Getting a SC Withholding Booklet
I didn't receive or cannot find my Withholding booklet. May I get another one?
I need to order more payment coupons.
To order a new booklet, you have two (2) options:
1) You may complete form WH-400 which is a Withholding Tax Booklet Reorder form and mail it to the SCDOR or
2) You may call 1-803-898-5752 and request that a booklet be reordered for you. You must have the name and current mailing address of the business available as well as the South Carolina Withholding account number (a nine digit number that begins with 25).
How long does it take for a withholding booklet to arrive after it is ordered?
It takes approximately 3 weeks for a booklet to arrive after it has been ordered.
Making a Withholding Payment
What is the withholding tax rate for South Carolina?
The tax rate for South Carolina is a graduated rate from 2 to 7 percent. It is built into the tax tables.
I need to make a payment today. What is the easiest/fastest way to get the payment to you?
You may use our ePAY system on the internet. No pre-registration is required. Simply go to our website, www.sctax.org, and click on DORePAY (Electronic Payment System) on our homepage. Follow the step-by-step instructions. You may make the payment using either electronic funds withdrawal (bank draft) or a credit card.
I am out of payment coupons and I need to make a payment today. May I make a copy of a previous year's coupon, correct the year and take my payment to the bank?
No. Effective January 1, 2006 banks may no longer accept withholding payments. If you need to make a payment and do not have any pre-printed coupons, use a blank coupon (WH-1601X) that you can download from the our website and send it with a check made out to SCDOR to the address on the bottom of the coupon. Or you can always use ePAY.
I need to make a payment for a previous quarter. May I take the payment to the bank? May I make the payment electronically?
No. Effective January 1, 2006 banks may no longer accept withholding payments. Only timely payments may be made electronically. Late payments must be mailed directly to SCDOR in order to ensure that they are posted to the correct quarter.
Payment Due Dates
When am I required to make my South Carolina withholding payments? When are my payments due?
Resident Withholding agents: State tax payments are due the same time that federal payments are due. You must follow the federal guidelines.
Nonresident Withholding agents: State tax payments are due on a quarterly basis if the total SC tax withholding is less than $500.00 per quarter. If due quarterly, the remittance is due by the last day of the month following the end of the quarter.
State tax payments are due on a monthly basis if the SC tax withholding amount is $500.00 or more in a quarter. If due monthly, the remittance is due by the 15th of the following month.
If the pay period ends on March 30th and paychecks for this pay period are issued on April 4th, in which quarter should the withholding payment be included?
The date of the employee's paycheck determines the quarter in which the withholding is included. Taxes are withheld when the wages are paid (date of the paycheck), not when the wages are earned (the pay period). Therefore, the taxes would be included in the 2nd quarter withholdings since the paycheck was dated April 4th.
Overpayments/Refunds
If I overpaid in a quarter, will I be given a credit for this amount in the next quarter?
No. You should request a refund of the overpayment on the quarterly return. An overpayment will be refunded to you. No credits are allowed.
Making Electronic Payments
May I make my withholding payments electronically?
Yes. Any withholding agent may make their withholding payments by either our ePAY system (using the internet) or by our EFT program (which uses the telephone or the internet.) The ePAY system is available anytime with no registration required. Registration is required in order to participate in the EFT program. Contact the EFT Helpdesk for further information at 898-5740 for local calls or 1-800-476-0311 for long distance calls.
Am I required to make my payments by an electronic method?
Withholding agents who withhold $15,000 or more in SC state tax per quarter are required to pay taxes with immediately available funds. This would be by using one of our electronic methods of payment – EFT or ePAY.
If I make my payments by EFT, do I need to send in the WH-1601?
No.
Filing Withholding Returns
What are the due dates for my withholding returns?
The withholding quarterly returns are due by the last day of the month following the end of the quarter.
FORM QUARTER DUE DATE
WH-1605 1st (Jan-Feb-Mar) due by Apr 30th
WH-1605 2nd (Apr-May-Jun) due by Jul 31st
WH-1605 3rd (Jul-Aug-Sep) due by Oct 31st
WH-1606 4TH (Oct-Nov-Dec) / Annual (Jan-Dec) last day of February
The withholding 4th quarter/annual return is due by the last day of February.
If I have no withholding during a quarter, am I required to file a quarterly return WH-1605?
