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South Carolina Employer Withholding Tax The Basics of Filing and Paying PowerPoint PPT Presentation

South Carolina Employer Withholding Tax The Basics of Filing and Paying This presentation is designed in general terms for widest possible use. It is intended as a guide only, and the application of its contents to a specific situation will depend on the circumstances involved.

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South Carolina Employer Withholding Tax The Basics of Filing and Paying

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South Carolina EmployerWithholding TaxThe Basics of Filing and Paying

This presentation is designed in general terms for widest possible use. It is intended as a guide only, and the application of its contents to a specific situation will depend on the circumstances involved.

The presentation may not be relied upon as a substitute for obtaining professional advice and researching original sources of authority. Nothing in this presentation supercedes, alters or otherwise changes provisions of the South Carolina Code, regulations or department advisory opinions.

April 2006

Click on the arrows at the bottom of the page to navigate through the tutorial. Click on the “Back” button in your browser tool bar anytime you want to quit this presentation.


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  • Basics of Withholding Tax

  • How to Register for a SC Withholding Number

  • Requirements and Options to Pay and File Returns (Paper and Electronic)

  • Record Keeping

  • Paying and Filing Do’s and Don’ts

  • Consequences of Not Filing and Paying

  • Electronic Funds Transfer

  • Information for Tax Service Providers/CPAs

  • Other SC Taxes You May Need to File

  • Telephone numbers to call for help

  • Calendar of Due Dates

  • Test Your Knowledge on the Basics of Withholding Tax

  • Tax Workshops Available


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Basics of Withholding Tax

  • If you will be employing others to work in your business, you will need to withhold payroll taxes for both the federal government, FICA and the State of South Carolina.

  • South Carolina requires withholding from:

  • Wages

  • Prizes

  • Royalties

  • 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

  • Net proceeds going to nonresident sellers of real estate and associated tangible personal property located in South Carolina.

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge


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Basics of Withholding Tax

  • 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 should be withheld since it is the employee’s state of legal residence.

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge


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How to Register for a Withholding Number

  • You must apply for a South Carolina Withholding number in order to establish an account in which to deposit your payments. You can apply online at www.scbos.com or by completing the Business Tax Application, form SCTC-111. This form can be found at www.sctax.org under current year tax forms. The number entitles you to be a withholding agent. The withholding number is permanent and will not be issued to any other business or person. Should the ownership of the business change, such as conversion from a partnership to a corporation, a new withholding number must be obtained. The withholding number will appear on all reports, returns and correspondence concerning the withholding agent and the account.

  • You will need to reference this number on all returns, correspondence and when any phone calls are made to the agency.

  • Your SC Withholding number will start with a 25 and is a 9 digit number.

  • You can apply for and receive your federal employer identification number at www.irs.org.

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge


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Payments and Returns

Making Withholding Payments

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge

Withholding payments can be made on DORePay at www.sctax.org, by Electronic Funds Transfer (EFT) or by paper. Withholding agents will receive a withholding package annually from the Department of Revenue with forms for filing and remitting the taxes. Each return in the package will be preprinted with the name and withholding number assigned to the withholding agent.

Mail the check and coupon to: South Carolina Department of Revenue, Withholding, Columbia, SC 29214-0004


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Filing a Withholding Return

  • There are two types of reconciliation returns:

  • Quarterly (WH-1605)

  • Fourth quarter/annual (WH-1606)

  • All withholding agents are required to file a quarterly reconciliation

  • of tax withheld during the quarter on form WH-1605. A fourth

  • quarter/annual reconciliation return (form WH-1606) must be used

  • to reconcile the withholding account for the fourth quarter and year.

  • Quarterly payers will remit fourth quarter tax due with form WH-1606.

  • Due dates for returns are:

  • First Quarter – April 30

  • Second Quarter – July 31

  • Third Quarter – October 31

  • Fourth Quarter – February 28/29

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge


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Methods of filing returns

  • Mail

  • Telefile

  • Online (eWithholding)

  • 1. Mail your return to:

  • South Carolina Department of Revenue

  • Withholding

  • Columbia, SC 29214-0004

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge


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Methods of filing returns

  • Mail

  • Telefile

  • Online (eWithholding)

  • 2. Telefile:

  • If the account was open, a tax return must be filed even if no South Carolina Withholding taxes were withheld during the covered filing period.

  • As a South Carolina business owner, you can conveniently file your withholding tax return by using the Business Tax TeleFile System, twenty-four hours a day/seven days a week. To qualify to file a withholding return, you must have a zero payment amount due with the return for the covered filing period.

