South Carolina Employment Law Update – January 2017

South Carolina

Income Withholding and Reporting – DOR Releases Information Letter on Withholding Date Changes

On January 26, 2017, the South Carolina Department of Revenue (DOR) issued an information letter (#17-3) to remind income tax practitioners and taxpayers of new dates for certain withholding filings and remittances.

As previously reported, the due date for filing Forms W-2 and Forms 1099 has been changed to on or before the last day of January following the calendar year of the withholding. Previously, the due date was on or before the last day of February following the calendar year of the withholding. Taxpayers and practitioners are reminded that the due date for filing the fourth quarter withholding return and the annual recapitulation and reconciliation of taxes withheld and paid is also changed to on or before the last day of January following the calendar year of the withholding. The due date for both had been on or before the last day of February following the calendar year of the withholding.

The DOR notes that the due date for a partnership to file a return and remit the withholding on a nonresident partner has been changed to on or before the fifteenth day of the third month following the close of its tax year. Previously, the due date was on or before the fifteenth day of the fourth month following the close of its tax year. The due date for a partnership to remit withholding on a nonresident partner is on or before March 15 for a calendar year partnership. For a fiscal year partnership, the due date to remit the withholding on a nonresident partner is on or before the fifteenth day of the third month following the close of its tax year.

The due date for an S corporation to remit withholding on a nonresident shareholder remains on or before the fifteenth day of the third month following the close of its tax year.

Read Information Letter 17-3