Yes. If the withholding account is open, quarterly returns must be filed each quarter. If a return is not filed, you will receive a Failure to File notice. You may file the return either by sending in the paper copy of the return or by TeleFiling.
NOTE: Please do not fax copies of your return to us for processing. The returns are scanned into our system and the quality of faxed copies is often not very good. Either TeleFile your returns or mail them to the address listed on the form.
Answering TeleFile Questions
How do I qualify to file my withholding tax return using Telefile?
You qualify to file your withholding tax return by Telefile if no payment is due with the return. You may also file your withholding return using TeleFile if you are due a refund.
When can I Telefile my withholding tax return?
A withholding tax return may by filed anytime, 24 hours a day, 7 days a week using a touchtone phone.
Do I have to apply to use the Telefile system?
There is no application to complete in order to use the Telefile system. However, first time users are required to register and select a "PIN" number during your initial call.
Is there a fee charged in order to Telefile my withholding tax return?
No. There is no charge.
What number do I call to Telefile my withholding tax return?
Call 1-803-898-5918 to Telefile a withholding return.
Who do I contact for assistance when trying to Telefile my withholding return?
If you have a problem when calling to TeleFile your return, contact the TeleFile Helpdesk (during regular business hours) at 1-803-898-5111 for assistance.
May I submit my 4th Quarter/ Annual Reconciliation (WH-1606) by Telefile?
Yes, you may do so as long as no taxes are due with the return. If you Telefile the WH-1606, do not submit a paper copy of the return.
Receiving Notices – What Do They Mean
I received a notice for failure to file a quarterly reconciliation, but I did not have any employees for the period mentioned. Why did I receive this notice?
If the withholding account is open, the system is going to check each quarter to be sure the appropriate returns are filed. If the system does not find a return, a failure to file notice is sent to you. If you are going to have employees in the near future, the account must remain open and you must file a return for the quarter in question showing zero withholding. If you are not going to have employees in the near future, the account should be closed as of the date of your last payroll.
I have never had any employees. Why am I getting notices saying that I failed to file returns?
In cases like this, a SCTC-111 (Business Tax Application) was usually sent in requesting a withholding account number in error. You have two (2) options:
1) You should download a copy of form C-278 (Account Closing Form) from the Forms and Instructions section of our website (www.sctax.org). Complete and mail to the address on the top of the form in order to close your account or
2) You may call SCDOR at 1-803-898-5752. Have your South Carolina Withholding number available when you make the call.
I have received a Proposed Notice of Adjustment (WH-1613T) stating that I owe taxes for a past period. May I pay the taxes by ePAY or by EFT?
No, you may not pay the amount due on the Proposed Notice of Adjustment using either of the above mentioned methods. Simply attach a check for the amount due to a copy of the notice you received and mail it to the SCDOR. This is the only way to insure that the payment is posted to the correct withholding account and quarter and that the notice is satisfied.
I have received a Proposed Assessment (C-293) or an Assessment (C-133) stating that I owe taxes for a past period. May I pay the taxes by ePAY or by EFT?
You may pay the amount owed by using ePAY from our website. Simply click on the DORePAY icon from our homepage. Then click on Delinquent Tax Bill as the type of payment that you are trying to make. Make sure you have the Bill Number or Receivable Number from the notice. Follow the steps through the program. You will be given the option to pay by electronic funds withdrawal (bank draft) or by credit card.
You may also write a check, attach it to a copy of the notice and mail it to the SC Department of Revenue at the address on the notice.
You may not pay the amount due by EFT or through the Withholding payment section of ePAY.
I have received a Notice of Assessment for Failure to File a return for Withholding taxes, but I did send in the return on time. Why did I receive this notice and what do I do?
A return may have been sent, but for some reason SCDOR did not receive it.
You should pull your copy of the return and verify that it is for the same quarter as the Notice. You can then TeleFile the return if no payment is due with the return. If a payment is due, send the payment along with a copy of the return to SCDOR. Filing the return by TeleFile or paper will satisfy the Notice.
I have received a Notice of Assessment for Failure to File a return for Withholding taxes. Do I owe this amount? I thought that I had paid the taxes for this quarter.
