Chapter 13 of 196% of exam
South Carolina Labor & Employment
South Carolina imposes a strict work-authorization rule, and worker classification is scrutinized on every job. This chapter covers E-Verify and the employee-versus-contractor test.
E-Verify
South Carolina's Illegal Immigration Reform Act requires all private employers to enroll in and use the federal E-Verify program to confirm each new hire's work authorization. This is stricter than federal law, which does not mandate E-Verify for most private employers.
Employee versus independent contractor
A worker whose schedule, tools, and methods the contractor controls is an employee under the IRS common-law test, regardless of a 1099. Misclassifying an employee as an independent contractor exposes the contractor to back FICA, FUTA, and unemployment taxes plus penalties.