

When a worker is employed in and outside South Carolina but is considered in "employment in this state," contributions are payable on his entire wages.

Employment by a United States citizen performed outside the United States (except Canada and the Virgin Islands) in the employ of an American employer is considered employment in this state if:

1. The employers' principal place of business in the United States is located in this state; or
   
2. The employer has no place of business in the United States but
   
   1. is an individual and a resident of this state; or
      
   2. is a corporation organized under this state’s laws;
      
   3. or the employer is a partnership or a trust and the number of the partners or trustees who reside in this state is greater than the number who reside in any one other state; or
      
3. The employer has elected coverage in this state, or the employer having failed to elect coverage in any state, the worker has filed a claim for benefits, based on such service, under this state’s laws.

 

DEW law considers wages earned in certain employment to be exempt. Exempt Employees

 

Americorps program participants perform full-time or part-time public service in exchange for post-service educational benefits. The National and Community Service Act of 1993 established this program whereby National Service grants funds to states, which in turn grant funds to local non-profit organizations and educational institutions that operate the National and Community Service Programs. Participants are considered exempt employment. Do not report them on your quarterly Contribution and Wage Report. Further, stipends given to participants for living expenses are not considered "wages." Do not include them when reporting "total" and "taxable" wages. Questions? Contact the Employer Status Section at 803.737.3075.

 

Employee leasing represents a business service where a company transfers some or all of its employees to an employee leasing company. The transferring employer (or client) then leases the employees from the leasing company for a fee.

After entering into a contractual agreement, the leasing company sometimes assumes that it has become the employer of the individuals who are leased back to its client. Unfortunately, this position conflicts with DEW rules and regulations. No provision allows a leasing company to report the wages of client companies.

Our position is based on the old English common law definition of master-servant. That definition holds that the employer is the one for whom the services are performed and he has the right to direct and control the individual performing the services. Our position, upheld by the courts, holds that the client company is the employer because services are performed for them, and they retain the right to direct and control the individual performing the services.