  • As a first- time user you are required to register on the Business Tax TeleFile system before filing. Registration can be handled directly on the system during your initial telephone call. The registration and filing process takes less than ten minutes.

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge


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Methods of filing returns

  • Mail

  • Telefile

  • Online (eWithholding)

  • Telefile:

    • Subsequent filings take less than eight minutes. The procedure is

    • completely paperless-mailing additional documentation to the South

    • Carolina Department of Revenue is not required.

    • If you file your WH-1606 (Fourth Quarter/Annual Reconciliation)

    • using TeleFile system, you should submit your W-2’s and/or 1099’s

    • with form WH-1612 (Transmitter Summary Report Wage and Tax

    • Information). If using the TeleFile System, do not submit W-2’s and/or

    • 1099’s with the paper form WH-1606. This will result in a duplicate

    • filing and will potentially cause problems in your withholding account.

    • To use the Business Tax TeleFile System, dial (803) 898-5918 and

    • follow the instructions. Call the TeleFile Coordinator at (803)898-

    • 5111 if you need assistance with TeleFile.

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge


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Methods of filing returns

  • Mail

  • Telefile

  • Online (eWithholding)

  • Telefile:

  • If the account was open, a return must be filed even if no South

  • Carolina Taxes were withheld during the covered filing period.

  • Use Business Tax Telefile to file a “0” return. Withholding tax

  • filers must have a zero payment amount due with the return

  • for the covered filing period. Amended returns are not accepted through TeleFile.

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge


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Methods of filing returns

  • Mail

  • Telefile

  • Online (eWithholding)

  • Online (eWithholding):

  • The Department of Revenue’s Electronic Withholding System allows you to file your quarterly return and make payment by EFW (Electronic Funds Withdrawal/Bank Draft) or credit card.

  • It can be accessed by going to www.sctax.org and clicking on the eWithholding icon. To file online you need your nine digit SC Withholding number, FEIN or SSN, and bank account information or credit card. EFW payments on current period returns can be warehoused up to 30 days prior to the due date of the return.

  • You may use the system to file the following returns:

    • WH-1605 SC Withholding Quarterly Return

    • WH-1606 SC Withholding Fourth Quarter/Annual Reconciliation

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge


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Methods of filing returns

  • Mail

  • Telefile

  • Online (eWithholding)

  • Online (eWithholding):

  • For electronic purposes you must submit your tax return and payment authorization to the Department of Revenue no later than 3pm(ET) on the business day preceding the due date. Example: If your due date is Monday, the 31st you must file your return/payment before 3pm on Friday, the 28th. Payment information for balance due returns must be submitted at the time of filing or the return will not be processed.

  • To open the eWithholding program in a new browser window click here.

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge


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Record Keeping

The chart shown below is included in your Withholding tax booklet. This chart can be used to record your monthly payments, and keep track of the amount due each quarter. The chart is for your record keeping.

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge


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Paying and Filing Do’s and Don’ts

  • Common Errors on Quarterly ReturnMost common errors made when filing Withholding QuarterlyTax Return (WH-1605) and Fourth Quarter/Annual Reconciliation(WH-1606):Line 1 should include all SC Withholding from current quarter (pay checks dated) First Quarter: January, February and March (WH-1605) Second Quarter: April, May and June (WH-1605) Third Quarter: July, August, September (WH-1605) Fourth Quarter: October, November, December (Wh-1606)Lines 1 through 6 include only SC State income tax (not Federal or Unemployment tax)Return has SC Withholding number. Starts with “25” and has 9 digitsPeriod covered is for the correct period (quarter)Return is completed in black or blue inkAmended return is not sent in as original return

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge


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Paying and Filing Do’s and Don’ts

Common Errors when Making Payments

Most common errors made when making withholding payments

with WH-1601:

Quarter is not entered in QTR block on left hand side of coupon

- January, February and March pay checks – Quarter 1

- April, May and June pay checks – Quarter 2

- July, August, September pay checks – Quarter 3

- October, November and December pay checks – Quarter 4

Avoid these errors…pay online using DORePay at www.sctax.org or EFT.

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

ElectronicFunds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge


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Paying and Filing Do’s and Don’ts

Common Errors when Making Payments

Following is a sample of the WH-1601 completed incorrectly:

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge

Notice that a quarter is not indicated in the

“QTR” box above.

It is very important to indicate the quarter for which the payment is being paid on.


