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South Carolina Withholding and Forms W-2 South Carolina Department of Revenue www.sctax.org.

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Presentation on theme: "South Carolina Withholding and Forms W-2 South Carolina Department of Revenue www.sctax.org."— Presentation transcript:

1 South Carolina Withholding and Forms W-2 South Carolina Department of Revenue

2 Code Section Agents shall furnish statements to taxpayers and department; contents. Agents shall furnish statements to taxpayers and department; contents. A. A person required to withhold income tax under this chapter, or who would have been required to withhold a tax under Section if the taxpayer claimed a single exemption shall furnish on or before January 31 st of the following year a properly completed federal wage and tax statement or federal 1099 to the taxpayer with respect to the remuneration paid during the calendar year,

3 EMPLOYEES

4 Incomes subject to withholding An employer paying wages to an employee shall withhold income tax for that employee if at the time of payment the wages are expected to equal one thousand dollars or more during the year

5 Wages not subject to SC withholding 1) Wages of a resident employee receiving wages in another state if: 1) Wages of a resident employee receiving wages in another state if: a) the wages are subject to the withholding laws of the state in which they are earned; and a) the wages are subject to the withholding laws of the state in which they are earned; and b) the employer is withholding income taxes on behalf of the other state. b) the employer is withholding income taxes on behalf of the other state. 2) Wages of an employee obtaining a waiver from withholding pursuant to Section 12 ‑ 8 ‑ ) Wages of an employee obtaining a waiver from withholding pursuant to Section 12 ‑ 8 ‑ 1040.

6 Wages not subject to SC withholding 3.) Wages of spouses who are eligible for the Military Spouses Residency Relief Act: a) PL was signed into Federal law on November 11, 2009 b) Income of servicemember’s spouse is not taxable to the state where the services are performed. c) Prior to the Act, nonresident military spouse’s income for services performed in South Carolina would be taxed in South Carolina.

7 Military Spouses Residency Relief Act Requirements  Servicemember is in South Carolina as a result of military order  Servicemember and spouse have the same state of domicile  South Carolina is not the state of domicile  Spouse resides in the state solely in order to live with the servicemember

8 SC W-4  A service member’s nonresident spouse claiming an exemption from SC withholding tax  Must be completed before January 1 st  SC Revenue Ruling #10-5

9 Filing WH-1605 WH-1605  Last day of the month following quarter end  When the withholding account is closed  File amended return

10 Filing WH-1606 WH-1606  Last day of February  When the withholding account is closed  File amended return

11 W-2’s and 1099’s How do you submit W-2s and/or 1099s to SC DOR  Electronically via (W-2s only)  CD-ROM  Paper Forms

12 W-2’s and 1099’s Electronic Filing  Not available for 1099 Series Forms  Not available for W-2G, W-2C

13 Filing WH-1612 WH-1612  With CD-ROM  With paper

14 Closing a withholding file number Methods Methods Form C-278 Form C-278 WH-1605 or WH-1606 WH-1605 or WH-1606 eWithholding eWithholding TeleFile TeleFile

15 Closing a withholding file number Items that are submitted to DOR Items that are submitted to DOR 1.Complete W-2’s and 1099 and WH-1612 if required 2.Complete the last WH Complete WH Complete SC-8822

16 Code Section Refund of credit for overpayment Refund of credit for overpayment (A) A refund or credit may be allowed for an overpayment of tax withheld pursuant to the chapter to: (1) the withholding agent to the extent that the withholding agent did not withhold the overpayment amount from the taxpayer; or (2) the taxpayer to the extent that the overpayment was withheld from the taxpayer.

17 Code Section Refund of credit for overpayment Refund of credit for overpayment (B) A refund or credit may be granted to a withholding agent who has withheld taxes in error if the withholding agent has refunded or unconditionally credited the amount erroneously withheld to the taxpayer and the amount is refunded or credited to the taxpayer before the issuance of the original wage and tax statement for the calendar year.

18 Corrected W-2  Use W-2C to correct errors on Form W-2  Submit with amended WH-1605 and WH-1606  Can not reduce South Carolina State income tax

19 SC Withholding Reconcile withholding before issuing W-2 and 1099 Forms Reconcile withholding before issuing W-2 and 1099 Forms No inactive status – Withholding is either open or closed No inactive status – Withholding is either open or closed Always file a return if withholding account is open Always file a return if withholding account is open Close the withholding account if no payroll Close the withholding account if no payroll File all required quarterly return(s) when you close your business File all required quarterly return(s) when you close your business

20 Questions

21 Thank You


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