South Carolina Unfiled Payroll Tax Returns Checklist
Introduction
Unfiled South Carolina withholding returns create a compliance gap even when you made payments on time, because payments alone do not satisfy the return filing requirement. The
South Carolina Department of Revenue (SCDOR) can treat missing returns as a filing problem
that requires its resolution steps.
This checklist focuses on South Carolina income tax withholding returns and the SCDOR filing framework, since South Carolina does not administer all payroll-related taxes through a single agency. You can file current returns while you work through older missing periods, and you can use MyDORWAY to manage many filing and payment tasks.
What Unfiled Returns Mean For South Carolina
Withholding
An unfiled withholding return is a required filing for a period when your South Carolina withholding account remains open, even if you withheld no South Carolina income tax during that quarter. You can make payments and remain noncompliant if you do not submit the correct return for the period.
SCDOR uses specific withholding returns and due dates rather than a generic “payroll tax return” form. You file WH-1605 for the first three quarters, and you file WH-1606 for the fourth quarter and annual reconciliation when the account was open for any part of the year.
What Can Happen If You Do Not File
SCDOR can issue notices when you overlook a filing, and you should read every notice carefully and follow the instructions it provides. The agency can take collection steps after an assessment becomes final and remains unresolved, and you should treat deadlines as operational requirements for your case.
South Carolina law provides a civil failure-to-file penalty structure that can add to the tax required to be shown on the return, with monthly additions and a maximum cap under the statute. South Carolina law also provides failure-to-pay penalties and interest rules that apply when tax remains unpaid after it is due.
Forms And Filing Channels You Will Use
You should use the SCDOR withholding forms that match the filing period, and you should not substitute an individual income tax form for an employer withholding return. The SCDOR withholding forms list includes WH-1601 for payments, WH-1605 for quarterly returns, and
WH-1606 for fourth-quarter and annual reconciliation.
You must file and pay electronically on MyDORWAY when you withhold $15,000 or more per quarter or when you make 24 or more withholding payments in a year. MyDORWAY also provides transaction confirmations and access to correspondence, helping you track what the
SCDOR shows as filed or missing.
Filing Checklist
Step 1: Locate And Review Any SCDOR Notice
Start by searching your mail and records for a notice that references a missing filing or a proposed assessment, and record the tax type and periods shown. You can identify a notice by its title and notice number, and you should rely on the contact information listed on that notice when it is present.
If you believe a notice may not be legitimate, use SCDOR scam-protection guidance. The department also provides a general assistance phone line for notices that do not list specific contact information.
Step 2: Collect Payroll Records And Payment Evidence By Period
Gather payroll records for each period that appear unfiled and organize them by quarter and year so you can prepare the correct return. Keep records that support the amounts withheld and proof of payments for each period, because payments can post even when a return is missing.
Maintain copies of what you plan to file, along with the delivery confirmation that matches your filing method. MyDORWAY provides immediate confirmations for transactions and can help you track correspondence and return history once your account access is in place.
Step 3: Confirm Missing Periods Through Official SCDOR Channels
Use the contact information on your notice when it is available, as the issuing division can confirm what the SCDOR records show for the identified periods. If your notice does not list specific contact information, use the SCDOR general assistance line for notice questions about the notice.
You can also use MyDORWAY to send a web message linked to your account, which helps route your request to the right area.
Step 4: Prepare The Correct Return For Each Missing Period
Prepare WH-1605 for the first, second, and third quarters, and do not use WH-1605 for the fourth quarter. Use WH-1606 for the fourth quarter and annual reconciliation when your withholding account was open for any part of the calendar year.
File the return even when no South Carolina income tax was withheld during the quarter if the withholding account is open. This requirement applies regardless of payment activity.
Step 5: Determine If You Meet Mandatory Electronic Filing Rules
Check whether you withheld $15,000 or more per quarter or made 24 or more withholding payments in a year, because those thresholds require electronic filing and payment through
MyDORWAY. Treat this requirement as mandatory, not optional.