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Consequences of Not Filing and Paying

  • What happens if you don’t file a return?

  • South Carolina Employer Withholding Tax Return (form

  • WH-1605 and WH-1606) is to be filed for any open account

  • even if no tax is withheld. Failure to file the withholding

  • Return will result in a delinquent notice being mailed.

  • Penalties and Interest Are Imposed If You Don’t File!

  • Penalties and Interest:

  • Penalties – Penalties and interest can be determined by using

  • the Penalty and Interest calculator found on our website (click here)

  • Penalty applied for failure to file return by the due date: 5% of

  • tax due per month, or part of a month, not to exceed 25%

  • Failure to timely pay tax due: ½% per month (or portion of month)

  • up to maximum of 25%.

  • Failure to timely deposit: $10 to $1,000

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge


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Interest

Interest is charged on a return which has a balance due and

which has not been paid in full by the due date. State law

says that if any tax is not paid when due, interest is due on the unpaid portion from the time the tax was due until it is paid in its entirety.

The law also states that interest on underpayments and

overpayments is established by the DOR in the same manner,

and at the same time, as the underpayment rate provided in

Internal Revenue Code Sections 6621 and 6622. This means

that interest rates may change or can change quarterly.

So how can you avoid delinquent notices and

subsequent penalties and interest?

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge


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Avoid Delinquent Notices

  • All open SC state withholding tax accounts require quarterly (WH-1605) and fourth quarter/annual reconciliation (WH-1606) returns to be filed. Use the following tips to avoid delinquent notices, assessment notices, and tax liens.

  • Use pre-printed forms WH-1605 and WH-1606 for filing reconciliations.

  • When pre-printed returns are not available, complete the returns entirely

  • and pay any tax which may be due with the return. Returns must be

  • filed on or before the due date of the return.

  • The South Carolina Department of Revenue recognizes accounts as

  • OPEN or CLOSED. You must file while your account is open even if

  • you have no employees in a quarter. There is no inactive status.

  • File a “ZERO” return by the due date if no tax has been withheld and you

  • wish for the withholding account to remain open.

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge


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Avoid Delinquent Notices

  • Close the SC state withholding account if there is no payroll and no

  • payroll is anticipated. The withholding tax account can be reactivated

  • within three (3) years with the same SC state withholding tax account

  • number if the ownership remains the same.

  • You may close the withholding account by any of the following

  • methods:

  • - Telefile taxpayers only call 803-898-5918

  • - Use form C-278 – Account Closing Form

  • - Call SC DOR at 803-898-5709 and provide closing

  • information

  • “Close” information furnished to other state or federal agencies is not

  • provided to the South Carolina Department of Revenue. The South

  • Carolina Department of Revenue must be notified to close the SC state

  • withholding tax account.

  • A completed WH-1606 reconciliation must be filed if the account was

  • open for any portion of the calendar year. Complete lines 1-6 with zeros

  • if there was no activity in the 4th quarter. Complete lines 7-10 for annual

  • data. This form can be filed at the time you close your business.

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge


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Electronic Funds Transfer(EFT)

Withholding agents who withhold $15,000 or more state tax per

quarter are required to pay taxes with immediately available funds.

A method for doing this is through electronic funds transfer. The

Department of Revenue notifies withholding agents of their

requirement to make electronic funds transfers. Other withholding agents may participate voluntarily in the Electronic Funds Transfer (EFT) program. For additional information, contact Electronic Services at the Department of Revenue 1-800-379-9409 (statewide) or (803) 898-5740 (in Columbia).

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge


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Tax Service Providers/CPAs

If you are a tax service provider or CPA who files for 100 or

more South Carolina withholding clients, you may be eligible to

file through our new Batch Withholding program. This program

provides an electronic means of filing Withholding quarterly

returns with the SC Department of Revenue.

For more information, contact the Withholding Unit at

803-898-5383.

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge


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Other South Carolina Taxes

Unemployment Insurance Contributions

Employers of one or more workers must pay a tax on wages paid to Employees for purposes of providing unemployment compensation. This tax is administered and collected by the South Carolina Employment Security Commission.

South Carolina Employment Security Commission

1550 Gadsden Street

Post Office Box 995

Attn: UI Technical Services

Columbia SC 29202

Telephone: (803) 737-3075

Workers Compensation

Employers with four or more employees must purchase insurance or qualify as a self-insurer by meeting certain requirements in accordance with the rules and regulations of the South Carolina Worker’s Compensation. Worker’s Compensation provides benefits to employees who have sustained a job-related injury or illness. The Worker’s Compensation Commission collects premiums.

