South Carolina Again Extends Nexus, Withholding Relief

The South Carolina Department of Revenue has announced another extension of temporary nexus and income tax withholding requirements for employers with workers who are teleworking because of the COVID-19 pandemic.

Information Letter 21-22, dated August 25, extends the temporary relief — initially provided in May 2020 via Information Letter 20-11 — through December 31.

Under South Carolina law, businesses in the state are required under S.C. Code of Laws section 12-8-520 to withhold income tax on the wages of residents and nonresidents who work there. South Carolina residents who work out of state are not subject to withholding if their wages are subject to withholding in the state in which they work. (Tax Notes, 8/26/2021