If you file 10 or more South Carolina withholding returns in a quarter for multiple clients, you may qualify to use the Batch Withholding Program, but you must apply before using it.
Step 6: File The Returns And Keep Proof Of Submission
File online through MyDORWAY or mail a paper return to the address listed on the specific form, and keep a complete copy of what you submitted. Do not mail a return if you file it electronically.
If the SCDOR later issues a failure-to-file notice for a period you filed, verify that the return matches the correct account and quarter shown on the notice. Filing the return satisfies the notice once the SCDOR receives and processes it.
Step 7: Address Balances And Consider Payment Plans When Eligible
Pay what you owe using the options available for your case, and use MyDORWAY when possible, as it consolidates payments and tracks your account. Processing and posting may take several business days.
If you need more time to pay, SCDOR offers Payment Plan Agreements with eligibility limits and requirements, including setup fees and bank-draft expectations. You cannot request a plan while an active levy or garnishment is in place.
- Treating a payment as a substitute for filing: Submitting a payment without filing the
- Assuming zero withholding means no return is required: When your withholding
- Using the wrong form for the quarter: Filing WH-1605 for the fourth quarter or failing
- Filing returns under the wrong account number or tax type: Returns posted to an
- Ignoring SCDOR notices or setting them aside: Notices often include response
- Missing protest or appeal deadlines: Proposed assessments become final if you do
- State enforcement notices and responses
- Sales tax audits, assessments, and collections
- Payroll & trust fund tax enforcement issues
- Penalty and interest reduction options
- Payment plans and state tax relief eligibility
- Representation before state tax agencies
Step 8: Follow Up, Track Processing, And Use Appeals When
Appropriate
Allow 30–60 days for processing as a practical timeframe, and follow up through official channels if the account still shows missing periods. MyDORWAY provides tools to track filings and correspondence once returns are posted.
If you disagree with a proposed assessment, you have a defined appeal process and a 90-day deadline to file a written protest. Collection activity can begin if you do not appeal on time.
Common Mistakes To Avoid required return does not satisfy South Carolina’s filing requirement and can still trigger failure-to-file notices. account is open, you must file a return for each required period, even if no tax was withheld. to file WH-1606 for annual reconciliation can leave the period marked as unfiled. incorrect account may not resolve the missing period shown on an SCDOR notice. deadlines, appeal rights, or instructions that affect your options if you delay. not file a written protest within the 90-day window.
Frequently Asked Questions
If I paid on time, why do I still show unfiled withholding returns?
SCDOR treats filing as a separate requirement from payment. A missing return can still trigger a failure-to-file issue even when payments exist for the period.
Do I have to file when I had no employees or zero withholding?
You must file a quarterly return when your withholding account is open, even if you withheld no
South Carolina income tax during the quarter.
How do I dispute an SCDOR proposed assessment?
You must file a written protest within 90 days of the notice date. If the deadline falls on a weekend or a state holiday, it is moved to the next business day.
Can SCDOR suspend licenses for noncompliance that it administers?
South Carolina law allows the department to refuse to issue or to revoke licenses when a taxpayer fails to comply with laws or regulations it administers. A revoked license blocks the issuance of a new license until liabilities are resolved.
Closing
Unfiled South Carolina withholding returns become manageable when you match each missing period to the correct SCDOR return, file through MyDORWAY when required, and keep submission proof for every quarter. You improve outcomes when you respond to notices using the contact information shown on the notice and track posting status through your account tools.
If you still see missing periods after the filing process, you should follow up through
MyDORWAY messaging or the SCDOR contact paths for withholding, and you should use the formal appeal process when you dispute a proposed assessment. You protect your records by retaining copies of filed WH‑1605 or WH‑1606 returns and any related correspondence.
Facing State Tax Enforcement Action?
If you’ve received a notice related to sales tax or payroll tax enforcement and aren’t sure how to respond, our team can help you understand your options and next steps.
We help with:
20+ years experience • Same-day reviews available