South Carolina Workers’ Compensation Commission

1612 Marion Street

Post Office Box 1715

Columbia SC 29202

Telephone: (803) 737-5700

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge


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Where Can You Get Help?

South Carolina Department of Revenue website: www.sctax.org

Official South Carolina State Government Website www.sc.gov

Click on DORBOS for information on SC DOR’s Business One Stop

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge

Forms – Statewide800-768-3676

Forms – Columbia Area803-898-5320

Publications803-898-5419

Withholding Tax Registration803-898-5872

Withholding General Questions803-898-5709

Withholding Technical Questions803-898-5383

To file Zero (0) Returns803-898-5918


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Forms

  • A preprinted SC Employer Withholding Package is mailed to all open accounts the first of each year. If you need additional forms, you can order another preprinted booklet by calling (803) 898-5709. Click on the forms below for non-preprinted forms.

  • Calendar of Due Dates

  • WH-1601XWithholding Tax Payment Coupon

  • WH-1603Withholding Tables

  • WH-1603FComputer Formula

  • WH-1605Quarterly Withholding Return (Quarters 1, 2, and 3)

  • WH-1605AAmended Quarterly Tax Return

  • WH-1606Fourth Quarter/Annual Reconciliation of Income Tax

  • WH-1606AAmended Fourth Quarter/Annual Reconciliation

  • WH-1612Transmitter Report and Summary of Magnetic Media

  • W-2Wage and Tax Statement (federal form)

  • Form W-4Withholding Exemption Certificate (federal form)

  • Form 105Information Guide – South Carolina Withholding Tax

  • SCTC-111Business Tax Application

  • SCTC-111 InsInstructions for Completing SCTC-111

  • Form C-278Account Closing Form

  • WH-400Withholding Tax Reorder/Change of Records

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge

Note: If using non-preprinted forms, complete the Name and address section along with the SC Withholding number, FEI, and Period Covered Data fields.


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Calendar of Due Dates

Basics of Withholding Tax

How to Register for a SC Withholding Number

Requirements and Options to Pay and File Returns (Paper and Electronic)

Record Keeping

Paying and Filing Do’s and Don’ts

Consequences of Not Filing and Paying

Electronic Funds

Transfer

Information for Tax

Service Providers/

CPAs

Other SC Taxes You May Need to File

Test Your Knowledge

Fourth Quarter/Annual

Reconciliation Due

(WH-1606) with W-2s

First Quarter Return

Due (WH-1605)

Second Quarter Return Due

(WH-1605)

Third Quarter Return Due

(WH-1605)


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Test Your Basic Knowledge of Withholding Tax

  • When are you required to withhold payroll taxes?

    • Only if you have more than five employees

    • Anytime you employ others to work in your business

    • When the total withholding exceeds $1000

  • How do you register for a withholding number?

    • By completing the Business Tax Application form SCTC-111 or registering online at the Department of Revenue website, www.sctax.org (DOR BOS)

    • You don’t have to. You’ll automatically get one when you get your Federal Id number.

    • Contact the Employment Security Commission

  • When should you obtain a new withholding number?

    • The ownership of the business changes, such as conversion from a partnership to a corporation

    • At the same time you get a new Federal number

    • All of the above


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Test Your Knowledge(continued)

How can withholding payments be made?

(a) On DORePay at www.sctax.org

(b) By Electronic Funds Transfer (EFT) or by paper

(c) All of the above

  • What type of form should South Carolina resident withholding agents use

  • when making deposits at their local banks?

  • Non-preprinted form WH-1601

  • Pre-printed form WH-1601

  • None of the above

  • If a payment is made using a non-preprinted WH-1601X, or a late payment

  • is made, how do you get this to the Department of Revenue?

  • Your local bank will take it

  • Mail the check and coupon (WH-1601X) to: S C Dept. of Revenue, Withholding, Columbia, SC 29214-0004

  • Mail the check and coupon to the IRS.


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Test Your Knowledge(continued)

  • What are the two types of reconciliation returns?

    • Quarterly (WH-1605) and Fourth quarter/annual (WH-1606)

    • Quarterly (WH-1605) and coupon (WH-1601)

    • Quarterly (WH-1605) and coupon (Wh-1601X)

  • What form should quarterly payers use to remit the fourth quarter tax due?

    • WH-1606

    • WH-1601

    • WH-1605

  • What are the due dates for the quarterly returns?

