Withholding Tax is taken out of taxpayer wages to go towards the taxpayer’s total yearly Income Tax liability.
Every employer that has an employee earning wages in South Carolina and who is required to file a Withholding return with the IRS is also a withholding agent in South Carolina. They must:
- Withhold taxes from each employee’s paycheck.
- File a quarterly withholding return with the SCDOR for any taxes that have been withheld for state purposes.
- Pay the amount withheld from employee wages to the SCDOR.