Yes. Your employee can work for you in another state. You will have to withhold South Carolina income tax.
South Carolina says: "Wages are taxed in the state in which they are earned unless the employee is working in a state that does not withhold state income tax. If the employee is working in South Carolina, regardless of where he/she is a resident, the income earned in South Carolina is taxed by South Carolina."
South Carolina Withholding Tax
You don't have to withhold Georgia tax. Your employee does not have to pay GA tax if they live and work in SC.
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