Yes. If your Withholding Tax account is open, you must file quarterly returns even if there was no withholding for the quarter. If a return is not filed, you will receive a Failure to File notice. 

​ Taxpayers who withhold $15,000 or more per quarter or who make 24 or more withholding payments in a year must file and pay electronically. File online using MyDORWAY >

• You can file a Withholding return (WH-1605 or WH-1606) online or by mailing a paper return. 
• File Online (preferred) with our free tax portal, MyDORWAY 
  
• Paper Filing: Complete the applicable form and mail it to the address on the form.
  

Yes. If a withholding account is open during any portion of the year, a 4th Quarter/Annual reconciliation return (WH-1606) is required. (The return is required because it contains information relating to the entire year, not just the 4th quarter).

​If you need to close your Business Tax account, you have two options:

• Log in to MyDORWAY​, then select the More tab, and click Close a Tax Account to get started.
  OR
• Indicate your account closure on your final tax return by selecting Close Withholding Account and provide the date of last payroll.​
  

Wages are taxed in the state in which they are earned. If the employee is working in South Carolina, regardless if they are a resident, the income earned in South Carolina is taxed by South Carolina - so you should withhold for South Carolina​.

A military spouse can retain a tax domicile in a state other than the state of residency as long as the following conditions are satisfied:

1) The state where the service member and spouse are living is not the domicile of the spouse or the service member;
2) The spouse resides in the state solely in order to live with the service member;
3) The service member is present in the state as a result of military orders; and
4) The spouse and the service member both have the same domicile.

See SC Revenue Ruling #10-5 for more information.

You can apply for a SC Withholding File Number using either of two ways:

1. Register on MyDORWAY. By registering on MyDORWAY, you may receive your Withholding File Number the same day you register
   
   
2. You may download a copy of the SCDOR-111 (Tax Registration Application)  from our website. Complete the form and mail it to the address provided. In approximately three weeks you will receive a letter informing you of the SC Withholding File Number that has been assigned to you along with a packet of withholding information.

Y​our SC Withholding File Number is a 9-digit number. Reference this number on all returns, correspondence and any phone calls made to the Department.

If the withholding account is open, a quarterly return needs to be filed. If a quarterly return is not filed, a failure to file notice will be mailed. If you are not going to have employees in the near future, the account should be closed as of your last payroll date.

If you have an open withholding account, you are required to file a return, even if you had no withholding for the quarter.

If a withholding application was submitted in error, then it is recommended that the withholding account be closed. The account must be closed on MyDORWAY​.

You may pay the amount owed online through MyDORWAY. You may also write a check, attach it to a copy of the notice and mail it to the SCDOR at the address on the notice. You may not pay any past due notices by EFT.

Review your copy of the return and verify that it is for the same quarter as the Notice. You can file your return and make payments using MyDORWAY. If a payment is due, send the payment along with a copy of the return to SCDOR, or file the return and payment amount due using MyDORWAY. Filing the return electronically or by paper will satisfy the notice.

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 electronically file using MyDORWAY or mail a paper return to the address on the form. Once the return is received (by either method), the notice will be satisfied.

 New hires are reported at www.newhire.sc.gov or by calling 1-803-898-9235

For Federal assistance, the IRS has a Business & Specialty Tax Line at 1-800-829-4933.

If you issued a W-2 with SC wages and/or SC withholding, you must submit a copy (by paper or online) to the SCDOR. We only require you to submit 1099s to the SCDOR that have SC withholding on them.

If you are required to file W-2 and 1099 forms online with the Social Security Administration, then you are required to file them online with the SCDOR. All employers who submit 10 or more W-2 or 1099 forms are required to submit them electronically using MyDORWAY. Even if you are not required to file W-2 or 1099 forms online, it is the preferred method.

Submitting W-2 and 1099 forms online is the preferred method and mandatory if you are required to electronically file with the Social Security Administration. All employers who submit 10 or more W-2 forms are required to submit them electronically using MyDORWAY.

You can file W-2 and 1099 forms online using the W-2/1099 portal on MyDORWAY. You are not required to submit a paper copy of the WH-1612 to the SCDOR if you file online using MyDORWAY. 

You can also use MyDORWAY to submit your W-2c, W-2G, 1099-R, 1099-NEC, and 1099-MISC forms to the SCDOR. If you are submitting 10 or more forms, you must submit them using MyDORWAY. 

Electronic filing is the preferred method but if you issue less than 10 W-2 forms, 1099 forms, or both, you can submit them by paper along with form WH-1612. 

The SCDOR no longer accepts W-2 or 1099 forms submitted by CD-ROM.

To protect against identity theft, the IRS allows employers to truncate, or partially mask using an asterisk or other symbol, employee SSNs, FEINs, or ITINs on the W-2 or 1099 that the employer provides to the employee. The W-2 and 1099 that the employer provides to the SCDOR, IRS, and/or Social Security Administration must have the full SSN, FEIN, or ITIN.

Employers may not truncate their own identification number on any forms given to employees, the SCDOR, IRS, or Social Security Administration.

Incorrect information on the W-2 can cause problems for taxpayers trying to file their Individual Income Tax returns. You must provide your employees with corrected W-2 information. You should prepare W-2c for each employee. In addition, you should 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.

You may still file your Individual Income Tax return using an SC4852​, Substitute Form W2 Wage and Tax Statement. Submit your completed SC4852 along with your Individual Income Tax return.

Additional information is available on the RS-1 Manual.

No, only one type of filing is required.