You may not owe this amount. First, verify for which quarter the Notice was sent. Also check your records to verify that you made all payments for the quarter. The Notice was sent for Failure to File a withholding return. It does not mean that SCDOR did not receive your payments. It just means that SCDOR did not receive your return. You may TeleFile the return or mail a paper copy of the return to the address on the form. Once the return is received (by either method), the notice will be satisfied.
Submitting W-2's, 1099's and/or Magnetic Media
How do I submit my W-2's and/or 1099's if I have Telefiled my 4th Quarter/ Annual Reconciliation (WH-1606)?
If you have Telefiled your WH-1606, you must submit your W-2's and/or 1099's with Form WH-1612. Do not submit the W-2's with the paper form WH-1606. This would create a duplicate filing and create problems in your withholding account.
Do I need to send a copy of the 1099's to SCDOR?
Send copies of 1099's to SCDOR only if there is South Carolina withholding listed on the form. If there is no SC withholding, you do not need to send us a copy of the form.
When preparing the W-2's, a mistake was made. I have already given the incorrect W-2's to my employees. What do I do? Is it a problem that I left off (or used the wrong) SC Withholding number on the W-2?
You must provide your employees with corrected W-2 information. You should prepare W-2C's for each employee. If this is not possible, you may prepare a letter on company letterhead stating the wrong information and the corrected information. A copy of this letter must be given to each employee with instructions that they must furnish a copy of the letter with their W-2 when they file their individual income tax return. You should also send a copy of this letter to SCDOR.
An incorrect SC Withholding number will cause problems for taxpayers trying to file their individual income tax returns.
My employer will not furnish me with a copy of my W-2. How do I file my individual income tax return?
You may still file your individual income tax return using a Substitute W-2 form. This is form SC4852 and can be downloaded from our website.
I need information about magnetic media.
Only MMREF format will be accepted.
Submit the magnetic media with the WH-1612.
W-2's and 1099's should be submitted on separate magnetic media.
Download the RS-1 Magnetic Media Specifications booklet from our website by clicking on Publications and then scrolling down to the section on Tax Manuals.
How do I get information about filing W-2 information on Magnetic Media?
You can download a copy of the Magnetic Media reporting requirements from our website, www.sctax.org, by clicking on Publications and then scrolling down to the section called Tax Manuals. The RS-1 Magnetic Media Specifications manual is located here.
Obtaining W-4 Information
Where do I get a copy of the South Carolina W-4 form?
Where do I get a copy of the South Carolina payroll exemption form?
South Carolina does not have its own W-4 form. We accept the Federal W-4. If an employee wants to claim a different number of exemptions for South Carolina, they simply fill out another Federal W-4 form, write "for South Carolina purposes only" across the form, and show the number of exemptions that they want to claim.
Important: Per South Carolina Code of Law Section 12-8-1010(A) (2) Employees may not claim more exemptions for SC than they claim for Federal, but they may claim less.
Determining When to Withhold
South Carolina Code of Laws
I have an employee that lives in another state but works in South Carolina. Which state taxes do I withhold?
Wages are taxed in the state in which they are earned. If the employee is working in South Carolina, regardless of where he is a resident, the income earned in South Carolina is taxed by South Carolina. This, and more, is covered in Article 5 of the South Carolina Code of Laws Section 12-8.
I have an employee that lives in South Carolina but works in another state. Which state taxes do I withhold?
Again, the answer is that 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 a South Carolina resident and is working in a state that does not have state income tax, you should withhold South Carolina tax. Florida, Texas, and Tennessee are examples of states that have no state income tax. If a South Carolina resident is working in one of these states, then SC taxes would be withheld. This is covered in the South Carolina Code of Law Section 12-8-520(C).
Answering Questions Involving Other Agencies
I need to know the unemployment rates.
I need to get some information about SUI.
I sent in this information on the Form UCE.
These questions are all about unemployment and you will need to contact the SC Employment Security Commission at 1-803-737-2400.
I need information concerning Contingency Assessments. (This information is usually requested by some Quick Books software.)
You will need to contact the South Carolina Employment Security Commission at 1-803-737-3090.
I have been told that there is a law that I report all new hires. To whom do I report this?
New hires are reported to the Department of Social Services (DSS) at 1-803-898-9468.
What is the number of the Internal Revenue Service (IRS)?
For Federal assistance the IRS has a Business & Specialty Tax Line at 1-800-829-4933.
