South Carolina tax relief for remote workers to end
COLUMBIA, S.C. (WIS) - A relief program aimed to help South Carolina residents during the COVID-19 pandemic is scheduled to end before July.
The South Carolina Department of Revenue (SCDOR) said relief offered to out-of-state employers on the state’s requirements for tax withholding will end on June 30, 2022.
The relief was aimed at employees who normally traveled out of state for work and temporarily began working from home during the pandemic. The targeted relief began in May of 2020.
Starting July 1, 2022 employers will need to withhold taxes from wages for every employee who work in the state, even those still temporarily working in the state because of COVID-19.
The department said the U.S. Bureau of Labor Statistics reported 10% of workers were working from home because of COVID-19 in March of this year. This is a drop from 13% in February and 11.1% in December of last year.
SCDOR offered multiple tips on what to expect with the change.
- If you live in SC and work from home for an out of state employer, state income taxes will be withheld from your check. You will need to file a SC income tax return.
- Residents who pay taxes in multiple states may be eligible for a credit on their return. It can be claimed on form SC1040TC or electronically.
- Out of state employers with remote workers in SC are subject to tax withholding laws.
- Employers must register and pay the South Carolina Withholding Tax. More details can be found at the link here.
- Employers in South Carolina who hire non residents that work outside of the state generally do not have SC taxes on remote work. Instead, employers may be required to withhold taxes according to the state the remote employee is located in.
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