A South Carolina independent contractor agreement is a document that lays out the terms under which an independent contractor will perform work for a client. It includes details about compensation, work ownership, termination, and the reimbursement for expenses.
- Worker Classification: Common Law
- Tax Structure: Graduated-Rate Income Tax
- Definition: South Carolina doesn’t have an official definition of an independent contractor.
- At-Will Employment: Yes
Independent Contractor Definition
While South Carolina law doesn’t offer an official definition of independent contractor, case law has helped the state settle on a definition.
According to Chavis v. Watkins, 180 S.E.2d 648, an independent contractor is someone who:
- Has independent employment
- Contracts to complete a project according to their own routines
- Is free from the client’s control except for the results of the work
Worker Classification Test
South Carolina uses the IRS’s common law approach to determining whether a worker counts as an independent contractor or employee. Primarily, the classification focuses on how much control the employer has over the worker, including how much direction the employer can provide.
South Carolina may look at whether the employer furnishes the equipment or tools necessary to do the job, how and when the worker gets paid, and whether the employer has the right to fire the worker performing the task.
It’s possible to summarize this test into three main categories:
- Behavioral control (Are instructions/training provided?)
- Financial control (Does the worker commit a significant initial investment into supplies?)
- Type of relationship (Is the relationship indefinite, or is there a clear end date?)
Rights and Responsibilities
Independent contractors in South Carolina have some freedoms that allow them to control their work. They have the right to determine where they work and what hours they use for many of their essential work tasks.
Independent contractors also have the right to accept work tasks from multiple employers at the same time. Employers cannot govern the number of hours independent contractors have to use to complete their projects.
State Taxes
Income tax in South Carolina can range from 0% to 6.5% and may depend on how much independent contractors earn each year. [1]
Independent contractors in South Carolina will also need to make arrangements to pay their federal income taxes and self-employment taxes, which cover Medicare and Social Security taxes. [2]
Filing for Unemployment
Independent contractors do not have the right to file an unemployment claim in South Carolina.
Sample
Review our South Carolina independent contractor agreement and download it as a PDF or Word file below:
