For the latest news and updates on South Carolina state and local tax
November 4, 2022
South Carolina Sales Tax Implications – Retailer Imposed Fees
The South Carolina Department of Revenue has issued Revenue Ruling 22-10 regarding fees retailers are adding to invoices. These fees are often referred to as credit card fees, inflation fees, convenience fees, non-cash adjustment fees, or similar terms. The Department determined that these separately stated fees are includable in “gross proceeds of sales” or “sales price.” As such, these fees are subject to the sales and use tax if the underlying transaction is taxable. If you have questions about whether your business is required to collect sales tax on additional fees added to an invoice, please contact a member of the Withum SALT Team.
December 30, 2021
South Carolina Extends Tax Relief for Temporary Work-at-Home Employees Due to COVID-19
On December 21, 2021, the South Carolina Department of Revenue released the South Carolina Information Letter No. 21-31, extending the tax relief regarding withholding and nexus for temporary work-at-home employees due to the COVID-19 pandemic. This temporary relief pertains to a business’ establishment of nexus for income and sales tax purposes, solely because an employee is temporarily working in a different work location due to COVID-19 and provides guidance with respect to employer withholding requirements. This relief was originally extended to December 31, 2021 and has now been extended through March 31, 2022.
September 2, 2021
South Carolina Extends Covid Nexus and Withholding Relief for Employers to December 31, 2021
The South Carolina tax authority issued guidance on August 25, 2021 extending relief from income and sales tax nexus requirements and wage withholding requirements initially granted in through December 31, 2021 for a business with an employee temporarily working in a different location solely due to Covid-19. As such, employees working temporarily from South Carolina due to COVID do not by themselves create a South Carolina Income Tax, Sales Tax, or Wage Withholding Tax obligation. South Carolina’s original emergency order related to tax nexus, Information Letter #20-11, was initially issued May 15, 2020 and was originally intended to be effective from March 13, 2020 through September 30, 2020. Since issued, this emergency order has been periodically extended – and has now extended through the end of 2021. Many remote work arrangements that were intended to be temporary at the outset have now become permanent. If an employee’s circumstances change such that are no longer temporary, the tax relief no longer applies.
March 23, 2021
South Carolina Update on Extension of Filing Deadline
The South Carolina Department of Revenue (DOR) has announced that it will follow the deadline change made by the IRS for individual income tax returns, extending the due date for state individual income tax returns to May 17, 2021. The deadline extension is automatic, and taxpayers do not need to file any additional forms or call the DOR to qualify. The DOR is awaiting further guidance from the IRS and will wait to issue an information letter addressing the IRS decision and other topics. The change in the IRS deadline only affects individual income tax returns and does not affect estimated tax payments, which are still due April 15, 2021. ( Special Announcement: Individual Income Tax Due Date Extended to May 17, 2021, S.C. Dept. of Revenue, 03/18/2021. )
SCDOR Extends Tax Returns and Payment Deadlines
The South Carolina Department of Revenue (SCDOR) is offering more time to file returns and pay taxes due April 1, 2020–June 1, 2020, to assist taxpayers during the COVID-19 outbreak. Tax returns and payments due April 1–June 1 will now be due June 1, 2020. Penalty and interest will not be charged if payment is made by June 1. This includes South Carolina Individual Income Taxes, Corporate Income Taxes, Sales and Use Tax, Admissions Tax, and other taxes filed and paid with the SCDOR. The SCDOR is automatically applying this tax relief for all applicable returns and payments – you don’t need to take any additional action.
The SCDOR encourages taxpayers to:
- Use the SCDOR’s available online services. Visit MyDORWAY, the free online tax system, at MyDORWAY.dor.sc.gov to securely manage your South Carolina taxes from a smartphone or computer.
- Help protect the spread of COVID-19 by calling or emailing the SCDOR instead of visiting in person. Find the phone number or email address needed at dor.sc.gov/contact.
- Consider filing your Individual Income Taxes electronically, which is safer and faster. Visit dor.sc.gov/iit-filing to learn more. After filing, check your refund status online at dor.sc.gov/refund.
Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.
The State and Local Tax (SALT) laws vary from state to state and are constantly changing. Reach out to Withum’s SALT Team for guidance on how to navigate your state’s local tax laws.