South Carolina Withholding Tax Information Guide Form-105 printable pdf download

STATE OF SOUTH CAROLINA

1350

DEPARTMENT OF REVENUE

FORM-105

(Rev. 11/4/16)

SOUTH CAROLINA WITHHOLDING TAX

8004

INFORMATION GUIDE

PURPOSE

This information guide briefly explains the South Carolina income tax withholding law. It is not designed to answer all

questions which might arise, but is intended to enable employers/withholding agents to become familiar with South Carolina

income tax withholding requirements.

WHO MUST WITHHOLD

Every employer/withholding agent having an employee earning wages in South Carolina and who is required to make a

return or deposit with the Internal Revenue Service shall make a return or deposit to the South Carolina Department of

Revenue any taxes that have been withheld for state purposes. All South Carolina employers are required to withhold tax

from employee wages at the same time employees are paid.

It is important to remember that South Carolina state taxes are withheld when wages are earned while working in South

Carolina. An employee who works in another state but is a resident of South Carolina will have taxes withheld for the other

state unless that state does not have an income tax. In that case, South Carolina taxes must be withheld since it is the

employee's state of legal residence.

In addition to withholding from wages, South Carolina requires withholding from royalties, prizes, winnings, nonresident

contractors (contracts exceeding $10,000), rental payments made to nonresidents who own five or more residential units or

one or more commercial properties in South Carolina, and withholding required by the 2008 Illegal Immigration Reform Act.

W4 REQUIREMENTS

The IRS provides W4 forms. There is no separate SC W4 form except for nonresident spouses of servicemembers.

Secure a signed withholding exemption certificate from each employee. Employers must withhold at the rate of zero

exemptions if no exemption certificate is provided. If the number of exemptions for federal and state are the same, only one

federal W4 form should be completed. If claiming a different number of exemptions for state than federal, a separate W4

must be completed and marked "For State Purposes only". An employee is not allowed to claim a greater number of

exemptions for state purposes than the exemptions claimed for federal purposes. If an employer receives a withholding

exemption certificate from an employee claiming ten (10) or more withholding exemptions or the employer believes a

certificate is incorrect, the employer must furnish a copy of the certificate to the South Carolina Department of Revenue

(SCDOR) within 30 days. The employer must withhold on the basis of the certificate until notified by the SCDOR to withhold

at a different rate.

HOW TO OBTAIN A WITHHOLDING FILE NUMBER

You must apply for a SC withholding file number in order to establish an account in which to deposit your payments. This

can be done through MyDORWAY at MyDORWAY.dor.sc.gov or by completing SCDOR-111 (Business Tax Application).

The number entitles you to be a withholding agent. Should the ownership of the business change, such as conversion

from a partnership to a corporation, a new withholding file number must be obtained. A new withholding file number is not

required for change of address. If you are required to get a new federal identification number, you are also required to get a

new SC withholding file number. Your SC withholding file number is a nine digit number. You must reference this file

number on all returns, correspondence, payments, and when any phone calls are made to the department.

MAKING PAYMENTS - RESIDENT/NONRESIDENT

Employers/withholding agents (resident and nonresident) whose South Carolina withholding tax exceeds $15,000 during a

quarter or who make 24 or more payments in a year are identified and must pay electronically via MyDORWAY.dor.sc.gov

by their due date. Any employer/withholding agent with less than $15,000 per quarter may voluntarily submit payment

electronically. Payments alone do not satisfy the filing requirement.

Any employer/withholding agent with less than $15,000 per quarter may voluntarily submit payment electronically. All others

must submit the payment using the Withholding Tax Coupon, Form WH-1601. Payments alone do not satisfy the filing

requirement for withholding returns.

Resident employers/withholding agents are required to make payment of withholding taxes at the same time that their

federal payments are due. Regardless of your state amount withheld, your payment is due at the same time that your

federal payment is due. Resident employers are those whose principal place of business is in South Carolina.

Nonresident employers/withholding agents are required to make payments either quarterly or monthly. If the South

Carolina state tax liability is less than $500 for the quarter, the payment is due by the last day of the month following the end

of the quarter. Once the withholding reaches $500 or more during the quarter, it is due by the 15th of the following month.

Nonresident employers are those whose principal place of business is outside of South Carolina.

80041015

South Carolina Withholding Tax Information Guide Form-105

Related Articles

Related forms

Related Categories