S.C. Employment Security Commission

Unemployment Insurance

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Wages Defined

The term "wages" includes:

  1. All remuneration paid for personal service, including bonuses and commissions, paid to all workers of all ranks, including officers of a corporation.
  2. The cash value of all remuneration paid in any medium other than cash.
  3. All tip income.
  4. Reasonable compensation for services provided, including K-1 distributions.
  5. Monies paid for time lost due to sickness or accident, unless paid out of benefit funds or other special accounts.
  6. Expense allowances, which are not regularly and reasonably segregated.
  7. Dismissal wages, which do not represent the worker’s interest in a pension fund.
  8. All monies paid before any deductions for such items as: board, lodging, union dues, employee payments to pension or benefit funds, social security tax, premiums on group insurance.

Please note that the wages listed on the following chart should not be construed as a complete list of types of taxable wages. Many payments/deductions do not fall within the scope of the South Carolina Employment Security Law nor has there been an established policy. Any questions concerning specific payments/deductions should be addressed to:

S. C. Employment Security Commission
Wage Records Section
PO Box 995
Columbia, SC 29202

 

Types of Wages

Type of Payment: Treatment under UI Law:
Advances – Payments for future work. Taxable
Airline Travel – non-business – employer provided – IRS Code Sections 61, 132, 162, 274 Taxable
Alien – nonresident – student, trainee, or teacher covered by Section 101(a)(15)(F)(J)(M) or (Q) of the Immigration and Nationality Act. Exempt Wages, if less than 22 years of age and service is approved "on-the-job" training program.
Automobile – provided by employer – personal use – IRS Code Section 61, 132, 274(d), 280(f) Taxable
Back Pay (paid under a court order, administrative decision, or settlement agreement) Taxable
Bonuses Taxable
Cafeteria Plan – employer contributions – IRS Code Section 125 Exempt
Cash or deferred arrangements (401(K)) by employee Taxable
Casual Labor  – not in the course of business Exempt
Commissions  – other than real estate and insurance agents paid solely by way of commission Taxable
Commissions  – only of real estate and insurance agents paid solely by way of commission Exempt
Corporate Officers Taxable
Death benefits – Gifts to Family – IRS Code Section 101(b) Exempt
Deceased employee’s wages – IRS Code Section 101(b) Taxable
Dismissal or Severance Pay – IRS Code Section 61(a) Taxable
Disability insurance –employer payment Exempt
Disability – long term (over 6 months) – IRS Code Section 105 Exempt
Draws or advances against future earnings Taxable
Employment agency fees – employer paid to agency Exempt
Entertainment – employer provided (theater tickets, athletic facilities) Taxable
Employment Contract cancellation – lump-sum settlement Taxable
Equipment, Tool, Uniform allowances Exempt
Gifts – cash or merchandise Taxable
Golden parachute payments – Excessive Termination Payments – IRS Code Sections 280(g), 49999 Taxable
Idle Time (standby) pay – pay for time not worked Taxable
Individual Retirement Account – IRA – qualified plan – employer contribution Exempt
Individual Retirement Account – IRA – employee contribution – IRS Code Section 408(k) Taxable
Jury duty supplemental pay – difference between regular wages and amount received for jury duty. Taxable
Life Insurance premiums – employer paid – not under a qualified plan Taxable
Life Insurance premiums – employer paid under a qualified plan – IRS Code Section 79 Exempt
Life Insurance premiums – employee paid through payroll deduction (not cafeteria plan) Taxable
Life insurance proceeds – from policies purchased by employer for employee Exempt
Meals and Lodging Taxable
Medical and dental care insurance premiums – employer payment under qualified plan. Exempt
Medical and dental care insurance premiums – employee salary deduction – not cafeteria plan Taxable
On-Call pay – payment to employee for time available to work if called Taxable
Per Diem Allowances Exempt
Severance or dismissal pay Taxable
Sick or disability pay – bona fide – IRS Code Section 162; 3306(b)(4) Exempt
Sick Pay – regular – 3306(b)(4) Taxable (six month limitation)
Sick Pay – Third Party – IRS Code Section 6051 Exempt
Step-children, foster children of sole proprietor Exempt (under the age of 18)
Step-parent, foster parent of sole proprietor Exempt
Tips - IRS Code Sections 3402, 6041, 6053 Taxable
Uniform allowance or reimbursements Exempt
Vacation Pay Taxable
Workers’ compensation supplemental pay – employer payment – IRS Code Sections 104(a), 105(a), 105(c) Exempt

 

    
Page last updated:  07/22/02 08:56 AM