As promised (see Tax Alert 2016-1040), the South Carolina Department of Revenue has released updated employer income tax withholding tables effective for calendar year 2017.

The annual computer formula can be found here and the wage bracket withholding tables are here.

Like the Internal Revenue Service, the Department now plans to issue updates every year.

Forms W-2 for calendar year 2016 due by January 31, 2017

As we reported in Tax Alert 2016-803, South Carolina employers must now submit Forms W-2 and Form WH-1606, South Carolina Withholding Fourth Quarter and Annual Reconciliation Return to the Department by January 31, rather than the previous due date of the last day of February. (HB 4328, signed by the governor on April 21, 2016.)

The change was effective upon enactment, making calendar year 2016 Forms W-2 and WH-1606 due January 31, 2017.

Employers submitting 250 or more Forms W-2 must file electronically over the Department's MyDORWAY system.

Business tax telefile option has ended

As we reported in Tax Alert 2016-712, the option to file zero withholding tax returns by telephone over the Business Tax Telefile system ended August 1, 2016.

Businesses that formerly used Telefile must begin filing withholding tax returns either on paper using Form WH-1605, South Carolina Withholding Quarterly Tax Return, for the first, second and third quarters of the year and Form WH-1606 for the fourth quarter, or electronically over the Department's MyDORWAY system.

For more information about withholding tax, see the Department's website, call +1 803 898 5000 or send an email to withholdtax@dor.sc.gov.

———————————————

———————————————