INSTRUCTIONS: SC WITHHOLDING FOURTH QUARTER/ANNUAL RECONCILIATION (Form WH-1606)

Business operating in South Carolina are required to document taxes withheld from worker wages. Those who meet certain income requirements file a form WH-1606, while those who earn use this to document wages withheld during their fourth quarter. This document must be filed even if no taxes were withheld. The form can be found on the website of the South Carolina Department of Revenue.

SC Withholding Fourth Quarter/Annual Reconciliation WH-1606 Step 1: Enter your name and address in the blank space provided. Note if this is an amended return, one documenting a change of address, or if your account should be closed. If so, give the date on which it should be closed and the reason.

SC Withholding Fourth Quarter/Annual Reconciliation WH-1606 Step 2: Enter your state withholding number, your federal employer identification number and the year. Circle the month which ends the quarter you are filing for.

SC Withholding Fourth Quarter/Annual Reconciliation WH-1606 Step 3: Lines 1 through 6 are only for those filing fourth quarter information, while lines 7 through 10 are only for those filing an annual return. Enter your total fourth quarter state income tax withheld on line 1.

SC Withholding Fourth Quarter/Annual Reconciliation WH-1606 Step 4: Enter all state income tax deposits or payments made on line 2.

SC Withholding Fourth Quarter/Annual Reconciliation WH-1606 Step 5: If line 2 is greater than line 1, enter the difference on line 3. This is the refund you are owed. If line 1 is greater than line 2, enter the difference on line 4. This is the tax due.

SC Withholding Fourth Quarter/Annual Reconciliation WH-1606 Step 6: If filing late, you must calculate penalty and interest due on line 5 and add this to line 4. Enter the resulting sum on line 6.

SC Withholding Fourth Quarter/Annual Reconciliation WH-1606 Step 7: If filing on an annual basis, enter the total taxes withheld for each quarter on line 7. On line 8, enter how much of this total was reported on W2 forms and how much on 1099s. This total sum should equal line 7.

SC Withholding Fourth Quarter/Annual Reconciliation WH-1606 Step 8: Enter the total state wages from W2 and 1099 income on line 9. Enter the total number of W2s and 1099s submitted with WH-1612 on line 10.