Instructions And Specifications For Filing Forms W-2

PROCEDURES, RULES AND SPECIFICATIONS FOR SUBMITTING

WAGE AND TAX INFORMATION

PURPOSE

The purpose of this manual is to state the requirements and conditions under which wage and tax information and

information returns are reported to the South Carolina Department of Revenue.

WHO MUST FILE W-2 FORMS

Employers having an employee or employees earning income within South Carolina are subject to South Carolina

withholding laws. According to Code Section 12-8-1540, a person required to withhold income tax or who would be have

been required to withhold tax under Section 12-8-520 shall furnish on or before January thirty first of the following year a

properly completed W-2 or 1099 Form to the taxpayer(s). Forms W-2 are to be submitted with the Department of

Revenue on or before the last day of February of the following year.

WHO MUST FILE 1099 FORMS

Any person, including a corporation, partnership, individual, estate, and trust, who make reportable transactions during the

calendar year, must file the information returns with the IRS to report these transactions. If the information returns have

South Carolina income tax withholding, then payers are also required to directly submit 1099 Forms with the South

Carolina Department of Revenue on or before the last day of February of the succeeding year.

WHO MUST FILE FORM WH-1612

Anyone required to file W-2 Forms and/or 1099 Forms (with SC income tax withheld), by paper or magnetic media, with

the South Carolina Department of Revenue must file Form WH-1612 (Transmittal Form for W2s, 1099s & Magnetic

Media). The Form WH-1612 must be completed in its entirety. A Form WH-1612 is available in each South Carolina

Withholding Booklet or RS-1 manual. Form WH-1612 can also be printed from the Department of Revenue’s webpage at

Filing Form WH-1612 is not required when filing W-2 forms electronically through SCBOS.sc.gov.

FILING 250 OR MORE W-2 FORMS OR 1099 FORMS

According to South Carolina Revenue Procedure #08-5, any person who files 250 or more W-2 Forms, W2G Forms, or

1099 Forms for any calendar year must file these returns via magnetic media with the Department of Revenue. This

requirement applies separately for each type of form. All requirements apply separately to both original and corrected

forms.

Any person who files less than 250 W-2, W-2G, or 1099 Forms may submit wage and tax information or information

returns via paper forms but are encouraged to file via magnetic media or the electronic filing system.

APPLICATION TO FILE BY MAGNETIC MEDIA (FORM I-314) AND TESTING

The form I-314 is an application to file by magnetic media. The application must be completed and filed no later than

December 1st. Submitting a test file with this application is not required because testing will not be performed.

Applications that are not approved will be mailed a letter of notification stating the reason(s) why the applications were

denied. Once authorization to file by magnetic media has been granted, such approval will continue to be in effect for the

succeeding years, provided the requirements for the approved procedure are met and there are no changes in the

magnetic media specifications.

Instructions And Specifications For Filing Forms W-2 - 2011 Page 4