    • First Quarter – April 1, Second Quarter – July 1, Third Quarter – October 1, Fourth Quarter – February 1

    • First Quarter – April 30, Second Quarter – July 31, Third Quarter – October 31, Fourth Quarter – February 28/29

    • First Quarter – April 15, Second Quarter – July 15, Third Quarter – October 15, Fourth Quarter – February 15


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Test Your Knowledge(continued)

  • If your account was open, a withholding tax return must be filed even if no

  • South Carolina Withholding taxes were withheld during the covered filing

  • period. What is the quickest and easiest method to file in this case?

    • Mail the proper form showing “0” amount due to the SC Dept. of Revenue

    • Take the proper form to your financial institution.

    • Use the Department of Revenue’s TeleFile System which is available 24 hours a day/seven days a week.

  • If you file your WH-1606 (Fourth Quarter/Annual Reconciliation) using

  • Telefile system, you should submit your W-2s and/or 1099s with which form?

    • WH-1606

    • WH-1612

    • WH-1605

  • What are the two electronic payment methods offered by the Dept. of Revenue?

    • DORePay or EFT (Electronic Funds Transfer)

    • Electronic methods are not available


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Test Your Knowledge(continued)

  • What happens if you don’t file a return?

    • Nothing

    • Don’t worry about it, file later

    • Failure to file the withholding return will result in a delinquent notice and possible penalties and interest.

  • Who is required to file/pay withholding tax using the EFT (Electronic Funds

  • Transfer) program?

    • Withholding agents who withhold $15,000 or more state tax per quarter

    • Withholding agents who withhold $5,000 or more state tax per quarter

    • Withholding agents who withhold $10,000 or more state tax per quarter

This completes our presentation on the basics of Employer Withholding Tax. Click on the next button for information on Instructor-led workshops and to give the Dept. of Revenue feedback on information provided on this web page.


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Incorrect.Withholding agents who withhold $15,000 or more state tax per quarter are required to pay taxes with immediately available funds using the EFT (Electronic Funds Transfer) program.

Other withholding agents may participate voluntarily. Call

1-800-379-9409 (statewide) or (803) 898-5740 (in Columbia)

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Incorrect.If you don’t file the withholding return, you’ll receive a delinquent notice and subsequent penalties and interest may be charged.

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Incorrect.The two electronic payment methods are:

DORePay located on the Department of Revenue website, www.sctax.org or through the EFT (Electronic Funds Transfer) program.

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Incorrect.You should use the WH-1612 to submit your

W-2s and/or 1099s if you used Telefile to submit your Fourth Quarter/Annual Reconciliation) form WH-1606.

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Incorrect.The quickest and easiest way to file a “0” payment is to use the SC Department of Revenue’s TeleFile system which is available twenty-four hours a day/seven days a week. (Telephone number – 803-898-5918)

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Incorrect.First Quarter is due April 30, Second Quarter

July 31, Third Quarter – October 31, Fourth Quarter – February

28/29.

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Incorrect.The two types of reconciliation returns are:

Quarterly (WH-1605) and Fourth quarter/annual (WH-1606).

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Incorrect.Form WH-1606 should be used to remit

fourth quarter tax due.

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Incorrect.You should mail the check and coupon to:

South Carolina Department of Revenue

Withholding

Columbia, SC 29214-0004

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Incorrect.The preprinted form WH-1601 should be used.

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Correct!You should use the preprinted WH-1601.

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Correct! Payments can be made by DORePay as well as Electronic Funds Transfer (EFT) or by paper.

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Incorrect. The correct answer is “b”. If you will be employing others to work in your business, you will need to withhold payroll taxes for both the federal government, FICA and the State of South Carolina.

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Incorrect. You can register by completing the Business Tax Application, SCTC 111, or on-line at the Department of Revenue website, www.sctax.org, DOR BOS.

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Incorrect.You’ll need to get a new withholding number if the ownership of the business changes, such as conversion from a partnership or to a corporation. Also you’ll need to get a new State of SC number when you get a new Federal number.

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That’s Correct!

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That’s Correct!

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That’s Correct!

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That’s Correct!

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That’s Correct!

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That’s Correct!

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That’s Correct!

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Tax Workshops

Information provided in this e-learning module is also available in an instructor-led workshop.

Information about Workshops can be found by clicking the “Workshops” icon.

Click on the icon to the right to take a short survey on this withholding tutorial. Your comments and feedback will help us continually improve the services provided by the Department of Revenue.

Workshops

You may also contact us by using this e-mail address: [email protected]


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